##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934    
| 
|  |  | For the fiscal year ended December 31, 2005 or                                              
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|  |  | For the transition period
    from           to                                             

Commission file number 0-15392


REGENT COMMUNICATIONS, INC.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 31-1492857                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

2000 Fifth Third Center


511 Walnut Street


Cincinnati, Ohio 45202


(Address of principal executive offices) (Zip Code)


(513) 651-1190


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, $.01 par value per share


(Title of class)


Rights to purchase Series J Junior Participating Preferred
Stock


(Title of class)


o þ


o þ


þ o


S-K 10-K 10-K. o


12b-2


o þ o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE


10-K.










---



##### 










REGENT COMMUNICATIONS, INC.


INDEX TO ANNUAL REPORT


ON FORM 10-K


|         |  |                                                                                                                      |  |      |    | 
|-------- |  | -------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|         |  |                                                                                                                      |  | Page |   
|         |  |                                                                                                                      |  |      |   
|Part I  
|Item 1   |  | Business                                                                                                             |  |      | 2  | 
|Item 1A  |  | Risk Factors                                                                                                         |  |      | 17 | 
|Item 1B  |  | Unresolved Staff Comments                                                                                            |  |      | 22 | 
|Item 2   |  | Properties                                                                                                           |  |      | 22 | 
|Item 3   |  | Legal Proceedings                                                                                                    |  |      | 22 | 
|Item 4   |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |      | 22 | 
|        
|Part II 
|Item 5   |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |      | 23 | 
|Item 6   |  | Selected Financial Data                                                                                              |  |      | 25 | 
|Item 7   |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |      | 26 | 
|Item 7A  |  | Quantitative and Qualitative Disclosures
    about Market Risk                                                       |  |      | 44 | 
|Item 8   |  | Financial Statements and Supplementary
    Data                                                                      |  |      | 45 | 
|Item 9   |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |      | 78 | 
|Item 9A  |  | Controls and Procedures                                                                                              |  |      | 78 | 
|Item 9B  |  | Other Information                                                                                                    |  |      | 78 | 
|        
|Part III
|Item 10  |  | Directors and Executive Officers of the
    Registrant                                                               |  |      | 79 | 
|Item 11  |  | Executive Compensation                                                                                               |  |      | 79 | 
|Item 12  |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  |      | 79 | 
|Item 13  |  | Certain Relationships and Related
    Transactions                                                                   |  |      | 79 | 
|Item 14  |  | Principal Accounting Fees and Services                                                                               |  |      | 79 | 
|        
|Part IV 
|Item 15  |  | Exhibits, Financial Statement Schedules                                                                              |  |      | 80 | 
|EX-10.M 
|EX-21   
|EX-23.1 
|EX-23.2 
|EX-31.A 
|EX-31.B 
|EX-32.A 
|EX-32.B 











1



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PART I







|        |          
|------- | ---------
|Item 1. | Business.

General Development of Business


Investing in Radio
2005 Market Report








| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a greater use of radio advertising compared to the national
    average;                                                                                    
|
| |  | growth in advertising revenues as national and regional
    retailers expand into mid-sized and small markets;                                              
|
| |  | less direct format competition due to a smaller number of owners
    in any given market; and                                                               
|
| |  | lower overall susceptibility to fluctuations in general economic
    conditions due to a lower percentage of national versus local
    advertising revenues.





Completed Disposition




Acquisition Strategy




2



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| |   |                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------
| |  | greater revenue and station operating income diversity;                                                                 
|
| |  | improved station operating income through the consolidation of
    facilities and the elimination of redundant expenses;
|
| |  | enhanced revenue by offering advertisers a broader range of
    advertising packages;                                   
|
| |  | improved negotiating leverage with various key vendors;                                                                 
|
| |  | enhanced appeal to top industry management talent; and                                                                  
|
| |  | increased overall scale, which should facilitate our capital
    raising activities.                                    





| |   |                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------
| |  | assess format quality and effectiveness so that we can refine
    station formats in order to increase audience and revenue share;  
|
| |  | upgrade transmission, audio processing and studio facilities;                                                                       
|
| |  | expand and strengthen sales staff through active recruiting and
    in-depth training;                                              
|
| |  | convert acquired stations to our communications network and
    centralized networked accounting system; and                        
|
| |  | establish revenue and expense budgets consistent with the
    programming and sales strategy and corresponding cost
    adjustments.



Operating Strategy




Ownership of Strong Radio Station Clusters.




3



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##### Table of Contents





Aggressive Sales and Marketing. on-site


Targeted Programming and Promotion.




| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | creating distinct, highly visible profiles for our on-air
    personalities, particularly those broadcasting during morning
    drive time, which traditionally airs between 6:00 a.m. and
    10:00 a.m.;
|
| |  | formulating recognizable brand names for select
    stations; and                                                                                                                                         
|
| |  | actively participating in community events and charities.                                                                                                                                                 

Decentralized Operations.


Station Portfolio








| |   |                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The abbreviation MSA in the table means the
    markets rank among the largest metropolitan statistical
    areas in the United States.                                                                                                                         
|
| |  | In the Primary Demographic Target column, the letter
    A designates adults, the letter W
    designates women and the letter M designates men.
    The numbers following each letter designate the range of ages
    included within the demographic group.
|
| |  | Station Cluster Rank by Market Revenue Share in the table is the
    ranking, by radio cluster market revenue, of each of our radio
    clusters in its market among all other radio clusters in that
    market.                                                  

4



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| |   |                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We obtained all metropolitan statistical area rank information,
    market revenue information and station cluster market rank
    information for all of our markets from Investing in Radio
    2005 Market Report, published by BIA Publications, Inc.                                                                                    
|
| |  | We obtained all audience share information from the Fall 2005
    Radio Market Report published by The Arbitron Company, the
    radio broadcast industrys principal ratings service. We
    derived station cluster audience share based on persons
    ages 12 and over, listening Monday through Sunday,
    6:00 a.m. to 12:00 midnight.
|
| |  | N/A indicates the market has no MSA rank and is not rated by
    Arbitron.                                                                                                                                                                                                                                                                   

|                     |           |      |     |         |             |         |                        |         |        |         |         |     |          |  |  |  |      |  | 
|-------------------- | --------- | ---- | --- | ------- | ----------- | ------- | ---------------------- | ------- | ------ | ------- | ------- | --- | -------- |  |  |  | ---- |  | 
|                     |           |      |     |         |             |         |                        | Station |        |         |        
|                     |           |      |     |         |             |         |                        | Cluster |        |         | Station |    
|                     |           |      |     |         |             |         |                        | Rank by |        |         | Cluster |    
|                     |           |      |     | Station |             | Primary |                        |         | Market |         |         | 12+ |         
|Radio Market/        |           | MSA  |     |         | Programming |         | Demographic            |         |        | Revenue |         |     | Audience | 
|Station Call Letters |           | Rank |     |         | Format      |         | Target                 |         |        | Share   |         |     | Share    | 
|                     |           |      |     |         |             |         |                        |         |        |         |         |     |          | 
|Albany, NY           |           |      | 59  |         |             |         |                        |         |        |         |         |     | 3        |  |  |  | 17.2 | 
|                     | WQBJ(FM)  |      |     |         |             |         | Rock                   |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                     | WQBK(FM)  |      |     |         |             |         | Rock                   |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                     | WABT(FM)  |      |     |         |             |         | Hot Adult Contemporary |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WGNA(FM)  |      |     |         |             |         | Country                |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WTMM(AM)  |      |     |         |             |         | Sports                 |         |        | M 35+   |         |     |          |  |  |  |      |  | 
|Bloomington, IL      |           |      | 235 |         |             |         |                        |         |        |         |         |     | 1        |  |  |  | 36.3 | 
|                     | WJBC (AM) |      |     |         |             |         | News/Talk              |         |        | A 35-54 |         |     |          |  |  |  |      |  | 
|                     | WBNQ (FM) |      |     |         |             |         | Hot Adult Contemporary |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                     | WBWN (FM) |      |     |         |             |         | Country                |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WTRX (FM) |      |     |         |             |         | Classic Rock           |         |        | M 25-54 |         |     |          |  |  |  |      |  | 
|                     | WJEZ (FM) |      |     |         |             |         | Adult Contemporary     |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|Chico, CA            |           |      | 190 |         |             |         |                        |         |        |         |         |     | 2        |  |  |  | 16.7 | 
|                     | KFMF(FM)  |      |     |         |             |         | Rock                   |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                     | KALF(FM)  |      |     |         |             |         | Country                |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | KQPT(FM)  |      |     |         |             |         | Alternative            |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                     | KZAP(FM)  |      |     |         |             |         | Rhythmic CHR           |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|El Paso, TX          |           |      | 70  |         |             |         |                        |         |        |         |         |     | 2        |  |  |  | 13.4 | 
|                     | KSII(FM)  |      |     |         |             |         | Hot Adult Contemporary |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                     | KLAQ(FM)  |      |     |         |             |         | Rock                   |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                     | KROD(AM)  |      |     |         |             |         | News/Talk              |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Evansville, IN       |           |      | 155 |         |             |         |                        |         |        |         |         |     | 2        |  |  |  | 38.3 | 
|                     | WKDQ(FM)  |      |     |         |             |         | Country                |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WJLT(FM)  |      |     |         |             |         | Oldies                 |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                     | WDKS(FM)  |      |     |         |             |         | CHR                    |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                     | WYNG(FM)  |      |     |         |             |         | Sports                 |         |        | M 25-54 |         |     |          |  |  |  |      |  | 
|                     | WGBF(FM)  |      |     |         |             |         | Rock                   |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                     | WGBF(AM)  |      |     |         |             |         | Talk                   |         |        | A 35+   |         |     |          |  |  |  |      |  | 

5



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|                        |          |      |     |         |             |         |                         |         |        |         |         |     |          |  |  |  |      |  | 
|----------------------- | -------- | ---- | --- | ------- | ----------- | ------- | ----------------------- | ------- | ------ | ------- | ------- | --- | -------- |  |  |  | ---- |  | 
|                        |          |      |     |         |             |         |                         | Station |        |         |        
|                        |          |      |     |         |             |         |                         | Cluster |        |         | Station |    
|                        |          |      |     |         |             |         |                         | Rank by |        |         | Cluster |    
|                        |          |      |     | Station |             | Primary |                         |         | Market |         |         | 12+ |         
|Radio Market/           |          | MSA  |     |         | Programming |         | Demographic             |         |        | Revenue |         |     | Audience | 
|Station Call Letters    |          | Rank |     |         | Format      |         | Target                  |         |        | Share   |         |     | Share    | 
|                        |          |      |     |         |             |         |                         |         |        |         |         |     |          | 
|Flint, MI               |          |      | 119 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 26.3 | 
|                        | WCRZ(FM) |      |     |         |             |         | Adult Contemporary      |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                        | WWBN(FM) |      |     |         |             |         | Rock                    |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                        | WFNT(AM) |      |     |         |             |         | Nostalgia               |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                        | WRCL(FM) |      |     |         |             |         | Rhythmic CHR            |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                        | WQUS(FM) |      |     |         |             |         | Classic Hits            |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                        | WLSP(AM) |      |     |         |             |         | Variety                 |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Ft. Collins-Greeley, CO |          |      | 130 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 17.4 | 
|                        | KUAD(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                        | KTRR(FM) |      |     |         |             |         | Adult Contemporary      |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                        | KKQZ(FM) |      |     |         |             |         | Rock                    |         |        | M 25-54 |         |     |          |  |  |  |      |  | 
|                        | KKPL(FM) |      |     |         |             |         | Alternative             |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                        | KARS(FM) |      |     |         |             |         | Oldies                  |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Grand Rapids, MI        |          |      | 66  |         |             |         |                         |         |        |         |         |     | 3        |  |  |  | 14.4 | 
|                        | WLHT(FM) |      |     |         |             |         | Adult Contemporary      |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                        | WGRD(FM) |      |     |         |             |         | New Rock                |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                        | WTRV(FM) |      |     |         |             |         | Soft Adult Contemporary |         |        | W 35+   |         |     |          |  |  |  |      |  | 
|                        | WNWZ(AM) |      |     |         |             |         | Spanish                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                        | WFGR(FM) |      |     |         |             |         | Oldies                  |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Lafayette, LA           |          |      | 98  |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 26.9 | 
|                        | KPEL(FM) |      |     |         |             |         | Talk                    |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                        | KTDY(FM) |      |     |         |             |         | Adult Contemporary      |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                        | KRKA(FM) |      |     |         |             |         | Rhythmic CHR            |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                        | KFTE(FM) |      |     |         |             |         | Alternative             |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                        | KMDL(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                        | KPEL(AM) |      |     |         |             |         | Talk                    |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                        | KROF(AM) |      |     |         |             |         | Sports                  |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Owensboro, KY           |          |      | N/A |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | N/A  | 
|                        | WOMI(AM) |      |     |         |             |         | News/Talk               |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                        | WBKR(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|Peoria, IL              |          |      | 135 |         |             |         |                         |         |        |         |         |     | 2        |  |  |  | 27.0 | 
|                        | WVEL(AM) |      |     |         |             |         | Gospel                  |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                        | WGLO(FM) |      |     |         |             |         | Classic Rock            |         |        | M 25-54 |         |     |          |  |  |  |      |  | 
|                        | WIXO(FM) |      |     |         |             |         | Alternative             |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                        | WPIA(FM) |      |     |         |             |         | Contemporary Christian  |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                        | WVEL(FM) |      |     |         |             |         | Religious               |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                        | WFYR(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 

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|                     |          |      |     |         |             |         |                         |         |        |         |         |     |          |  |  |  |      |  | 
|-------------------- | -------- | ---- | --- | ------- | ----------- | ------- | ----------------------- | ------- | ------ | ------- | ------- | --- | -------- |  |  |  | ---- |  | 
|                     |          |      |     |         |             |         |                         | Station |        |         |        
|                     |          |      |     |         |             |         |                         | Cluster |        |         | Station |    
|                     |          |      |     |         |             |         |                         | Rank by |        |         | Cluster |    
|                     |          |      |     | Station |             | Primary |                         |         | Market |         |         | 12+ |         
|Radio Market/        |          | MSA  |     |         | Programming |         | Demographic             |         |        | Revenue |         |     | Audience | 
|Station Call Letters |          | Rank |     |         | Format      |         | Target                  |         |        | Share   |         |     | Share    | 
|                     |          |      |     |         |             |         |                         |         |        |         |         |     |          | 
|Redding, CA          |          |      | 215 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 40.3 | 
|                     | KSHA(FM) |      |     |         |             |         | Soft Adult Contemporary |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                     | KNNN(FM) |      |     |         |             |         | CHR                     |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                     | KRDG(FM) |      |     |         |             |         | Oldies                  |         |        | A 35-54 |         |     |          |  |  |  |      |  | 
|                     | KRRX(FM) |      |     |         |             |         | Rock                    |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                     | KNRO(AM) |      |     |         |             |         | ESPN                    |         |        | M 35+   |         |     |          |  |  |  |      |  | 
|                     | KQMS(AM) |      |     |         |             |         | News/Talk/Sports        |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|St. Cloud, MN        |          |      | 212 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 26.8 | 
|                     | KMXK(FM) |      |     |         |             |         | Adult Contemporary      |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                     | WWJO(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WJON(AM) |      |     |         |             |         | News/Talk               |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                     | KLZZ(FM) |      |     |         |             |         | Classic Rock            |         |        | M 25-54 |         |     |          |  |  |  |      |  | 
|                     | KKSR(FM) |      |     |         |             |         | Dance CHR               |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                     | KXSS(AM) |      |     |         |             |         | Adult Standards         |         |        | A 35-64 |         |     |          |  |  |  |      |  | 
|Utica-Rome, NY       |          |      | 151 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 35.0 | 
|                     | WODZ(FM) |      |     |         |             |         | Oldies                  |         |        | A 35-54 |         |     |          |  |  |  |      |  | 
|                     | WLZW(FM) |      |     |         |             |         | Adult Contemporary      |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                     | WFRG(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WIBX(AM) |      |     |         |             |         | News/Talk               |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Watertown, NY        |          |      | 257 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 41.0 | 
|                     | WCIZ(FM) |      |     |         |             |         | Classic Hits            |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WFRY(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WTNY(AM) |      |     |         |             |         | Talk                    |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                     | WNER(AM) |      |     |         |             |         | ESPN                    |         |        | M 35+   |         |     |          |  |  |  |      |  | 

Advertising Sales








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| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the supply of, and demand for, radio advertising time;                                                                                                                                                    
|
| |  | a stations share of audiences in the demographic groups
    targeted by advertisers, as measured by ratings surveys
    estimating the number of listeners tuned to the station at
    various times; and
|
| |  | the number of stations in the market competing for the same
    demographic groups.                                                                                                                       



Competition






Federal Regulation of Radio Broadcasting




8



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##### Table of Contents







Employees




Federal Regulation of Radio Broadcasting


Introduction.




| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | assigns frequency bands for broadcasting;                                                                                                               
|
| |  | determines the particular frequencies, locations, operating
    powers and other technical parameters of stations;                                      
|
| |  | issues, renews, revokes, conditions and modifies station
    licenses;                                                                                  
|
| |  | determines whether to approve changes in ownership or control of
    station licenses;                                                                  
|
| |  | regulates equipment used by stations; and                                                                                                               
|
| |  | adopts and implements regulations and policies that directly or
    indirectly affect the ownership, operation and employment
    practices of stations.



License Grant and Renewal.


9



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##### Table of Contents



KKSR-FM








|                |  |                      |  |       |    |  |         |  |     |           |  |            |           |  |     |         |           |  |  |  |          | 
|--------------- |  | -------------------- |  | ----- | -- |  | ------- |  | --- | --------- |  | ---------- | --------- |  | --- | ------- | --------- |  |  |  | -------- | 
|                |  |                      |  |       |    |  |         |  |     |           |  | Expiration |          
|                |  |                      |  |       |    |  |         |  |     |           |  | Date of    |          
|                |  |                      |  | FCC   |    |  | HAAT in |  |     | Power in  |  |            |           |  | FCC |        
|Market          |  | Station Call Letters |  | Class |    |  | Meters  |  |     | Kilowatts |  |            | Frequency |  |     | License |          
|                |  |                      |  |       |    |  |         |  |     |           |  |            |           |  |     |         |          
|Albany, NY      |  | WQBJ(FM)             |  |       | B  |  |         |  | 150 |           |  |            | 50.0      |  |     |         | 103.5 MHz |  |  |  | 06/01/06 | 
|                |  | WQBK(FM)             |  |       | A  |  |         |  | 92  |           |  |            | 6.0       |  |     |         | 103.9 MHz |  |  |  | 06/01/06 | 
|                |  | WABT(FM)             |  |       | A  |  |         |  | 107 |           |  |            | 5.0       |  |     |         | 104.5 MHz |  |  |  | 06/01/06 | 
|                |  | WGNA(FM)             |  |       | B  |  |         |  | 300 |           |  |            | 12.5      |  |     |         | 107.7 MHz |  |  |  | 06/01/06 | 
|                |  | WTMM(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 5.0       |  |     |         | 1300 kHz  |  |  |  | 06/01/06 | 
|Bloomington, IL |  | WJBC (AM)            |  |       | C  |  |         |  | N/A |           |  |            | 1.0       |  |     |         | 1230 kHz  |  |  |  | 12/01/12 | 
|                |  | WBNQ (FM)            |  |       | B  |  |         |  | 142 |           |  |            | 50.0      |  |     |         | 101.5 MHz |  |  |  | 12/01/12 | 
|                |  | WBWN (FM)            |  |       | B1 |  |         |  | 100 |           |  |            | 25.0      |  |     |         | 104.1 MHz |  |  |  | 12/01/12 | 
|                |  | WTRX (FM)            |  |       | B1 |  |         |  | 144 |           |  |            | 12.0      |  |     |         | 93.7 MHz  |  |  |  | 12/01/12 | 
|                |  | WJEZ (FM)            |  |       | A  |  |         |  | 149 |           |  |            | 1.3       |  |     |         | 98.9 MHz  |  |  |  | 12/01/12 | 
|Chico, CA       |  | KFMF(FM)             |  |       | B1 |  |         |  | 344 |           |  |            | 2.0       |  |     |         | 93.9 MHz  |  |  |  | 12/01/13 | 
|                |  | KQPT(FM)             |  |       | B  |  |         |  | 193 |           |  |            | 28.0      |  |     |         | 107.5 MHz |  |  |  | 12/01/13 | 
|                |  | KALF(FM)             |  |       | B  |  |         |  | 386 |           |  |            | 7.0       |  |     |         | 95.7 MHz  |  |  |  | 12/01/13 | 
|                |  | KZAP(FM)             |  |       | B1 |  |         |  | 393 |           |  |            | 1.5       |  |     |         | 96.7 MHz  |  |  |  | 12/01/13 | 

10



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##### Table of Contents



|                        |  |                      |  |       |    |  |         |  |     |           |  |            |             |  |     |         |           |  |  |  |          | 
|----------------------- |  | -------------------- |  | ----- | -- |  | ------- |  | --- | --------- |  | ---------- | ----------- |  | --- | ------- | --------- |  |  |  | -------- | 
|                        |  |                      |  |       |    |  |         |  |     |           |  | Expiration |            
|                        |  |                      |  |       |    |  |         |  |     |           |  | Date of    |            
|                        |  |                      |  | FCC   |    |  | HAAT in |  |     | Power in  |  |            |             |  | FCC |        
|Market                  |  | Station Call Letters |  | Class |    |  | Meters  |  |     | Kilowatts |  |            | Frequency   |  |     | License |          
|                        |  |                      |  |       |    |  |         |  |     |           |  |            |             |  |     |         |          
|El Paso, TX             |  | KSII(FM)             |  |       | C  |  |         |  | 433 |           |  |            | 100.0       |  |     |         | 93.1 MHz  |  |  |  | 08/01/13 | 
|                        |  | KLAQ(FM)             |  |       | C  |  |         |  | 424 |           |  |            | 100.0       |  |     |         | 95.5 MHz  |  |  |  | 08/01/13 | 
|                        |  | KROD(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 5.0         |  |     |         | 600 kHz   |  |  |  | 08/01/13 | 
|Evansville, IN          |  | WKDQ(FM)             |  |       | C  |  |         |  | 300 |           |  |            | 100.0       |  |     |         | 99.5 MHz  |  |  |  | 08/01/12 | 
|                        |  | WYNG(FM)             |  |       | B  |  |         |  | 128 |           |  |            | 50.0        |  |     |         | 94.9 MHz  |  |  |  | 12/01/12 | 
|                        |  | WDKS(FM)             |  |       | A  |  |         |  | 100 |           |  |            | 6.0         |  |     |         | 106.1 MHz |  |  |  | 08/01/12 | 
|                        |  | WJLT(FM)             |  |       | B  |  |         |  | 150 |           |  |            | 50.0        |  |     |         | 105.3 MHz |  |  |  | 08/01/12 | 
|                        |  | WGBF(FM)             |  |       | A  |  |         |  | 138 |           |  |            | 3.2         |  |     |         | 103.1 MHz |  |  |  | 08/01/12 | 
|                        |  | WGBF(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 5.0 daytime |  |     |         | 1280 kHz  |  |  |  | 08/01/12 | 
|                        |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night   |  |     |         |           |  |  |  |          | 
|Flint, MI               |  | WCRZ(FM)             |  |       | B  |  |         |  | 101 |           |  |            | 50.0        |  |     |         | 107.9 MHz |  |  |  | 10/01/12 | 
|                        |  | WWBN(FM)             |  |       | A  |  |         |  | 149 |           |  |            | 1.8         |  |     |         | 101.5 MHz |  |  |  | 10/01/12 | 
|                        |  | WFNT(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 5.0 daytime |  |     |         | 1470 kHz  |  |  |  | 10/01/12 | 
|                        |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night   |  |     |         |           |  |  |  |          | 
|                        |  | WRCL(FM)             |  |       | A  |  |         |  | 133 |           |  |            | 3.5         |  |     |         | 93.7 MHz  |  |  |  | 10/01/12 | 
|                        |  | WQUS(FM)             |  |       | A  |  |         |  | 91  |           |  |            | 3.0         |  |     |         | 103.1 MHz |  |  |  | 10/01/12 | 
|                        |  | WLSP(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 5.0 daytime |  |     |         | 1530 kHz  |  |  |  | 10/01/12 | 
|                        |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night   |  |     |         |           |  |  |  |          | 
|Ft. Collins-Greeley, CO |  | KUAD(FM)             |  |       | C1 |  |         |  | 212 |           |  |            | 100.0       |  |     |         | 99.1 MHz  |  |  |  | 04/01/13 | 
|                        |  | KTRR(FM)             |  |       | C2 |  |         |  | 125 |           |  |            | 50.0        |  |     |         | 102.5 MHz |  |  |  | 04/01/13 | 
|                        |  | KKQZ(FM)             |  |       | C3 |  |         |  | 168 |           |  |            | 8.7         |  |     |         | 94.3 MHz  |  |  |  | 04/01/13 | 
|                        |  | KKPL(FM)             |  |       | C2 |  |         |  | 150 |           |  |            | 50.0        |  |     |         | 99.9 MHz  |  |  |  | 10/01/13 | 
|                        |  | KARS(FM)             |  |       | C  |  |         |  | 372 |           |  |            | 100.0       |  |     |         | 102.9 MHz |  |  |  | 10/01/13 | 
|Grand Rapids, MI        |  | WLHT(FM)             |  |       | B  |  |         |  | 168 |           |  |            | 40.0        |  |     |         | 95.7 MHz  |  |  |  | 10/01/12 | 
|                        |  | WGRD(FM)             |  |       | B  |  |         |  | 180 |           |  |            | 13.0        |  |     |         | 97.9 MHz  |  |  |  | 10/01/12 | 
|                        |  | WTRV(FM)             |  |       | A  |  |         |  | 92  |           |  |            | 3.5         |  |     |         | 100.5 MHz |  |  |  | 10/01/12 | 
|                        |  | WNWZ(AM)             |  |       | D  |  |         |  | N/A |           |  |            | 1.0 daytime |  |     |         | 1410 kHz  |  |  |  | 10/01/12 | 
|                        |  |                      |  |       |    |  |         |  |     |           |  |            | .048 night  |  |     |         |           |  |  |  |          | 
|                        |  | WFGR(FM)             |  |       | A  |  |         |  | 150 |           |  |            | 2.75        |  |     |         | 98.7 MHz  |  |  |  | 10/01/12 | 
|Lafayette, LA           |  | KMDL(FM)             |  |       | C2 |  |         |  | 171 |           |  |            | 38.0        |  |     |         | 97.3 MHz  |  |  |  | 06/01/12 | 
|                        |  | KRKA(FM)             |  |       | C1 |  |         |  | 263 |           |  |            | 100.0       |  |     |         | 107.9 MHz |  |  |  | 06/01/12 | 
|                        |  | KFTE(FM)             |  |       | C2 |  |         |  | 163 |           |  |            | 42.0        |  |     |         | 96.5 MHz  |  |  |  | 06/01/12 | 
|                        |  | KTDY(FM)             |  |       | C  |  |         |  | 300 |           |  |            | 100.0       |  |     |         | 99.9 MHz  |  |  |  | 06/01/12 | 
|                        |  | KPEL(FM)             |  |       | C3 |  |         |  | 89  |           |  |            | 25.0        |  |     |         | 105.1 MHz |  |  |  | 06/01/12 | 
|                        |  | KPEL(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 1.0 daytime |  |     |         | 1420 kHz  |  |  |  | 06/01/12 | 
|                        |  |                      |  |       |    |  |         |  |     |           |  |            | 0.75 night  |  |     |         |           |  |  |  |          | 
|                        |  | KROF(AM)             |  |       | D  |  |         |  | N/A |           |  |            | 1.0 daytime |  |     |         | 960 kHz   |  |  |  | 06/01/12 | 
|                        |  |                      |  |       |    |  |         |  |     |           |  |            | .095 night  |  |     |         |           |  |  |  |          | 
|Owensboro, KY           |  | WOMI(AM)             |  |       | C  |  |         |  | N/A |           |  |            | 0.83        |  |     |         | 1490 kHz  |  |  |  | 08/01/12 | 
|                        |  | WBKR(FM)             |  |       | C  |  |         |  | 320 |           |  |            | 91.0        |  |     |         | 92.5 MHz  |  |  |  | 08/01/12 | 

11



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|               |  |                      |  |       |    |  |         |  |     |           |  |            |               |  |     |         |           |  |  |  |          | 
|-------------- |  | -------------------- |  | ----- | -- |  | ------- |  | --- | --------- |  | ---------- | ------------- |  | --- | ------- | --------- |  |  |  | -------- | 
|               |  |                      |  |       |    |  |         |  |     |           |  | Expiration |              
|               |  |                      |  |       |    |  |         |  |     |           |  | Date of    |              
|               |  |                      |  | FCC   |    |  | HAAT in |  |     | Power in  |  |            |               |  | FCC |        
|Market         |  | Station Call Letters |  | Class |    |  | Meters  |  |     | Kilowatts |  |            | Frequency     |  |     | License |          
|               |  |                      |  |       |    |  |         |  |     |           |  |            |               |  |     |         |          
|Peoria, IL     |  | WGLO(FM)             |  |       | B1 |  |         |  | 189 |           |  |            | 7.0           |  |     |         | 95.5 MHz  |  |  |  | 12/01/12 | 
|               |  | WVEL(FM)             |  |       | A  |  |         |  | 137 |           |  |            | 3.3           |  |     |         | 101.1 MHz |  |  |  | 12/01/12 | 
|               |  | WPIA(FM)             |  |       | A  |  |         |  | 100 |           |  |            | 6.0           |  |     |         | 98.5 MHz  |  |  |  | 12/01/12 | 
|               |  | WVEL(AM)             |  |       | D  |  |         |  | N/A |           |  |            | 5.0 daytime   |  |     |         | 1140 kHz  |  |  |  | 12/01/12 | 
|               |  | WFYR(FM)             |  |       | B1 |  |         |  | 103 |           |  |            | 23.5          |  |     |         | 97.3 MHz  |  |  |  | 12/01/12 | 
|               |  | WIXO(FM)             |  |       | A  |  |         |  | 178 |           |  |            | 1.5           |  |     |         | 99.9 MHz  |  |  |  | 12/01/12 | 
|Redding, CA    |  | KRRX(FM)             |  |       | C  |  |         |  | 600 |           |  |            | 100.0         |  |     |         | 106.1 MHz |  |  |  | Pending  | 
|               |  | KNNN(FM)             |  |       | C2 |  |         |  | 465 |           |  |            | 1.6           |  |     |         | 99.3 MHz  |  |  |  | 12/01/13 | 
|               |  | KQMS(AM)             |  |       | C  |  |         |  | N/A |           |  |            | 1.0           |  |     |         | 1400 kHz  |  |  |  | 12/01/13 | 
|               |  | KSHA(FM)             |  |       | C  |  |         |  | 475 |           |  |            | 100.0         |  |     |         | 104.3 MHz |  |  |  | 12/01/13 | 
|               |  | KRDG(FM)             |  |       | C1 |  |         |  | 379 |           |  |            | 28.0          |  |     |         | 105.3 MHz |  |  |  | 12/01/13 | 
|               |  | KNRO(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 10.0  daytime |  |     |         | 1670 kHz  |  |  |  | Pending  | 
|               |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night     |  |     |         |           |  |  |  |          | 
|St. Cloud, MN  |  | KMXK(FM)             |  |       | C2 |  |         |  | 150 |           |  |            | 50.0          |  |     |         | 94.9 MHz  |  |  |  | 04/01/13 | 
|               |  | WJON(AM)             |  |       | C  |  |         |  | N/A |           |  |            | 1.0           |  |     |         | 1240 kHz  |  |  |  | 04/01/13 | 
|               |  | WWJO(FM)             |  |       | C  |  |         |  | 305 |           |  |            | 100.0         |  |     |         | 98.1 MHz  |  |  |  | 04/01/13 | 
|               |  | KKSR(FM)             |  |       | C2 |  |         |  | 138 |           |  |            | 50.0          |  |     |         | 96.7 MHz  |  |  |  | Pending  | 
|               |  | KLZZ(FM)             |  |       | C3 |  |         |  | 126 |           |  |            | 9.0           |  |     |         | 103.7 MHz |  |  |  | 04/01/13 | 
|               |  | KXSS(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 2.5 daytime   |  |     |         | 1390 kHz  |  |  |  | 04/01/13 | 
|               |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night     |  |     |         |           |  |  |  |          | 
|Utica-Rome, NY |  | WODZ(FM)             |  |       | B1 |  |         |  | 184 |           |  |            | 7.4           |  |     |         | 96.1 MHz  |  |  |  | 06/01/06 | 
|               |  | WLZW(FM)             |  |       | B  |  |         |  | 201 |           |  |            | 25.0          |  |     |         | 98.7 MHz  |  |  |  | 06/01/06 | 
|               |  | WFRG(FM)             |  |       | B  |  |         |  | 151 |           |  |            | 100.0         |  |     |         | 104.3 MHz |  |  |  | 06/01/06 | 
|               |  | WIBX(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 5.0           |  |     |         | 950 kHz   |  |  |  | 06/01/06 | 
|Watertown, NY  |  | WCIZ(FM)             |  |       | A  |  |         |  | 100 |           |  |            | 6.0           |  |     |         | 93.3 MHz  |  |  |  | 06/01/06 | 
|               |  | WFRY(FM)             |  |       | C1 |  |         |  | 145 |           |  |            | 100.0         |  |     |         | 97.5 MHz  |  |  |  | 06/01/06 | 
|               |  | WTNY(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 1.0           |  |     |         | 790 kHz   |  |  |  | 06/01/06 | 
|               |  | WNER(AM)             |  |       | D  |  |         |  | N/A |           |  |            | 3.5 daytime   |  |     |         | 1410 kHz  |  |  |  | 06/01/06 | 
|               |  |                      |  |       |    |  |         |  |     |           |  |            | 0.058 night   |  |     |         |           |  |  |  |          | 

Transfers or Assignment of Licenses.




| |   |                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------
| |  | compliance with the various rules limiting common ownership of
    media properties in a given market;                                        
|
| |  | the character of the licensee and those persons holding
    attributable interests in the licensee; and                                       
|
| |  | compliance with the Communications Acts limitations on
    alien ownership as well as compliance with other FCC regulations
    and policies.



12



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##### Table of Contents





Multiple Ownership Rules.




| |   |                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in markets with 45 or more radio stations, ownership is limited
    to eight commercial stations, no more than five of which can be
    either AM or FM;                                                                         
|
| |  | in markets with 30 to 44 radio stations, ownership is limited to
    seven commercial stations, no more than four of which can be
    either AM or FM;                                                                           
|
| |  | in markets with 15 to 29 radio stations, ownership is limited to
    six commercial stations, no more than four of which can be
    either AM or FM; and                                                                         
|
| |  | in markets with 14 or fewer radio stations, ownership is limited
    to five commercial stations or no more than 50.0% of the
    markets total, whichever is lower, and no more than three
    of which can be either AM or FM.







| |   |                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in markets where 20 media voices will remain after the
    consummation of the proposed transaction, an owner may own an
    additional five radio stations, or, if the owner only has one
    television station, an additional six radio stations; and
|
| |  | in markets where ten media voices will remain after the
    consummation of the proposed transaction, an owner may own an
    additional three radio stations.                                                                                          



13



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##### Table of Contents











Alien Ownership Rules.


Time Brokerage.


14



---



##### Table of Contents



AM-AM




Programming and Operation.








Proposed and Recent Changes.


15



---



##### Table of Contents







| |   |                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------
| |  | proposals to impose regulatory, spectrum use or other fees on
    FCC licensees;                                                
|
| |  | proposals to impose streaming fees for radio;                                                                                   
|
| |  | changes to foreign ownership rules for broadcast licenses;                                                                      
|
| |  | revisions to political broadcasting rules, including
    requirements that broadcasters provide free air time to
    candidates;
|
| |  | technical and frequency allocation matters;                                                                                     
|
| |  | proposals to restrict or prohibit the advertising of beer, wine
    and other alcoholic beverages;                              
|
| |  | further changes in the FCCs attribution and multiple
    ownership policies;                                                   
|
| |  | changes to broadcast technical requirements; and                                                                                
|
| |  | proposals to limit the tax deductibility of advertising expenses
    by advertisers.                                            

tm tm tm tm






Federal Antitrust Considerations.


30-day 30-day


16



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www.regentcomm.com 10-K, 10-Q, 8-K, http://www.sec.gov







|         |              
|-------- | -------------
|Item 1A. | Risk Factors.



| |                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------
| | We Face Many Unpredictable Business Risks That Could Have
    a Material Adverse Effect on Our Future Operations.





| |   |                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | changing economic conditions, both generally and relative to the
    radio broadcasting industry;                                                                                                                              
|
| |  | shifts in population, listenership, demographics, or audience
    tastes;                                                                                                                                                      
|
| |  | the level of competition for advertising revenues with other
    radio stations, satellite radio, television stations,
    newspapers, Internet-based media, and other communications media;                                   
|
| |  | technological changes and innovations; and                                                                                                                                                                                     
|
| |  | changes in governmental regulations and policies and actions of
    federal regulatory bodies, including the U.S. Department of
    Justice, the Federal Trade Commission, and the Federal
    Communications Commission (FCC).



17



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##### Table of Contents





| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | An Economic Downturn in Any of Our Significant Markets
    Could Adversely Affect Our Revenue and Cash Flow.





| |                                                                                    
| | -----------------------------------------------------------------------------------
| | We May Be Adversely Affected By a General Deterioration in
    Economic Conditions.





| |                                                                    
| | -------------------------------------------------------------------
| | We Have Substantial Indebtedness and Debt Service
    Requirements.





| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a substantial portion of our cash flow is, and will be,
    dedicated to debt service and is not, and will not be, available
    for other purposes;                                                                                  
|
| |  | our ability to obtain additional financing for working capital,
    capital expenditures, acquisitions and general corporate or
    other purposes may be impaired in the future;                                                     
|
| |  | certain of our borrowings are, and will be, at variable rates of
    interest, which may expose us to the risk of increases in
    interest rates; and                                                                                
|
| |  | our level of indebtedness could make us more vulnerable to
    economic downturns, limit our ability to withstand competitive
    pressures and reduce our flexibility in responding to changing
    business and economic conditions.





| |                                                                           
| | --------------------------------------------------------------------------
| | Our Debt Covenants Restrict Our Financial and Operational
    Flexibility.



18



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##### Table of Contents





| |                                                
| | -----------------------------------------------
| | Our Acquisition Strategy May Not Be Successful.





| |   |                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------
| |  | increase in prices for radio stations due to increased
    competition for acquisition opportunities;                         
|
| |  | reduction in the number of suitable acquisition targets
    resulting from continued industry consolidation;                  
|
| |  | inability to negotiate definitive purchase agreements on
    satisfactory terms;                                              
|
| |  | inability to obtain additional financing;                                                                                     
|
| |  | inability to sell any non-performing station; and                                                                             
|
| |  | failure or unanticipated delays in completing acquisitions due
    to difficulties in obtaining required regulatory approvals.





| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | We Could Experience Delays in Expanding our Business Due
    to Antitrust Laws and Other Regulatory Considerations.





| |                                                                 
| | ----------------------------------------------------------------
| | We Are Subject to Extensive and Changing Federal
    Regulation.



10-K).




| |                                                                           
| | --------------------------------------------------------------------------
| | We May Lose Audience Share and Advertising Revenue Due to
    Competition.



19



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| |                                                                                                     
| | ----------------------------------------------------------------------------------------------------
| | We Are Subject to Competition From New Technologies That
    May Affect Our Broadcasting Operations.





| |   |                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | satellite-delivered digital audio radio service, which has
    resulted in the introduction of new subscriber-based satellite
    radio services with numerous niche formats;                
|
| |  | audio programming by cable systems, direct-broadcast satellite
    systems, personal communications systems, Internet content
    providers and other digital audio broadcast formats;       
|
| |  | in-band on-channel digital radio, which provides multi-channel,
    multi-format digital radio services in the same bandwidth
    currently occupied by traditional AM and FM radio services;
|
| |  | low-powered FM radio, which could result in additional FM radio
    broadcast outlets; and                                                                                                   
|
| |  | MP3 players and other personal audio systems that create new
    ways for individuals to listen to music and other content of
    their own choosing.                                        





| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | We May Not Be Able to Obtain Sufficient Additional
    Financing for Future Acquisitions.





| |                                                
| | -----------------------------------------------
| | We May Be Unable to Integrate Our Acquisitions.





| |                           
| | --------------------------
| | We May Lose Key Personnel.



20



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| |                                                                           
| | --------------------------------------------------------------------------
| | We May Incur Future Losses Due to Impairment of Our
    Intangible Assets.





| |                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------
| | We Have Established Certain Anti-takeover Measures That
    Could Prevent an Acquisition or Change of Control of Our
    Company.





| |   |                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | permit the Board of Directors to increase its own size and fill
    the resulting vacancies;                                                                                                          
|
| |  | permit the Board of Directors, without stockholder approval, to
    issue preferred stock with such dividend, liquidation,
    conversion, voting and other rights as the Board may
    determine; and
|
| |  | limit the persons who may call special meetings of stockholders.                                                                                                                                      





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|         |                           
|-------- | --------------------------
|Item 1B. | Unresolved Staff Comments.








|        |            
|------- | -----------
|Item 2. | Properties.












|        |                   
|------- | ------------------
|Item 3. | Legal Proceedings.










|        |                                                         
|------- | --------------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security
    Holders.



22



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##### Table of Contents






PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities.



|               |  |      |      |  |     |   |      | 
|-------------- |  | ---- | ---- |  | --- | - | ---- | 
|               |  | High |      |  | Low |  
|               |  |      |      |  |     |  
|2005           |  |      |      |  |     |   |      | 
|First quarter  |  | $    | 5.86 |  |     | $ | 4.88 | 
|Second quarter |  | $    | 6.30 |  |     | $ | 5.07 | 
|Third quarter  |  | $    | 6.39 |  |     | $ | 4.99 | 
|Fourth quarter |  | $    | 5.45 |  |     | $ | 4.42 | 
|2004           |  |      |      |  |     |   |      | 
|First quarter  |  | $    | 7.60 |  |     | $ | 5.99 | 
|Second quarter |  | $    | 7.25 |  |     | $ | 5.40 | 
|Third quarter  |  | $    | 6.29 |  |     | $ | 5.43 | 
|Fourth quarter |  | $    | 5.95 |  |     | $ | 4.97 | 







|                                     |  |           |         |  |                |   |                  |                     |  |                 |                   |  |  |   |        | 
|------------------------------------ |  | --------- | ------- |  | -------------- | - | ---------------- | ------------------- |  | --------------- | ----------------- |  |  | - | ------ | 
|                                     |  |           |         |  |                |   |                  | Approximate         | 
|                                     |  | Total     |         |  |                |   | Total Number of  |                     |  | Dollar Value of |                  
|                                     |  | Number of |         |  |                |   | Shares Purchased |                     |  | Shares that May |                  
|                                     |  | Shares    |         |  | Average Price  |   |                  | as Part of Publicly |  |                 | Yet be Purchased  | 
|Period                               |  | Purchased |         |  | Paid per Share |   |                  | Announced Plan(1)   |  |                 | under the Plan(1) | 
|                                     |  |           |         |  |                |   |                  |                     |  |                 |                   | 
|                                     |  |           |         |  |                |   |                  | (in thousands)      | 
|October 1, 2005  October 31, 2005   |  |           | 121,521 |  |                | $ | 5.04             |                     |  |                 | 121,521           |  |  | $ | 19,299 | 
|November 1, 2005  November 30, 2005 |  |           | 82,015  |  |                | $ | 5.04             |                     |  |                 | 82,015            |  |  | $ | 18,886 | 
|December 1, 2005  December 31, 2005 |  |           | 23,700  |  |                | $ | 4.52             |                     |  |                 | 23,700            |  |  | $ | 18,779 | 
|Total                                |  |           | 227,236 |  |                | $ | 4.98             |                     |  |                 | 227,236           |  |  | $ | 18,779 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | On June 1, 2000, Regents Board of Directors approved
    a stock buyback program for an initial amount of
    $10.0 million, which authorized the Company to repurchase
    shares of its common stock at certain market price levels.
    Through October 2002, the Company repurchased approximately
    $6.7 million of its common stock under the program, which
    amount the Board later replenished under the program at their
    October 2002 meeting. As of July 31, 2004, the Company had
    expended the entire $16.7 million authorized under the
    plan. At its July 2004 meeting, the Companys Board of
    Directors replenished the amount authorized under the repurchase
    program by an additional $20.0 million. In December 2004,
    we completed an amendment of our credit facility that provided
    us with more favorable pricing and increased the amount of our
    stock that we were able to buy back, subject to certain
    conditions, by $40.0 million, twice the amount then
    approved by our Board of Directors. The entire
    $20.0 million of additional repurchase

23



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | capacity under the program was expended during the second
    quarter of 2005. At its July 2005 meeting, the Companys
    Board of Directors again replenished Regents stock buyback
    program by authorizing the Company to expend up to
    $20.0 million more for stock repurchases. Effective
    July 26, 2005, the Company modified its credit facility to,
    among other things, permit Regent to use up to
    $50.0 million in cash to repurchase shares of its common
    stock. Since the July 2005 replenishment of the stock buyback
    program, the Company has repurchased 245,468 shares of its
    common stock for approximately $1.2 million. Of this
    amount, 227,236 shares were repurchased during the fourth
    quarter of 2005 for approximately $1.1 million.



24



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|        |                         
|------- | ------------------------
|Item 6. | Selected Financial Data.



SELECTED CONSOLIDATED FINANCIAL DATA


(In thousands, except per share data)


|                                                                                                            |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |        | 
|----------------------------------------------------------------------------------------------------------- | -------------------- | ----------------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ |  | ---- | ------ | ------ |  | - | ------ | ------ | 
|                                                                                                            |                      | Year Ended December 31, |       
|                                                                                                            |                      |                         |       
|                                                                                                            |                      | 2005                    |        |        | 2004 |   |        | 2003   |  |   | 2002   |        |  | 2001 |       
|                                                                                                            |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |       
|OPERATING
    RESULTS(1)(3):                                                                                |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |       
|Net broadcast revenues                                                                                      |                      | $                       | 85,600 |        |      | $ | 84,187 |        |  | $ | 73,161 |        |  | $    | 64,606 |        |  | $ | 50,995 |       
|Operating (loss) income                                                                                     |                      |                         | (6,286 | )      |      |   | 14,767 |        |  |   | 11,866 |        |  |      | 8,526  |        |  |   | (3,025 | )     
|(Loss) income from continuing operations before income taxes and
    cumulative effect of accounting change |                      |                         | (9,939 | )      |      |   | 11,008 |        |  |   | 8,312  |        |  |      | 6,058  |        |  |   | (2,163 | )     
|Net (loss) income from continuing operations before cumulative
    effect of accounting change              |                      |                         | (6,621 | )      |      |   | 6,443  |        |  |   | 4,882  |        |  |      | (822   | )      |  |   | (1,558 | )     
|Net (loss) income from discontinued operations                                                              |                      |                         | (18    | )      |      |   | 6,792  |        |  |   | 824    |        |  |      | 480    |        |  |   | (155   | )     
|Cumulative effect of accounting change, net of income taxes                                                 |                      |                         |       |        |      |   |       |        |  |   |       |        |  |      | (6,138 | )      |  |   |       |       
|(Loss) income from continuing operations applicable to common
    shares                                    |                      |                         | (6,621 | )      |      |   | 6,443  |        |  |   | 4,882  |        |  |      | (822   | )      |  |   | (1,558 | )     
|(Loss) income from discontinued operations applicable to common
    shares                                  |                      |                         | (18    | )      |      |   | 6,792  |        |  |   | 824    |        |  |      | 480    |        |  |   | (155   | )     
|Net (loss) income                                                                                           |                      | $                       | (6,639 | )      |      | $ | 13,235 |        |  | $ | 5,706  |        |  | $    | (6,480 | )      |  | $ | (1,713 | )     
|NET (LOSS) INCOME PER COMMON SHARE:                                                                         |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |       
|Basic:                                                                                                      |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |       
|(Loss) income from continuing operations before cumulative
    effect of accounting change                  |                      | $                       | (0.15  | )      |      | $ | 0.14   |        |  | $ | 0.10   |        |  | $    | (0.02  | )      |  | $ | (0.05  | )     
|(Loss) income from discontinued operations                                                                  |                      |                         |       |        |      |   | 0.15   |        |  |   | 0.02   |        |  |      | 0.01   |        |  |   |       |       
|Cumulative effect of accounting change                                                                      |                      |                         |       |        |      |   |       |        |  |   |       |        |  |      | (0.14  | )      |  |   |       |       
|                                                                                                            |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |       
|Net (loss) income                                                                                           |                      | $                       | (0.15  | )      |      | $ | 0.29   |        |  | $ | 0.12   |        |  | $    | (0.15  | )      |  | $ | (0.05  | )     
|                                                                                                            |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |       
|Weighted average number of common shares used in calculation                                                |                      |                         | 43,214 |        |      |   | 45,780 |        |  |   | 46,515 |        |  |      | 43,177 |        |  |   | 34,218 |       
|Diluted:                                                                                                    |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |       
|(Loss) income from continuing operations before cumulative
    effect of accounting change                  |                      | $                       | (0.15  | )      |      | $ | 0.14   |        |  | $ | 0.10   |        |  | $    | (0.02  | )      |  | $ | (0.05  | )     
|(Loss) income from discontinued operations                                                                  |                      |                         |       |        |      |   | 0.15   |        |  |   | 0.02   |        |  |      | 0.01   |        |  |   |       |       
|Cumulative effect of accounting change                                                                      |                      |                         |       |        |      |   |       |        |  |   |       |        |  |      | (0.14  | )      |  |   |       |       
|                                                                                                            |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |       
|Net (loss) income                                                                                           |                      | $                       | (0.15  | )      |      | $ | 0.29   |        |  | $ | 0.12   |        |  | $    | (0.15  | )      |  | $ | (0.05  | )     
|                                                                                                            |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |       
|Weighted average number of common shares used in calculation:                                               |                      |                         |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |        |       
|                                                                                                            | Fully
    diluted(2) |                         |        | 43,214 |      |   |        | 46,164 |  |   |        | 46,837 |  |      |        | 43,177 |  |   |        | 34,218 | 

25



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|                                                        |  |              |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|------------------------------------------------------- |  | ------------ | ------- |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                                                        |  | December 31, |        
|                                                        |  |              |        
|                                                        |  | 2005         |         |  | 2004 |   |         | 2003 |  |   | 2002    |  |  | 2001 |        
|                                                        |  |              |         |  |      |   |         |      |  |   |         |  |  |      |        
|BALANCE SHEET
    DATA(1)(3):                           |  |              |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|Current assets                                          |  | $            | 16,053  |  |      | $ | 16,218  |      |  | $ | 16,068  |  |  | $    | 16,984  |  |  | $ | 12,179  | 
|Total assets                                            |  |              | 374,481 |  |      |   | 397,361 |      |  |   | 373,301 |  |  |      | 308,030 |  |  |   | 306,356 | 
|Current liabilities                                     |  |              | 12,441  |  |      |   | 11,625  |      |  |   | 7,958   |  |  |      | 7,948   |  |  |   | 6,054   | 
|Long-term debt and capital leases, less current portion |  |              | 78,349  |  |      |   | 72,560  |      |  |   | 67,714  |  |  |      | 11,449  |  |  |   | 87,094  | 
|Total stockholders equity                              |  | $            | 262,056 |  |      | $ | 288,826 |      |  | $ | 283,798 |  |  | $    | 278,490 |  |  | $ | 208,338 | 






|    |                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Acquisitions in 2004, 2003, 2002 and 2001 affect comparability
    among years (see Note 2 in Notes to Consolidated Financial
    Statements, as well as our prior Annual Reports on
    Form 10-K).                                          
|   
|(2) | Shares for fully diluted are the same as basic in years 2005,
    2002 and 2001 as the effect of outstanding common stock options
    and warrants was anti-dilutive in those years.                                                          
|   
|(3) | Impairment of indefinite-lived intangible assets recorded in
    2005 and 2002 will affect comparability among years (see
    Note 8 in Notes to Consolidated Financial Statements, as
    well as our prior Annual Reports on
    Form 10-K).






|        |                                                                                           
|------- | ------------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations.

Overview




| |                                                               
| | --------------------------------------------------------------
| | Cautionary Statement Concerning Forward-Looking
    Statements

10-K


10-K 10-K http://www.sec.gov 10-K.




| |                   
| | ------------------
| | Executive Overview



26



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27



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WQBK-FM WQBJ-FM,


KTRR-FM KUAD-FM




| |                             
| | ----------------------------
| | Critical Accounting Policies



28



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Revenue recognition  We recognize revenue from
    the sale of commercial broadcast time to advertisers when the
    commercials are broadcast, subject to meeting certain conditions
    such as pervasive evidence that an arrangement exists, the price
    is fixed and determinable, and collection is reasonably assured.
    These criteria are generally met at the time an advertisement is
    broadcast, and the revenue is recorded net of advertising agency
    commission.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | Goodwill and Indefinite-Lived Intangible
    Assets  Our FCC licenses qualify as
    indefinite-lived intangible assets, and represent a significant
    portion of the assets on our balance sheet. We utilize the
    Greenfield Methodology for valuation of our FCC licenses, which
    allocates a start-up
    value to each station and employs a discounted cash flow
    methodology and accepted appraisal techniques and Internal
    Revenue Service guidelines. To test goodwill, we utilize a
    market multiple approach at the reporting unit level. Local
    economic conditions in each of our markets could impact whether
    an FCC license or goodwill is impaired, as a decrease or
    increase in market revenue could negatively or positively impact
    discounted cash flows. Additionally, other factors such as
    interest rates, the performance of the S&P 500, cash flow
    multiples as well as capital expenditures, can affect the
    discounted cash flow analysis. To the extent that the carrying
    value exceeds the fair value of the assets, an impairment loss
    will be recorded in operating income.                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | Allocation of Acquisition Purchase Price  We
    believe the determination of the fair value of our acquired FCC
    licenses is a critical accounting policy as their value is
    significant relative to our total assets. We typically engage
    independent third parties to appraise the fair value of our
    acquired tangible and intangible assets; however, in some
    instances we apply our own direct valuation methods to determine
    the value of tangible assets, FCC licenses, and other intangible
    assets. The FCC license valuation utilized employs a discounted
    cash flow analysis with critical assumptions about market
    growth, cash flow growth, multiples of cash flow, and other
    economic factors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | Determining the Recoverability of Long-Lived
    Assets  Our long-lived assets to be held and used
    (fixed assets and definite-lived intangible assets) are reviewed
    for impairment whenever events or circumstances indicate that
    the carrying amount may not be recoverable. The carrying amount
    of a long-lived asset is not recoverable if it exceeds the sum
    of the undiscounted cash flows expected to result from the use
    and eventual disposal of the asset. If we were to determine that
    the carrying amount of an asset was not recoverable, we would
    record an impairment loss for the difference between the
    carrying amount and the fair value of the asset. We determine
    the fair value of our long-lived assets based upon the market
    value of similar assets, if available, or independent
    appraisals, if necessary. Long-lived assets to be disposed of
    and/or held for sale are reported at the lower of carrying
    amount or fair value, less cost to sell. We determine the fair
    value of these assets in the same manner as described for assets
    held and used. The amount of intangible assets with definite
    lives that we have recorded is not material.                                                                                                                                                                                                                                                                                                                                                            
|
| | Deferred Tax Assets  At December 31,
    2005, we had current and long-term deferred tax assets of
    approximately $20.1 million before valuation allowance, the
    primary component of which is our net operating loss
    carryforwards. While we have a valuation allowance of
    approximately $3.3 million set up for tax assets expiring
    through 2016, we have determined that it is not necessary to
    record a valuation allowance against our net operating loss
    carryforwards that expire in years 2017 through 2025, based on
    estimated future taxable income during those years. Our
    estimated future taxable income in those periods takes into
    consideration the anticipated future run-off of significant tax
    amortization related to existing FCC licenses and tax-deductible
    goodwill by 2016. However, there is no assurance that our
    projections will be achieved, and if our taxable income
    projections fall short, we most likely would need to record an
    additional valuation allowance against the deferred tax assets
    that would not be utilized. The need to record an additional
    valuation allowance against our deferred tax assets is reviewed
    quarterly, and if we were to determine that we would be unable
    to realize a portion, or the remainder of the deferred tax
    assets in the future, an adjustment to the deferred tax assets
    would be recorded as expense in the period such determination
    was made. Additionally, if it were determined that we would be
    able to utilize a portion of

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the net operating loss carryforwards that are currently reduced
    by a valuation allowance, an adjustment to the valuation
    allowance would be recorded as a reduction to income tax
    expense. If our provisions for current or deferred taxes are not
    adequate due to unfavorable law changes or unforeseen
    circumstances, we could experience losses in excess of the
    current or deferred income tax provisions we have established.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | Allowance for Doubtful Accounts  We maintain
    an allowance for doubtful accounts for estimated losses
    resulting from the inability of our customers to make required
    payments. We routinely review customer account activity in order
    to assess the adequacy of the allowances provided for potential
    losses. Based on historical information, we believe that our
    allowance is adequate. However, changes in general economic,
    business and market conditions could affect the ability of our
    customers to make their required payments; therefore, the
    allowance for doubtful accounts is reviewed monthly and changes
    to the allowance are updated as new information is received. A
    one percent change to our allowance as a percent of our
    outstanding accounts receivable at December 31, 2005 would
    cause a decrease in net income of approximately
    $0.1 million, net of tax.



| |                                                    
| | ---------------------------------------------------
| | Effect of Recently Issued Accounting Pronouncements





30



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05-6, 05-6). 05-6 05-6 05-6




Results of Operations






31



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| |                      
| | ---------------------
| | 2005 Compared to 2004





| |                       
| | ----------------------
| | Net Broadcast Revenues





|                                |  |                  |       |   |       |  |       |   
|------------------------------- |  | ---------------- | ----- | - | ----- |  | ----- | --
|                                |  | Net Broadcast    |      
|                                |  | Revenue Variance |      
|                                |  | Favorable        |      
|                                |  | (Unfavorable)    |      
|                                |  |                  |      
|Net Broadcast Revenue Variance: |  | $ Chg            |       |   | % Chg | 
|                                |  |                  |       |   |       | 
|Local advertising               |  | $                | 1,500 |   |       |  | 2.2   | % 
|National advertising            |  |                  | 624   |   |       |  | 6.0   | % 
|Political advertising           |  |                  | (705  | ) |       |  | (69.7 | )%
|Barter revenue                  |  |                  | (73   | ) |       |  | (1.9  | )%
|Other                           |  |                  | 67    |   |       |  | 4.2   | % 
|                                |  |                  |       |   |       | 
|Net broadcast revenue variance  |  | $                | 1,413 |   |       |  | 1.7   | % 
|                                |  |                  |       |   |       | 



32



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| |                           
| | --------------------------
| | Station Operating Expenses



|                                         |  |                   |        |   |       |  |      |   
|---------------------------------------- |  | ----------------- | ------ | - | ----- |  | ---- | --
|                                         |  | Station Operating |       
|                                         |  | Expense Variance  |       
|                                         |  | Favorable         |       
|                                         |  | (Unfavorable)     |       
|                                         |  |                   |       
|Station Operating Expense Variance:      |  | $ Chg             |        |   | % Chg | 
|                                         |  |                   |        |   |       | 
|Technical expense                        |  | $                 | 19     |   |       |  | 0.6  | % 
|Programming expense                      |  |                   | (814   | ) |       |  | (4.6 | )%
|Promotion expense                        |  |                   | (218   | ) |       |  | (6.9 | )%
|Sales expense                            |  |                   | (398   | ) |       |  | (2.3 | )%
|Administrative expense                   |  |                   | (646   | ) |       |  | (5.1 | )%
|Barter expense                           |  |                   | 3      |   |       |  | 0.1  | % 
|                                         |  |                   |        |   |       | 
|Total station operating expense variance |  | $                 | (2,054 | ) |       |  | (3.7 | )%
|                                         |  |                   |        |   |       | 





| |                              
| | -----------------------------
| | Depreciation and Amortization





| |                  
| | -----------------
| | Corporate Expense





| |                                                 
| | ------------------------------------------------
| | Impairment of Indefinite-Lived Intangible Assets





| |                 
| | ----------------
| | Interest Expense



33



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| |                            
| | ---------------------------
| | Other Income (Expense), Net

KTRR-FM KUAD-FM KTRR-FM




| |             
| | ------------
| | Income Taxes









| |                        
| | -----------------------
| | Discontinued Operations



34



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|                                      |  |      |     |   |      |   |         |  
|------------------------------------- |  | ---- | --- | - | ---- | - | ------- | -
|                                      |  | 2005 |     |   | 2004 |  
|                                      |  |      |     |   |      |  
|Net broadcast revenue                 |  | $    |    |   |      | $ | 432     |  
|Station operating expense             |  |      | 18  |   |      |   | 440     |  
|Depreciation and amortization expense |  |      |    |   |      |   | 292     |  
|Allocated interest expense            |  |      |    |   |      |   | 111     |  
|Other expense (income), net           |  |      | 9   |   |      |   | (11,625 | )
|                                      |  |      |     |   |      |  
|(Loss) income before income taxes     |  |      | (27 | ) |      |   | 11,214  |  
|Income tax benefit (expense)          |  |      | 9   |   |      |   | (4,422  | )
|                                      |  |      |     |   |      |  
|Net (loss) income                     |  | $    | (18 | ) |      | $ | 6,792   |  
|                                      |  |      |     |   |      |  



| |                     
| | --------------------
| | Same Station Results

quarter-to




|                                          |                             |         |        |  |         |   |        |        |  |  |     |   | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | - | 
|                                          |                             | 2005    |        |  | 2004    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 1                                 |                             |         |        |  |         |   |        |        |  |  |     |  
|                                          | (68 stations in 14 markets) |         |        |  |         |   |        |        |  |  |     |   | 
|Net broadcast revenue                     |                             | $       | 18,621 |  |         | $ | 17,394 |        |  |  |     |  
|Less remaining stations and barter effect |                             |         | 2,403  |  |         |   | 2,007  |        |  |  |     |  
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 16,218 |  |         | $ | 15,387 |        |  |  | 5.4 | %
|                                          |                             |         |        |  |         |   |        |        | 



35



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|                                          |                             |         |        |  |         |   |        |        |  |  |     |   | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | - | 
|                                          |                             | 2005    |        |  | 2004    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 2                                 |                             |         |        |  |         |   |        |        |  |  |     |  
|                                          | (68 stations in 14 markets) |         |        |  |         |   |        |        |  |  |     |   | 
|Net broadcast revenue                     |                             | $       | 22,728 |  |         | $ | 22,227 |        |  |  |     |  
|Less remaining stations and barter effect |                             |         | 2,714  |  |         |   | 2,882  |        |  |  |     |  
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 20,014 |  |         | $ | 19,345 |        |  |  | 3.5 | %
|                                          |                             |         |        |  |         |   |        |        | 



|                                          |                             |         |        |  |         |   |        |        |  |  |     |   | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | - | 
|                                          |                             | 2005    |        |  | 2004    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 3                                 |                             |         |        |  |         |   |        |        |  |  |     |  
|                                          | (68 stations in 14 markets) |         |        |  |         |   |        |        |  |  |     |   | 
|Net broadcast revenue                     |                             | $       | 22,931 |  |         | $ | 22,454 |        |  |  |     |  
|Less remaining stations and barter effect |                             |         | 2,782  |  |         |   | 3,011  |        |  |  |     |  
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 20,149 |  |         | $ | 19,443 |        |  |  | 3.6 | %
|                                          |                             |         |        |  |         |   |        |        | 



|                                          |                             |         |        |  |         |   |        |        |  |  |      |    | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | ---- | -- | 
|                                          |                             | 2005    |        |  | 2004    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 4                                 |                             |         |        |  |         |   |        |        |  |  |      |   
|                                          | (73 stations in 15 markets) |         |        |  |         |   |        |        |  |  |      |    | 
|Net broadcast revenue                     |                             | $       | 21,320 |  |         | $ | 22,112 |        |  |  |      |   
|Less remaining stations and barter effect |                             |         | 1,166  |  |         |   | 976    |        |  |  |      |   
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 20,154 |  |         | $ | 21,136 |        |  |  | (4.6 | )%
|                                          |                             |         |        |  |         |   |        |        | 



| |                      
| | ---------------------
| | 2004 Compared to 2003



36



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| |                       
| | ----------------------
| | Net Broadcast Revenues









| |                           
| | --------------------------
| | Station Operating Expenses





| |                              
| | -----------------------------
| | Depreciation and Amortization





| |                  
| | -----------------
| | Corporate Expense





| |                 
| | ----------------
| | Interest Expense



37



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| |             
| | ------------
| | Income Taxes









| |                        
| | -----------------------
| | Discontinued Operations



|                                      |  |      |      |   |      |   |       |  
|------------------------------------- |  | ---- | ---- | - | ---- | - | ----- | -
|                                      |  | 2004 |      |   | 2003 |  
|                                      |  |      |      |   |      |  
|Net revenue                           |  | $    | 432  |   |      | $ | 7,417 |  
|Station operating expense             |  |      | 439  |   |      |   | 5,298 |  
|Depreciation and amortization expense |  |      | 292  |   |      |   | 451   |  
|Allocated interest expense            |  |      | 111  |   |      |   | 298   |  
|Other expense, net                    |  |      |     |   |      |   | 14    |  
|                                      |  |      |      |   |      |  
|(Loss) income before income taxes     |  |      | (410 | ) |      |   | 1,356 |  
|Income tax benefit (expense)          |  |      | 161  |   |      |   | (532  | )
|                                      |  |      |      |   |      |  
|Net (loss) income                     |  | $    | (249 | ) |      | $ | 824   |  
|                                      |  |      |      |   |      |  

38



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| |                     
| | --------------------
| | Same Station Results



quarter-to




|                                          |                             |         |        |  |         |   |        |        |  |  |     |   | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | - | 
|                                          |                             | 2004    |        |  | 2003    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 1                                 |                             |         |        |  |         |   |        |        |  |  |     |  
|                                          | (57 stations in 11 markets) |         |        |  |         |   |        |        |  |  |     |   | 
|Net broadcast revenue                     |                             | $       | 17,395 |  |         | $ | 14,925 |        |  |  |     |  
|Less remaining stations and barter effect |                             |         | 4,703  |  |         |   | 3,042  |        |  |  |     |  
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 12,692 |  |         | $ | 11,883 |        |  |  | 6.8 | %
|                                          |                             |         |        |  |         |   |        |        | 



|                                          |                             |         |        |  |         |   |        |        |  |  |     |   | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | - | 
|                                          |                             | 2004    |        |  | 2003    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 2                                 |                             |         |        |  |         |   |        |        |  |  |     |  
|                                          | (69 stations in 13 markets) |         |        |  |         |   |        |        |  |  |     |   | 
|Net broadcast revenue                     |                             | $       | 22,226 |  |         | $ | 19,422 |        |  |  |     |  
|Less remaining stations and barter effect |                             |         | 2,880  |  |         |   | 1,069  |        |  |  |     |  
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 19,346 |  |         | $ | 18,353 |        |  |  | 5.4 | %
|                                          |                             |         |        |  |         |   |        |        | 

39



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|                                          |                             |         |        |  |         |   |        |        |  |  |     |   | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | - | 
|                                          |                             | 2004    |        |  | 2003    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 3                                 |                             |         |        |  |         |   |        |        |  |  |     |  
|                                          | (69 stations in 13 markets) |         |        |  |         |   |        |        |  |  |     |   | 
|Net broadcast revenue                     |                             | $       | 22,454 |  |         | $ | 19,569 |        |  |  |     |  
|Less remaining stations and barter effect |                             |         | 3,011  |  |         |   | 948    |        |  |  |     |  
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 19,443 |  |         | $ | 18,621 |        |  |  | 4.4 | %
|                                          |                             |         |        |  |         |   |        |        | 



|                                          |                             |         |        |  |         |   |        |        |  |  |     |   | 
|----------------------------------------- | --------------------------- | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | - | 
|                                          |                             | 2004    |        |  | 2003    |   |        |       
|                                          |                             | Net     |        |  | Net     |   |        | %      | 
|                                          |                             | Revenue |        |  | Revenue |   |        | Change | 
|                                          |                             |         |        |  |         |   |        |        | 
|Quarter 4                                 |                             |         |        |  |         |   |        |        |  |  |     |  
|                                          | (69 stations in 13 markets) |         |        |  |         |   |        |        |  |  |     |   | 
|Net broadcast revenue                     |                             | $       | 22,112 |  |         | $ | 19,245 |        |  |  |     |  
|Less remaining stations and barter effect |                             |         | 2,927  |  |         |   | 1,041  |        |  |  |     |  
|                                          |                             |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |                             | $       | 19,185 |  |         | $ | 18,204 |        |  |  | 5.4 | %
|                                          |                             |         |        |  |         |   |        |        | 

Liquidity and Capital Resources




| |                   
| | ------------------
| | Executive Overview







40



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| |                  
| | -----------------
| | Cash Requirements



|                                             |  |                        |         |          |         |   |        |             |  |         |            |  |  |            |        |  |  |   |       | 
|-------------------------------------------- |  | ---------------------- | ------- | -------- | ------- | - | ------ | ----------- |  | ------- | ---------- |  |  | ---------- | ------ |  |  | - | ----- | 
|                                             |  | Payments Due by Period |        
|                                             |  |                        |        
|                                             |  |                        |         | One year |         |   | Two to |             |  | Four to |            |  | 
|Contractual Obligation                       |  | Total                  |         |          | or less |   |        | three years |  |         | five years |  |  | Thereafter |       
|                                             |  |                        |         |          |         |   |        |             |  |         |            |  |  |            |       
|Long-term debt(1)                            |  | $                      | 84,450  |          |         | $ | 6,175  |             |  | $       | 23,075     |  |  | $          | 55,200 |  |  | $ |      | 
|Purchase obligations(2)                      |  |                        | 18,484  |          |         |   | 6,476  |             |  |         | 8,348      |  |  |            | 3,660  |  |  |   |      | 
|Capital leases                               |  |                        | 158     |          |         |   | 83     |             |  |         | 67         |  |  |            | 4      |  |  |   | 4     | 
|Interest payment obligations(3)              |  |                        | 15,340  |          |         |   | 4,671  |             |  |         | 7,784      |  |  |            | 2,885  |  |  |   |      | 
|High Definition radio capital obligations(4) |  |                        | 8,200   |          |         |   | 1,000  |             |  |         | 3,000      |  |  |            | 4,200  |  |  |   |      | 
|Asset retirement obligations                 |  |                        | 386     |          |         |   |       |             |  |         |           |  |  |            | 90     |  |  |   | 296   | 
|Operating leases(5)                          |  |                        | 6,562   |          |         |   | 1,249  |             |  |         | 2,273      |  |  |            | 1,065  |  |  |   | 1,975 | 
|                                             |  |                        |         |          |         |   |        |             |  |         |            |  |  |            |       
|Total contractual cash obligations           |  | $                      | 133,580 |          |         | $ | 19,654 |             |  | $       | 44,547     |  |  | $          | 67,104 |  |  | $ | 2,275 | 
|                                             |  |                        |         |          |         |   |        |             |  |         |            |  |  |            |       






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | If we would default on the terms of our credit facility,
    approximately $78.3 million of long-term debt could be
    accelerated to currently due and payable. Under the terms of our
    credit facility, our maximum borrowings began reducing over a
    six-year period in 2004. Based upon our outstanding borrowings
    at December 31, 2005, these payments would be required to
    maintain compliance with the terms and conditions of our credit
    facility.
|   
|(2) | Includes employment contracts of approximately $5.0 million
    and sports rights, ratings services, music license fees and
    other programming contracts of approximately $13.5 million.
    Employment contracts, sports rights, ratings services and
    programming contracts are expensed over the life of the contract
    in station operating income or corporate general and
    administrative expense.                                                          
|   
|(3) | Represents interest payments on the amortizing balances of the
    term loan and revolving credit facilities, assuming all-in
    interest rates ranging from 6% to 8%.                                                                                                                                                                                                                                                                                                      

41



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|    |                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Represents estimated capital requirements to implement HD radio
    per a contractual agreement with Ibiquity Digital Corporation.
    Regent may choose to accelerate the expenditures if the economic
    benefits of broadcasting HD radio make it advantageous to do so.
|   
|(5) | Operating leases are included in station operating expenses.                                                                                                                                                                                                                



|             |  |            |        |  |            |  |        | 
|------------ |  | ---------- | ------ |  | ---------- |  | ------ | 
|             |  | Revolving  |        |  | Term Loan  | 
|December 31, |  | Commitment |        |  | Commitment | 
|             |  |            |        |  |            | 
|2005         |  |            | 81,175 |  |            |  | 60,450 | 
|2006         |  |            | 72,888 |  |            |  | 54,275 | 
|2007         |  |            | 60,350 |  |            |  | 44,363 | 
|2008         |  |            | 42,288 |  |            |  | 31,200 | 
|2009         |  |            | 21,463 |  |            |  | 15,600 | 
|2010         |  |            | -0-    |  |            |  | -0-    | 





| |                 
| | ----------------
| | Sources of Funds

WRUN-AM


KTRR-FM KUAD-FM






42



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|                   |  |            |        |  |            |  |        |            |  |  |         | 
|------------------ |  | ---------- | ------ |  | ---------- |  | ------ | ---------- |  |  | ------- | 
|                   |  | Revolving  |        |  | Term Loan  |  |        | Total      | 
|Period Ending      |  | Commitment |        |  | Commitment |  |        | Commitment | 
|                   |  |            |        |  |            |  |        |            | 
|December 31, 2005  |  |            | 81,175 |  |            |  | 60,450 |            |  |  | 141,625 | 
|March 31, 2006     |  |            | 79,900 |  |            |  | 59,150 |            |  |  | 139,050 | 
|June 30, 2006      |  |            | 77,563 |  |            |  | 57,850 |            |  |  | 135,413 | 
|September 30, 2006 |  |            | 75,225 |  |            |  | 56,550 |            |  |  | 131,775 | 
|December 31, 2006  |  |            | 72,888 |  |            |  | 54,275 |            |  |  | 127,163 | 







S-3




| |              
| | -------------
| | Uses of Funds





43



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| |                                         
| | ----------------------------------------
| | Off-Balance Sheet Financing Arrangements










|         |                                                                
|-------- | ---------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk.



44



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|        |                                             
|------- | --------------------------------------------
|Item 8. | Financial Statements and Supplementary Data.

Regent Communications, Inc.


Index to Financial Statements


|                              |                                                                                                                                    |      |  |    | 
|----------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ---- |  | -- | 
|                              |                                                                                                                                    | Page | 
|                              |                                                                                                                                    |      | 
|Financial Statements:         |                                                                                                                                    |      |  |   
|                              | Managements Report on Internal
    Control Over Financial Reporting                                                               |      |  | 46 | 
|                              | Report of Independent Registered Public
    Accounting Firm                                                                        |      |  | 47 | 
|                              | Report of Independent Registered Public
    Accounting Firm                                                                        |      |  | 48 | 
|                              | Report of Independent Registered Public
    Accounting Firm                                                                        |      |  | 49 | 
|                              | Consolidated Statements of Operations and
    Comprehensive (Loss) Income for the years ended
    December 31, 2005, 2004 and 2003 |      |  | 50 | 
|                              | Consolidated Balance Sheets at
    December 31, 2005 and 2004                                                                      |      |  | 51 | 
|                              | Consolidated Statements of Cash Flows for
    the years ended December 31, 2005, 2004 and 2003                                     |      |  | 52 | 
|                              | Consolidated Statements of Changes in
    Stockholders Equity for the years ended December 31,
    2005, 2004 and 2003            |      |  | 53 | 
|                              | Notes to Consolidated Financial
    Statements                                                                                     |      |  | 54 | 
|Financial Statement Schedule: |                                                                                                                                    |      |  |   
|                              | For each of the three years in the period ended
    December 31, 2005:                                                             |      |  |    | 
|                              | II  Valuation and Qualifying
    Accounts                                                                                         |      |  | 77 | 



45



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MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING


13a-15(f)




| |   |                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Pertain to the maintenance of records that, in reasonable
    detail, accurately and fairly reflect the transactions and
    dispositions of the assets of the Company;                                                                                                                                                                                       
|
| |  | Provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with generally accepted accounting principles, and
    that receipts and expenditures of the Company are being made
    only in accordance with authorization of management and
    directors of the Company; and
|
| |  | Provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of the
    Companys assets that could have a material effect on the
    financial statements.                                                                                                                                      



Internal
Control  Integrated Framework






|                        | 
|----------------------- | 
|/s/ William L. Stakelin | 
|                        | 
|William L. Stakelin,    | 
|Chief Executive Officer | 












46



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM






Internal Control  Integrated Framework








Internal
Control  Integrated Framework Internal Control  Integrated
Framework










47



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












Internal Control 
Integrated Framework








48



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












49



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REGENT COMMUNICATIONS, INC.


CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS) INCOME


(In thousands, except per share amounts)


|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |        |      |        |      |        |      |  
|----------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ------------------------------------------------------------ | --------------------------------------------- | ----- | ------ | ----- | ------ | ----- | ------ | ---- | ------ | ---- | ------ | ---- | -
|                                                                                                                                                      |                                                                                 | Year Ended December 31,                                      |                                              
|                                                                                                                                                      |                                                                                 |                                                              |                                              
|                                                                                                                                                      |                                                                                 | 2005                                                         |                                               |       | 2004   |       |        | 2003  |       
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|Broadcast revenues, net of agency commissions of $9,000, $8,725
    and $7,681 for the years ended December 31, 2005, 2004 and
    2003, respectively |                                                                                 | $                                                            | 85,600                                        |       |        | $     | 84,187 |       |        | $    | 73,161 |     
|Station operating expenses                                                                                                                            |                                                                                 |                                                              | 57,578                                        |       |        |       | 55,524 |       |        |      | 51,228 |     
|Depreciation and amortization                                                                                                                         |                                                                                 |                                                              | 5,348                                         |       |        |       | 5,809  |       |        |      | 3,811  |     
|Corporate general and administrative expenses                                                                                                         |                                                                                 |                                                              | 7,945                                         |       |        |       | 7,680  |       |        |      | 6,151  |     
|Impairment of indefinite-lived intangible assets                                                                                                      |                                                                                 |                                                              | 20,800                                        |       |        |       |       |       |        |      |       |     
|Loss on sale of long-lived assets                                                                                                                     |                                                                                 |                                                              | 215                                           |       |        |       | 407    |       |        |      | 105    |     
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|                                                                                                                                                      |                                                                                 | Operating (loss) income                                      |                                               |       | (6,286 | )     |        |       | 14,767 |      |        |      | 11,866 |     
|Interest expense                                                                                                                                      |                                                                                 |                                                              | (4,775                                        | )     |        |       | (3,599 | )     |        |      | (3,373 | )   
|Other income (expense), net                                                                                                                           |                                                                                 |                                                              | 1,122                                         |       |        |       | (160   | )     |        |      | (181   | )   
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|                                                                                                                                                      |                                                                                 | (Loss) income from continuing operations before income taxes |                                               |       | (9,939 | )     |        |       | 11,008 |      |        |      | 8,312  |     
|Income tax benefit (expense)                                                                                                                          |                                                                                 |                                                              | 3,318                                         |       |        |       | (4,565 | )     |        |      | (3,430 | )   
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|(Loss) income from continuing operations                                                                                                              |                                                                                 |                                                              | (6,621                                        | )     |        |       | 6,443  |       |        |      | 4,882  |     
|Discontinued operations:                                                                                                                              |                                                                                 |                                                              |                                               |       |        |       |        |       |        |      |        |     
|                                                                                                                                                      | (Loss) gain from operations of discontinued operations, net of
    income taxes |                                                              |                                               | (18   | )      |       |        | (249  | )      |      |        | 824  |       
|                                                                                                                                                      | Gain on sale of discontinued operations, net of income taxes                    |                                                              |                                               |      |        |       |        | 7,041 |        |      |        |     |       
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|NET (LOSS) INCOME                                                                                                                                     |                                                                                 |                                                              | (6,639                                        | )     |        |       | 13,235 |       |        |      | 5,706  |     
|Other comprehensive income (loss), net of tax:                                                                                                        |                                                                                 |                                                              |                                               |       |        |       |        |       |        |      |        |     
|                                                                                                                                                      |                                                                                 |                                                              | Net unrealized gain (loss) on cash flow hedge |       |        | 238   |        |       |        | 55   |        |      |        | (199 | )
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|NET COMPREHENSIVE (LOSS) INCOME                                                                                                                       |                                                                                 | $                                                            | (6,401                                        | )     |        | $     | 13,290 |       |        | $    | 5,507  |     
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|BASIC AND DILUTED (LOSS) INCOME PER COMMON SHARE:                                                                                                     |                                                                                 |                                                              |                                               |       |        |       |        |       |        |      |        |     
|                                                                                                                                                      | (Loss) income from continuing operations                                        |                                                              | $                                             | (0.15 | )      |       | $      | 0.14  |        |      | $      | 0.10 |       
|                                                                                                                                                      | Discontinued operations                                                         |                                                              |                                               |      |        |       |        | 0.15  |        |      |        | 0.02 |       
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|                                                                                                                                                      |                                                                                 |                                                              | Net (loss) income                             |       | $      | (0.15 | )      |       | $      | 0.29 |        |      | $      | 0.12 |  
|                                                                                                                                                      |                                                                                 |                                                              |                                               |       |        |       |        |       |       
|Weighted average number of common shares used in basic
    calculation                                                                                |                                                                                 |                                                              | 43,214                                        |       |        |       | 45,780 |       |        |      | 46,515 |     
|Weighted average number of common shares used in diluted
    calculation                                                                              |                                                                                 |                                                              | 43,214                                        |       |        |       | 46,164 |       |        |      | 46,837 |     



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REGENT COMMUNICATIONS, INC.


CONSOLIDATED BALANCE SHEETS


(In thousands, except share and per share amounts)


|                                        |                                                                                                                                                          |                           |                                            |         |         |         |         |         |         |         | 
|--------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ------------------------------------------ | ------- | ------- | ------- | ------- | ------- | ------- | ------- | 
|                                        |                                                                                                                                                          | December 31,              |                                           
|                                        |                                                                                                                                                          |                           |                                           
|                                        |                                                                                                                                                          | 2005                      |                                            |         | 2004    |        
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|ASSETS                                 
|Current assets:                         |                                                                                                                                                          |                           |                                            |         |         |         |         |        
|                                        | Cash and cash equivalents                                                                                                                                |                           | $                                          | 846     |         |         | $       | 1,246   |        
|                                        | Accounts receivable, net of allowance of $802 and $844 at
    December 31, 2005 and 2004, respectively                                                   |                           |                                            | 13,224  |         |         |         | 13,618  |        
|                                        | Assets held for sale                                                                                                                                     |                           |                                            |        |         |         |         | 465     |        
|                                        | Other current assets                                                                                                                                     |                           |                                            | 1,983   |         |         |         | 889     |        
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|                                        |                                                                                                                                                          | Total current assets      |                                            |         | 16,053  |         |         |         | 16,218  |        
|Property and equipment, net             |                                                                                                                                                          |                           | 36,131                                     |         |         |         | 36,944  |        
|Intangible assets, net                  |                                                                                                                                                          |                           | 290,071                                    |         |         |         | 309,116 |        
|Goodwill, net                           |                                                                                                                                                          |                           | 30,736                                     |         |         |         | 32,990  |        
|Other assets                            |                                                                                                                                                          |                           | 1,490                                      |         |         |         | 2,093   |        
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|                                        |                                                                                                                                                          | Total assets              |                                            | $       | 374,481 |         |         | $       | 397,361 |        
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|                                       
|LIABILITIES AND STOCKHOLDERS EQUITY   
|Current liabilities:                    |                                                                                                                                                          |                           |                                            |         |         |         |         |        
|                                        | Current portion of long-term debt                                                                                                                        |                           | $                                          | 6,175   |         |         | $       | 4,068   |        
|                                        | Accounts payable                                                                                                                                         |                           |                                            | 1,558   |         |         |         | 1,772   |        
|                                        | Accrued compensation                                                                                                                                     |                           |                                            | 1,520   |         |         |         | 2,075   |        
|                                        | Other current liabilities                                                                                                                                |                           |                                            | 3,188   |         |         |         | 3,710   |        
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|                                        |                                                                                                                                                          | Total current liabilities |                                            |         | 12,441  |         |         |         | 11,625  |        
|Long-term debt, less current portion    |                                                                                                                                                          |                           | 78,275                                     |         |         |         | 72,450  |        
|Other long-term liabilities             |                                                                                                                                                          |                           | 875                                        |         |         |         | 965     |        
|Deferred taxes                          |                                                                                                                                                          |                           | 20,834                                     |         |         |         | 23,495  |        
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|                                        |                                                                                                                                                          | Total liabilities         |                                            |         | 112,425 |         |         |         | 108,535 |        
|Commitments and Contingencies (Note 13) |                                                                                                                                                          |                           |                                            |         |         |         |         |        
|Stockholders equity:                   |                                                                                                                                                          |                           |                                            |         |         |         |         |        
|                                        | Common stock, $.01 par value, 100,000,000 shares
    authorized; 48,085,992 and 48,083,492 shares issued at
    December 31, 2005 and 2004, respectively |                           |                                            | 481     |         |         |         | 481     |        
|                                        | Treasury stock, 6,475,759 and 2,958,466 shares, at cost at
    December 31, 2005 and 2004, respectively                                                  |                           |                                            | (36,774 | )       |         |         | (15,994 | )      
|                                        | Additional paid-in capital                                                                                                                               |                           |                                            | 348,401 |         |         |         | 347,990 |        
|                                        | Accumulated other comprehensive income (loss)                                                                                                            |                           |                                            | 94      |         |         |         | (144    | )      
|                                        | Accumulated deficit                                                                                                                                      |                           |                                            | (50,146 | )       |         |         | (43,507 | )      
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|                                        |                                                                                                                                                          |                           | Total stockholders equity                 |         |         | 262,056 |         |         |         | 288,826 | 
|                                        |                                                                                                                                                          |                           |                                            |         |         |        
|                                        |                                                                                                                                                          |                           | Total liabilities and stockholders equity |         | $       | 374,481 |         |         | $       | 397,361 | 
|                                        |                                                                                                                                                          |                           |                                            |         |         |        



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REGENT COMMUNICATIONS, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)


|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |         |   |         |         |        |  
|------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------ | ------- | ------- | ------ | - | ------- | ------- | ------- | - | ------- | ------- | ------ | -
|                                                                          |                                                                                                                                      | Year Ended December 31,                          |        
|                                                                          |                                                                                                                                      |                                                  |        
|                                                                          |                                                                                                                                      | 2005                                             |         |         | 2004   |   |         | 2003    |        
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Cash flows from operating activities:                                     |                                                                                                                                      |                                                  |         |         |        |   |         |         |         |   |         |        
|Net (loss) income                                                         |                                                                                                                                      | $                                                | (6,639  | )       |        | $ | 13,235  |         |         | $ | 5,706   |        
|                                                                          | Adjustments to reconcile net (loss) income to net cash provided
    by operating activities:                                         |                                                  |         |         |        |   |         |         |         |   |         |         |       
|                                                                          |                                                                                                                                      | Impairment of indefinite-lived intangible assets |         |         | 20,800 |   |         |         |        |   |         |         |       |  
|                                                                          |                                                                                                                                      | Depreciation and amortization                    |         |         | 5,348  |   |         |         | 6,101   |   |         |         | 4,262  |  
|                                                                          |                                                                                                                                      | Provision for doubtful accounts                  |         |         | 462    |   |         |         | 536     |   |         |         | 908    |  
|                                                                          |                                                                                                                                      | Deferred income tax (benefit) expense            |         |         | (3,256 | ) |         |         | 8,689   |   |         |         | 3,860  |  
|                                                                          |                                                                                                                                      | Write-off of unamortized deferred finance costs  |         |         |       |   |         |         |        |   |         |         | 1,032  |  
|                                                                          |                                                                                                                                      | Non-cash interest expense                        |         |         | 423    |   |         |         | 409     |   |         |         | 321    |  
|                                                                          |                                                                                                                                      | Non-cash charge for compensation                 |         |         | 994    |   |         |         | 641     |   |         |         | 497    |  
|                                                                          |                                                                                                                                      | Gain on sale of radio stations, net              |         |         |       |   |         |         | (11,625 | ) |         |         |       |  
|                                                                          |                                                                                                                                      | Loss on sale of long-lived assets                |         |         | 224    |   |         |         | 407     |   |         |         | 102    |  
|                                                                          |                                                                                                                                      | Other, net                                       |         |         | (264   | ) |         |         | (293    | ) |         |         | (102   | )
|                                                                          | Changes in operating assets and liabilities, net of acquisitions
    and dispositions:                                               |                                                  |         |         |        |   |         |         |         |   |         |         |       
|                                                                          |                                                                                                                                      | Accounts receivable                              |         |         | 48     |   |         |         | (743    | ) |         |         | (723   | )
|                                                                          |                                                                                                                                      | Other assets                                     |         |         | (29    | ) |         |         | (406    | ) |         |         | 14     |  
|                                                                          |                                                                                                                                      | Current and long-term liabilities                |         |         | (605   | ) |         |         | 1,258   |   |         |         | (1,899 | )
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Net cash provided by operating activities                                 |                                                                                                                                      |                                                  | 17,506  |         |        |   | 18,209  |         |         |   | 13,978  |        
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Cash flows from investing activities:                                     |                                                                                                                                      |                                                  |         |         |        |   |         |         |         |   |         |        
|                                                                          | Acquisitions of radio stations, net of cash acquired,
    acquisition related costs, and escrow deposits on pending
    acquisitions |                                                  |         | (506    | )      |   |         | (14,203 | )       |   |         | (63,322 | )     
|                                                                          | Capital expenditures                                                                                                                 |                                                  |         | (3,848  | )      |   |         | (3,843  | )       |   |         | (5,033  | )     
|                                                                          | Net proceeds from sale of long-lived assets and other                                                                                |                                                  |         | 453     |        |   |         | 30      |         |   |         | 29      |       
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Net cash used in investing activities                                     |                                                                                                                                      |                                                  | (3,901  | )       |        |   | (18,016 | )       |         |   | (68,326 | )      
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Cash flows from financing activities:                                     |                                                                                                                                      |                                                  |         |         |        |   |         |         |         |   |         |        
|                                                                          | Proceeds from issuance of common stock                                                                                               |                                                  |         | 12      |        |   |         |        |         |   |         |        |       
|                                                                          | Proceeds from long-term debt                                                                                                         |                                                  |         | 22,000  |        |   |         | 19,000  |         |   |         | 138,500 |       
|                                                                          | Principal payments on long-term debt                                                                                                 |                                                  |         | (14,067 | )      |   |         | (10,373 | )       |   |         | (82,029 | )     
|                                                                          | Payment of financing costs                                                                                                           |                                                  |         | (39     | )      |   |         | (86     | )       |   |         | (1,959  | )     
|                                                                          | Payment of issuance costs                                                                                                            |                                                  |         |        |        |   |         |        |         |   |         | (1      | )     
|                                                                          | Treasury stock purchases                                                                                                             |                                                  |         | (21,787 | )      |   |         | (8,996  | )       |   |         | (992    | )     
|                                                                          | Repayment of capital lease obligations                                                                                               |                                                  |         | (124    | )      |   |         | (165    | )       |   |         | (154    | )     
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Net cash (used in) provided by financing activities                       |                                                                                                                                      |                                                  | (14,005 | )       |        |   | (620    | )       |         |   | 53,365  |        
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Net decrease in cash and cash equivalents                                 |                                                                                                                                      |                                                  | (400    | )       |        |   | (427    | )       |         |   | (983    | )      
|Cash and cash equivalents at beginning of period                          |                                                                                                                                      |                                                  | 1,246   |         |        |   | 1,673   |         |         |   | 2,656   |        
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Cash and cash equivalents at end of period                                |                                                                                                                                      | $                                                | 846     |         |        | $ | 1,246   |         |         | $ | 1,673   |        
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Supplemental schedule of non-cash investing and financing
    activities: |                                                                                                                                      |                                                  |         |         |        |   |         |         |         |   |         |        
|                                                                          | Capital lease obligations for property and equipment                                                                                 |                                                  | $       | 64      |        |   | $       | 148     |         |   | $       | 150     |       
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|                                                                          | Fair value of assets exchanged, excluding amount paid in cash                                                                        |                                                  | $       |        |        |   | $       | 44,594  |         |   | $       |        |       
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|Supplemental data:                                                        |                                                                                                                                      |                                                  |         |         |        |   |         |         |         |   |         |        
|                                                                          | Cash paid for interest                                                                                                               |                                                  | $       | 4,377   |        |   | $       | 3,311   |         |   | $       | 4,132   |       
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        
|                                                                          | Cash paid for income taxes                                                                                                           |                                                  | $       | 252     |        |   | $       | 160     |         |   | $       | 215     |       
|                                                                          |                                                                                                                                      |                                                  |         |         |        |   |         |         |        



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REGENT COMMUNICATIONS, INC.





CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS
EQUITY


(In thousands, except share amounts)


|                                                                                     |  |        |     |  |          |            |         |         |  |             |               |   |  |        |         |   |               |   |      |   |  |   |         |  
|------------------------------------------------------------------------------------ |  | ------ | --- |  | -------- | ---------- | ------- | ------- |  | ----------- | ------------- | - |  | ------ | ------- | - | ------------- | - | ---- | - |  | - | ------- | -
|                                                                                     |  |        |     |  |          |            |         |         |  | Accumulated |               |   | 
|                                                                                     |  |        |     |  |          |            |         |         |  | Other       |               |   | 
|                                                                                     |  |        |     |  |          | Additional |         |         |  |             | Comprehensive |   |  | Total  |        
|                                                                                     |  | Common |     |  | Treasury |            |         | Paid-In |  |             | Accumulated   |   |  | (Loss) |         |   | Stockholders |  
|                                                                                     |  | Stock  |     |  | Stock    |            |         | Capital |  |             | Deficit       |   |  | Income |         |   | Equity        |  
|                                                                                     |  |        |     |  |          |            |         |         |  |             |               |   |  |        |         |   |               |  
|Balance, December 31, 2002                                                           |  | $      | 480 |  |          | $          | (7,575  | )       |  | $           | 348,033       |   |  | $      | (62,448 | ) |               | $ |     |   |  | $ | 278,490 |  
|Stock bonus award (30,960 shares)                                                    |  |        |    |  |          |            | 170     |         |  |             | 13            |   |  |        |        |   |               |   |     |   |  |   | 183     |  
|Non-cash exercise of 36,110 stock options                                            |  |        | 1   |  |          |            |        |         |  |             | (1            | ) |  |        |        |   |               |   |     |   |  |   |        |  
|Issuance of 69,794 shares of treasury stock for 401(k)
    match, net of forfeitures |  |        |    |  |          |            | 384     |         |  |             | 2             |   |  |        |        |   |               |   |     |   |  |   | 386     |  
|Issuance of 49,647 shares of treasury stock for employee
    stock purchase plan     |  |        |    |  |          |            | 273     |         |  |             | (31           | ) |  |        |        |   |               |   |     |   |  |   | 242     |  
|Purchase of 201,500 shares of treasury stock                                         |  |        |    |  |          |            | (992    | )       |  |             |              |   |  |        |        |   |               |   |     |   |  |   | (992    | )
|Seller forfeiture of escrow shares of common stock (3,050)                           |  |        |    |  |          |            | (18     | )       |  |             |              |   |  |        |        |   |               |   |     |   |  |   | (18     | )
|Net income                                                                           |  |        |    |  |          |            |        |         |  |             |              |   |  |        | 5,706   |   |               |   |     |   |  |   | 5,706   |  
|Other comprehensive loss                                                             |  |        |    |  |          |            |        |         |  |             |              |   |  |        |        |   |               |   | (199 | ) |  |   | (199    | )
|                                                                                     |  |        |     |  |          |            |         |         |  |             |               |   |  |        |         |   |               |  
|Balance, December 31, 2003                                                           |  |        | 481 |  |          |            | (7,758  | )       |  |             | 348,016       |   |  |        | (56,742 | ) |               |   | (199 | ) |  |   | 283,798 |  
|Stock bonus award (13,580 shares)                                                    |  |        |    |  |          |            | 75      |         |  |             | 20            |   |  |        |        |   |               |   |     |   |  |   | 95      |  
|Issuance of 68,356 shares of treasury stock for 401(k)
    match, net of forfeitures |  |        |    |  |          |            | 425     |         |  |             | (11           | ) |  |        |        |   |               |   |     |   |  |   | 414     |  
|Issuance of 42,323 shares of treasury stock for employee
    stock purchase plan     |  |        |    |  |          |            | 260     |         |  |             | (37           | ) |  |        |        |   |               |   |     |   |  |   | 223     |  
|Purchase of 1,540,020 shares of treasury stock                                       |  |        |    |  |          |            | (8,996  | )       |  |             |              |   |  |        |        |   |               |   |     |   |  |   | (8,996  | )
|Stock-based compensation expense                                                     |  |        |    |  |          |            |        |         |  |             | 2             |   |  |        |        |   |               |   |     |   |  |   | 2       |  
|Net income                                                                           |  |        |    |  |          |            |        |         |  |             |              |   |  |        | 13,235  |   |               |   |     |   |  |   | 13,235  |  
|Other comprehensive income                                                           |  |        |    |  |          |            |        |         |  |             |              |   |  |        |        |   |               |   | 55   |   |  |   | 55      |  
|                                                                                     |  |        |     |  |          |            |         |         |  |             |               |   |  |        |         |   |               |  
|Balance, December 31, 2004                                                           |  |        | 481 |  |          |            | (15,994 | )       |  |             | 347,990       |   |  |        | (43,507 | ) |               |   | (144 | ) |  |   | 288,826 |  
|Stock bonus award (37,517 shares)                                                    |  |        |    |  |          |            | 235     |         |  |             | (40           | ) |  |        |        |   |               |   |     |   |  |   | 195     |  
|Issuance of 88,975 shares of treasury stock for 401(k)
    match, net of forfeitures |  |        |    |  |          |            | 498     |         |  |             | (20           | ) |  |        |        |   |               |   |     |   |  |   | 478     |  
|Issuance of 49,126 shares of treasury stock for employee
    stock purchase plan     |  |        |    |  |          |            | 274     |         |  |             | (49           | ) |  |        |        |   |               |   |     |   |  |   | 225     |  
|Purchase of 3,692,911 shares of treasury stock                                       |  |        |    |  |          |            | (21,787 | )       |  |             |              |   |  |        |        |   |               |   |     |   |  |   | (21,787 | )
|Stock-based compensation expense                                                     |  |        |    |  |          |            |        |         |  |             | 508           |   |  |        |        |   |               |   |     |   |  |   | 508     |  
|Exercise of 2,500 common stock options                                               |  |        |    |  |          |            |        |         |  |             | 12            |   |  |        |        |   |               |   |     |   |  |   | 12      |  
|Net loss                                                                             |  |        |    |  |          |            |        |         |  |             |              |   |  |        | (6,639  | ) |               |   |     |   |  |   | (6,639  | )
|Other comprehensive income                                                           |  |        |    |  |          |            |        |         |  |             |              |   |  |        |        |   |               |   | 238  |   |  |   | 238     |  
|                                                                                     |  |        |     |  |          |            |         |         |  |             |               |   |  |        |         |   |               |  
|Balance, December 31, 2005                                                           |  | $      | 481 |  |          | $          | (36,774 | )       |  | $           | 348,401       |   |  | $      | (50,146 | ) |               | $ | 94   |   |  | $ | 262,056 |  
|                                                                                     |  |        |     |  |          |            |         |         |  |             |               |   |  |        |         |   |               |  



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REGENT COMMUNICATIONS, INC.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |                               
|-- | ------------------------------
|1. | Summary of Accounting Policies



| |                  
| | -----------------
| | a. Consolidation:





| |                            
| | ---------------------------
| | b. Description of Business:





| |                     
| | --------------------
| | c. Use of Estimates:





| |                              
| | -----------------------------
| | d. Cash and Cash Equivalents:





| |                           
| | --------------------------
| | e. Property and Equipment:

three-to three-to




| |                                         
| | ----------------------------------------
| | f. Goodwill and Other Intangible Assets:



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |                                    
| | -----------------------------------
| | g. Impairment of Long-Lived Assets:





| |                             
| | ----------------------------
| | h. Deferred Financing Costs:





| |                                  
| | ---------------------------------
| | i. Concentrations of Credit Risk:





| |                        
| | -----------------------
| | j. Revenue Recognition:



| |                  
| | -----------------
| | Broadcast Revenue



55



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                    
| | -------------------
| | Barter Transactions





| |                          
| | -------------------------
| | Time Brokerage Agreements





| |                                        
| | ---------------------------------------
| | k. Fair Value of Financial Instruments:



| |                       
| | ----------------------
| | Short-Term Instruments





| |                                     
| | ------------------------------------
| | Investments in Marketable Securities





| |               
| | --------------
| | Long-Term Debt





| |                    
| | -------------------
| | Interest Rate Swaps



56



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                 
| | ----------------
| | l. Income Taxes:





| |                                    
| | -----------------------------------
| | m. Advertising and Promotion Costs:





| |                                                                
| | ---------------------------------------------------------------
| | n. Accounts Receivable and Allowance for Doubtful
    Accounts:





| |                               
| | ------------------------------
| | o. Variable Interest Entities:





| |                                   
| | ----------------------------------
| | p. Stock-Based Compensation Plans:



57



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                                    |             |                         |         |       |      |   |        |      |  |   |        |      | 
|--------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ----------------------- | ------- | ----- | ---- | - | ------ | ---- |  | - | ------ | ---- | 
|                                                                                                                                                    |             | Year Ended December 31, |        
|                                                                                                                                                    |             |                         |        
|                                                                                                                                                    |             | 2005                    |         |       | 2004 |   |        | 2003 | 
|                                                                                                                                                    |             |                         |         |       |      |   |        |      | 
|Net (loss) income, as reported                                                                                                                      |             | $                       | (6,639  | )     |      | $ | 13,235 |      |  | $ | 5,706  |     
|Add: Stock-based employee compensation included in reported net
    (loss) income, net of related tax effects                                       |             |                         | 335     |       |      |   | 1      |      |  |   |       |     
|Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    related tax effects |             |                         | (4,195  | )     |      |   | (1,497 | )    |  |   | (1,362 | )   
|                                                                                                                                                    |             |                         |         |       |      |   |        |      | 
|Pro forma net (loss) income                                                                                                                         |             | $                       | (10,499 | )     |      | $ | 11,739 |      |  | $ | 4,344  |     
|                                                                                                                                                    |             |                         |         |       |      |   |        |      | 
|Pro forma (loss) income applicable to common shares                                                                                                 |             | $                       | (10,499 | )     |      | $ | 11,739 |      |  | $ | 4,344  |     
|                                                                                                                                                    |             |                         |         |       |      |   |        |      | 
|Basic (loss) income per share:                                                                                                                      |             |                         |         |       |      |   |        |      |  |   |        |     
|                                                                                                                                                    | As reported |                         | $       | (0.15 | )    |   | $      | 0.29 |  |   | $      | 0.12 | 
|                                                                                                                                                    | Pro forma   |                         | $       | (0.24 | )    |   | $      | 0.26 |  |   | $      | 0.09 | 
|Diluted (loss) income per share:                                                                                                                    |             |                         |         |       |      |   |        |      |  |   |        |     
|                                                                                                                                                    | As reported |                         | $       | (0.15 | )    |   | $      | 0.29 |  |   | $      | 0.12 | 
|                                                                                                                                                    | Pro forma   |                         | $       | (0.24 | )    |   | $      | 0.25 |  |   | $      | 0.09 | 





| |                            
| | ---------------------------
| | q. Discontinued Operations:



| |                    
| | -------------------
| | Disposal of Markets



58



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                  |  |      |     |   |      |   |      |      |  |   |       | 
|--------------------------------- |  | ---- | --- | - | ---- | - | ---- | ---- |  | - | ----- | 
|                                  |  | 2005 |     |   | 2004 |   |      | 2003 | 
|                                  |  |      |     |   |      |   |      |      | 
|Net revenue                       |  | $    |    |   |      | $ | 432  |      |  | $ | 7,417 | 
|Depreciation and amortization     |  |      |    |   |      |   | 292  |      |  |   | 451   | 
|Allocated interest expense        |  |      |    |   |      |   | 111  |      |  |   | 298   | 
|(Loss) income before income taxes |  |      | (27 | ) |      |   | (410 | )    |  |   | 1,365 | 



| |                     
| | --------------------
| | Assets held for sale



|                          |  |          |      |  
|------------------------- |  | -------- | ---- | -
|                          |  | Assets   |     
|                          |  | Held for |     
|                          |  | Sale     |     
|                          |  |          |     
|Land and improvements     |  | $        | 169  |  
|Building and improvements |  |          | 78   |  
|Equipment                 |  |          | 342  |  
|FCC licenses              |  |          | 25   |  
|                          |  |          |     
|                          |  |          | 614  |  
|Accumulated depreciation  |  |          | (149 | )
|                          |  |          |     
|                          |  | $        | 465  |  
|                          |  |          |     





| |                      
| | ---------------------
| | r. Business Segments:





|   |                              
|-- | -----------------------------
|2. | Acquisitions and Dispositions



59



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                 
| | ----------------
| | 2005 Disposition

WRUN-AM WRUN-AM




| |                                   
| | ----------------------------------
| | 2004 Acquisitions and Dispositions

(KKCB-FM, KLDJ-FM, KBMX-FM (WYNG-FM, WDKS-FM, WKRI-FM, WGBF-FM,


(WXKC-FM, WRIE-AM, WXTA-FM, (WIOV-AM (WBNQ-FM, WBWN-FM, (WTRX-FM


KKPL-FM KARS-FM, KKPL-FM


60



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                  
| | -----------------
| | 2003 Acquisitions





| |   |                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | WIOV-FM and
    WIOV-AM, serving the
    Lancaster-Reading, Pennsylvania market                                                                                                                     
|
| |  | WKDQ-FM,
    WBKR-FM and
    WOMI-AM, serving the
    Evansville, Indiana and Owensboro, Kentucky markets                                                                                           
|
| |  | KTRR-FM,
    KUAD-FM and
    KKQZ-FM (formerly a
    construction permit prior to commencing broadcast operations on
    November 1, 2002) serving the Ft. Collins-Greeley,
    Colorado market, and
|
| |  | KKCB-FM,
    KLDJ-FM,
    KBMX-FM and
    WEBC-AM, serving the
    Duluth, Minnesota market                                                                                                         





|   |               
|-- | --------------
|3. | Long-Term Debt



|                                          |  |      |        |   |      |   |        |  
|----------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | -
|                                          |  | 2005 |        |   | 2004 |  
|                                          |  |      |        |   |      |  
|Senior reducing term loan                 |  | $    | 60,450 |   |      | $ | 64,188 |  
|Senior reducing revolving credit facility |  |      | 24,000 |   |      |   | 12,000 |  
|Subordinated promissory note              |  |      |       |   |      |   | 330    |  
|                                          |  |      |        |   |      |  
|                                          |  |      | 84,450 |   |      |   | 76,518 |  
|Less: current portion of long-term debt   |  |      | (6,175 | ) |      |   | (4,068 | )
|                                          |  |      |        |   |      |  
|                                          |  | $    | 78,275 |   |      | $ | 72,450 |  
|                                          |  |      |        |   |      |  



| |                                          
| | -----------------------------------------
| | Senior Reducing Revolving Credit Facility



61



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|             |  |            |        |  |            |   |        | 
|------------ |  | ---------- | ------ |  | ---------- | - | ------ | 
|             |  | Revolving  |        |  | Term Loan  |  
|December 31, |  | Commitment |        |  | Commitment |  
|             |  |            |        |  |            |  
|2003         |  | $          | 85,000 |  |            | $ | 65,000 | 
|2004         |  |            | 85,000 |  |            |   | 64,188 | 
|2005         |  |            | 81,175 |  |            |   | 60,450 | 
|2006         |  |            | 72,888 |  |            |   | 54,275 | 
|2007         |  |            | 60,350 |  |            |   | 44,363 | 
|2008         |  |            | 42,288 |  |            |   | 31,200 | 
|2009         |  |            | 21,463 |  |            |   | 15,600 | 
|2010         |  |            |       |  |            |   |       | 





62



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|           |  |   |        | 
|---------- |  | - | ------ | 
|2006       |  | $ | 6,175  | 
|2007       |  |   | 9,912  | 
|2008       |  |   | 13,163 | 
|2009       |  |   | 18,138 | 
|2010       |  |   | 37,062 | 
|Thereafter |  |   |       | 
|           |  |   |       
|           |  | $ | 84,450 | 
|           |  |   |       





|   |                                   
|-- | ----------------------------------
|4. | Supplemental Guarantor Information





|   |              
|-- | -------------
|5. | Capital Stock









63



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|   |                               
|-- | ------------------------------
|6. | Stock-Based Compensation Plans



| |                                  
| | ---------------------------------
| | 1998 Management Stock Option Plan





| |                                     
| | ------------------------------------
| | Faircom Conversion Stock Option Plan

lock-up




| |                                  
| | ---------------------------------
| | 2001 Directors Stock Option Plan



64



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                 
| | --------------------------------
| | 2005 Incentive Compensation Plan





| |                             
| | ----------------------------
| | Employee Stock Purchase Plan





| |                         
| | ------------------------
| | Stock-based Compensation





65



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                        |  |      |          |  |       |  |          |      |  |  |          |  |  |      |          |  |       |  |          |  |  |  |          | 
|----------------------- |  | ---- | -------- |  | ----- |  | -------- | ---- |  |  | -------- |  |  | ---- | -------- |  | ----- |  | -------- |  |  |  | -------- | 
|                        |  | 2005 |          |  | 2004  |  |          | 2003 | 
|                        |  |      |          |  |       |  |          |      | 
|                        |  | ISOs |          |  | NQSOs |  |          | ISOs |  |  | NQSOs    |  |  | ISOs |          |  | NQSOs | 
|                        |  |      |          |  |       |  |          |      |  |  |          |  |  |      |          |  |       | 
|Dividends               |  |      | None     |  |       |  | None     |      |  |  | None     |  |  |      | None     |  |       |  | None     |  |  |  | None     | 
|Volatility              |  |      | 63.5%    |  |       |  | 64.8%    |      |  |  | 60.7%    |  |  |      | 61.0%    |  |       |  | 60.1%    |  |  |  | 60.4%    | 
|Risk-free interest rate |  |      | 3.82%    |  |       |  | 3.75%    |      |  |  | 3.38%    |  |  |      | 3.42%    |  |       |  | 3.11%    |  |  |  | 3.10%    | 
|Expected term           |  |      | 5  years |  |       |  | 5  years |      |  |  | 5  years |  |  |      | 5  years |  |       |  | 5  years |  |  |  | 5  years | 



|                                                 |                      |                      |  |                  |                |  |   |      |      | 
|------------------------------------------------ | -------------------- | -------------------- |  | ---------------- | -------------- |  | - | ---- | ---- | 
|                                                 |                      |                      |  | Weighted Average |               
|                                                 |                      | Shares               |  |                  | Exercise Price | 
|                                                 |                      |                      |  |                  |                | 
|Company options held by employees and Directors: |                      |                      |  |                  |                |  |   |     
|                                                 | At December 31, 2002 |                      |  | 3,082,861        |                |  | $ | 5.97 |     
|                                                 | Granted              |                      |  | 560,750          |                |  | $ | 5.88 |     
|                                                 | Exercised            |                      |  | (135,195         | )              |  | $ | 3.73 |     
|                                                 | Forfeited/expired    |                      |  | (24,500          | )              |  | $ | 6.37 |     
|                                                 |                      |                      |  |                  |                | 
|Company options held by employees and Directors: |                      |                      |  |                  |                |  |   |     
|                                                 | At December 31, 2003 |                      |  | 3,483,916        |                |  | $ | 6.04 |     
|                                                 | Granted              |                      |  | 516,623          |                |  | $ | 6.43 |     
|                                                 | Exercised            |                      |  |                 |                |  |   |     |     
|                                                 | Forfeited/expired    |                      |  | (125,750         | )              |  | $ | 6.96 |     
|                                                 |                      |                      |  |                  |                | 
|Company options held by employees and Directors: |                      |                      |  |                  |                |  |   |     
|                                                 | At December 31, 2004 |                      |  | 3,874,789        |                |  | $ | 6.07 |     
|                                                 | Granted              |                      |  | 561,250          |                |  | $ | 5.36 |     
|                                                 | Exercised            |                      |  | (2,500           | )              |  | $ | 5.00 |     
|                                                 | Forfeited/expired    |                      |  | (163,500         | )              |  | $ | 5.50 |     
|                                                 |                      |                      |  |                  |                | 
|Company options held by employees and Directors: |                      |                      |  |                  |                |  |   |     
|                                                 |                      | At December 31, 2005 |  |                  | 4,270,039      |  |   | $    | 5.94 | 
|                                                 |                      |                      |  |                  |                | 



|               |  |                     |           |             |                     |  |          |       |  |   |        |          |  |       |           |  |  |   |      | 
|-------------- |  | ------------------- | --------- | ----------- | ------------------- |  | -------- | ----- |  | - | ------ | -------- |  | ----- | --------- |  |  | - | ---- | 
|               |  | Options Outstanding |           |             | Options Exercisable | 
|               |  |                     |           |             |                     | 
|               |  |                     |           | Weighted    |                     |  |          |       | 
|               |  |                     |           | Average     |                     |  | Weighted |       |  |   |        | Weighted | 
|               |  |                     |           | Remaining   |                     |  | Average  |       |  |   |        | Average  | 
|               |  |                     |           | Contractual |                     |  | Exercise |       |  |   |        | Exercise | 
|Exercise Price |  | Shares              |           |             | Life (Years)        |  |          | Price |  |   | Shares |          |  | Price |          
|               |  |                     |           |             |                     |  |          |       |  |   |        |          |  |       |          
|$6.13  $7.83  |  |                     | 1,632,323 |             |                     |  | 6.3      |       |  | $ | 7.07   |          |  |       | 1,632,323 |  |  | $ | 7.07 | 
|$5.00  $6.00  |  |                     | 2,637,716 |             |                     |  | 4.8      |       |  | $ | 5.24   |          |  |       | 2,637,716 |  |  | $ | 5.24 | 
|               |  |                     |           |             |                     |  |          |       |  |   |        |          |  |       |          
|               |  |                     | 4,270,039 |             |                     |  |          |       |  |   |        |          |  |       | 4,270,039 |  |  |   |      | 
|               |  |                     |           |             |                     |  |          |       |  |   |        |          |  |       |          

66



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                   
|-- | ------------------
|7. | Earnings Per Share





|                                                                                                                     |                    |                                              |        |   |       |   |        |      |      |   |        |   |      | 
|-------------------------------------------------------------------------------------------------------------------- | ------------------ | -------------------------------------------- | ------ | - | ----- | - | ------ | ---- | ---- | - | ------ | - | ---- | 
|                                                                                                                     |                    | Year Ended December 31,                      |       
|                                                                                                                     |                    |                                              |       
|                                                                                                                     |                    | 2005                                         |        |   | 2004  |   |        | 2003 |     
|                                                                                                                     |                    |                                              |        |   |       |   |        |      |     
|Net (loss) income from continuing operations                                                                         |                    | $                                            | (6,621 | ) |       | $ | 6,443  |      |      | $ | 4,882  |  
|(Loss) income from discontinued operations, net of applicable
    income taxes of $9, $4,422, and $532, respectively |                    |                                              | (18    | ) |       |   | 6,792  |      |      |   | 824    |  
|                                                                                                                     |                    |                                              |        |   |       |   |        |      |     
|Net (loss) income                                                                                                    |                    | $                                            | (6,639 | ) |       | $ | 13,235 |      |      | $ | 5,706  |  
|                                                                                                                     |                    |                                              |        |   |       |   |        |      |     
|Weighted average basic common shares                                                                                 |                    |                                              | 43,214 |   |       |   | 45,780 |      |      |   | 46,515 |  
|Dilutive effect of stock options and warrants                                                                        |                    |                                              |       |   |       |   | 384    |      |      |   | 322    |  
|                                                                                                                     |                    |                                              |        |   |       |   |        |      |     
|Weighted average diluted common shares                                                                               |                    |                                              | 43,214 |   |       |   | 46,164 |      |      |   | 46,837 |  
|Net (loss) income per common share:                                                                                  |                    |                                              |        |   |       |   |        |      |      |   |        |  
|                                                                                                                     | Basic and diluted: |                                              |        |   |       |   |        |      |      |   |        |   |     
|                                                                                                                     |                    | Net (loss) income from continuing operations |        | $ | (0.15 | ) |        | $    | 0.14 |   |        | $ | 0.10 | 
|                                                                                                                     |                    | Discontinued operations                      |        |   | 0.00  |   |        |      | 0.15 |   |        |   | 0.02 | 
|                                                                                                                     |                    |                                              |        |   |       |   |        |      |     
|                                                                                                                     |                    | Net (loss) income                            |        | $ | (0.15 | ) |        | $    | 0.29 |   |        | $ | 0.12 | 
|                                                                                                                     |                    |                                              |        |   |       |   |        |      |     

67



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                     
|-- | ------------------------------------
|8. | Goodwill and Other Intangible Assets





| |                                 
| | --------------------------------
| | Definite-lived Intangible Assets



|                                       |       |                   |       |       |                   |   |       |          |  |   |              |       |  |   |     |       | 
|-------------------------------------- | ----- | ----------------- | ----- | ----- | ----------------- | - | ----- | -------- |  | - | ------------ | ----- |  | - | --- | ----- | 
|                                       |       | December 31, 2005 |       |       | December 31, 2004 |  
|                                       |       |                   |       |       |                   |  
|                                       |       | Gross             |       |       |                   |   | Gross |          |  |  
|                                       |       | Carrying          |       |       | Accumulated       |   |       | Carrying |  |   | Accumulated  |      
|                                       |       | Amount            |       |       | Amortization      |   |       | Amount   |  |   | Amortization |      
|                                       |       |                   |       |       |                   |   |       |          |  |   |              |      
|Non-compete agreements                 |       | $                 | 1,315 |       |                   | $ | 1,081 |          |  | $ | 1,426        |       |  | $ | 685 |      
|Pre-sold advertising contracts         |       |                   |      |       |                   |   |      |          |  |   | 969          |       |  |   | 969 |      
|Sports right and employment agreements |       |                   | 814   |       |                   |   | 277   |          |  |   | 944          |       |  |   | 167 |      
|                                       |       |                   |       |       |                   |   |       |          |  |   |              |      
|                                       | Total |                   | $     | 2,129 |                   |   | $     | 1,358    |  |   | $            | 3,339 |  |   | $   | 1,821 | 
|                                       |       |                   |       |       |                   |   |       |          |  |   |              |      



68



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                   
| | ----------------------------------
| | Indefinite-lived Intangible Assets



|                                |                                                         |   |         |         |  
|------------------------------- | ------------------------------------------------------- | - | ------- | ------- | -
|Balance as of December 31, 2003 |                                                         | $ | 293,369 |        
|                                | Purchase of radio stations                              |   |         | 44,089  |  
|                                | Purchase price adjustments                              |   |         | (944    | )
|                                | Disposition of radio stations                           |   |         | (28,891 | )
|                                | Reclassification of FCC license to assets held for sale |   |         | (25     | )
|                                |                                                         |   |        
|Balance as of December 31, 2004 |                                                         |   | 307,598 |        
|                                | Impairment of FCC licenses                              |   |         | (18,300 | )
|                                | Adjustments                                             |   |         | 2       |  
|                                |                                                         |   |        
|Balance as of December 31, 2005 |                                                         | $ | 289,300 |        
|                                |                                                         |   |        



| |         
| | --------
| | Goodwill



|                                |                                          |          |        |        |  
|------------------------------- | ---------------------------------------- | -------- | ------ | ------ | -
|                                |                                          | Goodwill |       
|                                |                                          |          |       
|Balance as of December 31, 2003 |                                          | $        | 25,649 |       
|                                | Adjustments                              |          |        | (582   | )
|                                | Disposition related goodwill             |          |        | (1,013 | )
|                                | Acquisition related goodwill             |          |        | 8,936  |  
|                                |                                          |          |       
|Balance as of December 31, 2004 |                                          |          | 32,990 |       
|                                | Impairment of goodwill                   |          |        | (2,500 | )
|                                | Adjustment to purchase price allocations |          |        | 246    |  
|                                |                                          |          |       
|Balance as of December 31, 2005 |                                          | $        | 30,736 |       
|                                |                                          |          |       





69



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |             
|-- | ------------
|9. | Income Taxes



|                                 |  |      |        |   |      |   |       |      |  |   |       |  
|-------------------------------- |  | ---- | ------ | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                 |  | 2005 |        |   | 2004 |   |       | 2003 | 
|                                 |  |      |        |   |      |   |       |      | 
|Current federal                  |  | $    | 338    |   |      | $ |      |      |  | $ |      |  
|Current state                    |  |      | (410   | ) |      |   | 298   |      |  |   | 102   |  
|                                 |  |      |        |   |      |   |       |      | 
|Total current                    |  |      | (72    | ) |      |   | 298   |      |  |   | 102   |  
|                                 |  |      |        |   |      |   |       |      | 
|Deferred federal                 |  |      | (3,266 | ) |      |   | 4,156 |      |  |   | 3,299 |  
|Deferred state                   |  |      | 10     |   |      |   | 789   |      |  |   | 483   |  
|                                 |  |      |        |   |      |   |       |      | 
|Total deferred                   |  |      | (3,256 | ) |      |   | 4,945 |      |  |   | 3,782 |  
|                                 |  |      |        |   |      |   |       |      | 
|Valuation allowance              |  |      | 10     |   |      |   | (678  | )    |  |   | (454  | )
|                                 |  |      |        |   |      |   |       |      | 
|Net income tax (benefit) expense |  | $    | (3,318 | ) |      | $ | 4,565 |      |  | $ | 3,430 |  
|                                 |  |      |        |   |      |   |       |      | 





|                          |                                    |                                |   |         |         |   |   |         |         |  
|------------------------- | ---------------------------------- | ------------------------------ | - | ------- | ------- | - | - | ------- | ------- | -
|                          |                                    | 2005                           |   |         | 2004    |  
|                          |                                    |                                |   |         |         |  
|Deferred tax assets:      |                                    |                                |   |         |         |   |   |        
|                          | Net operating loss carryforwards   |                                | $ | 19,257  |         |   | $ | 16,404  |        
|                          | Miscellaneous accruals and credits |                                |   | 525     |         |   |   | 272     |        
|                          | Accounts receivable reserve        |                                |   | 307     |         |   |   | 321     |        
|                          |                                    |                                |   |         |         |  
|                          |                                    | Total deferred tax assets      |   |         | 20,089  |   |   |         | 16,997  |  
|                          |                                    |                                |   |         |         |  
|                          | Valuation allowance                |                                |   | (3,283  | )       |   |   | (3,273  | )      
|                          |                                    |                                |   |         |         |  
|                          | Net deferred tax assets            |                                |   | 16,806  |         |   |   | 13,724  |        
|                          |                                    |                                |   |         |         |  
|Deferred tax liabilities: |                                    |                                |   |         |         |   |   |        
|                          | Property and equipment             |                                |   | (2,274  | )       |   |   | (1,818  | )      
|                          | Hedge liability                    |                                |   | (49     | )       |   |   |        |        
|                          | Intangible assets                  |                                |   | (34,783 | )       |   |   | (35,401 | )      
|                          |                                    |                                |   |         |         |  
|                          |                                    | Total deferred tax liabilities |   |         | (37,106 | ) |   |         | (37,219 | )
|                          |                                    |                                |   |         |         |  
|                          |                                    | Net deferred tax liabilities   |   | $       | (20,300 | ) |   | $       | (23,495 | )
|                          |                                    |                                |   |         |         |  





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REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                           |  |      |       |    |      |  |      |      |  |  |      |  
|------------------------------------------ |  | ---- | ----- | -- | ---- |  | ---- | ---- |  |  | ---- | -
|                                           |  | 2005 |       |    | 2004 |  |      | 2003 | 
|                                           |  |      |       |    |      |  |      |      | 
|Federal tax expense at statutory rate      |  |      | (34.0 | )% |      |  | 34.0 | %    |  |  | 34.0 | %
|Other non-deductible expenses              |  |      | 0.9   |    |      |  | 0.7  |      |  |  | 0.5  |  
|Increase (decrease) of valuation allowance |  |      | 0.1   |    |      |  | (6.2 | )    |  |  | (5.5 | )
|Expiration of net operating losses         |  |      | 0.5   |    |      |  | 3.4  |      |  |  | 7.6  |  
|State tax, net of federal tax benefit      |  |      | 0.8   |    |      |  | 9.0  |      |  |  | 6.6  |  
|Other                                      |  |      | (1.7  | )  |      |  | 0.6  |      |  |  | (1.9 | )
|                                           |  |      |       |    |      |  |      |      | 
|Effective tax rate                         |  |      | (33.4 | )% |      |  | 41.5 | %    |  |  | 41.3 | %
|                                           |  |      |       |    |      |  |      |      | 



|    |                                 
|--- | --------------------------------
|10. | Derivative Financial Instruments





|    |              
|--- | -------------
|11. | Savings Plans



| |                                                           
| | ----------------------------------------------------------
| | Regent Communications, Inc. 401(k) Profit Sharing
    Plan





| |                                                           
| | ----------------------------------------------------------
| | Regent Communications, Inc. Deferred Compensation
    Plan



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REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                            
|--- | ---------------------------
|12. | Other Financial Information



| |                        
| | -----------------------
| | Property and Equipment:



|                              |                            |      |         |        |      |   |         |        | 
|----------------------------- | -------------------------- | ---- | ------- | ------ | ---- | - | ------- | ------ | 
|                              |                            | 2005 |         |        | 2004 |  
|                              |                            |      |         |        |      |  
|Equipment                     |                            | $    | 38,827  |        |      | $ | 37,392  |       
|Furniture and fixtures        |                            |      | 2,454   |        |      |   | 2,361   |       
|Building and improvements     |                            |      | 14,674  |        |      |   | 13,416  |       
|Land and improvements         |                            |      | 4,478   |        |      |   | 4,415   |       
|                              |                            |      |         |        |      |  
|                              |                            |      | 60,433  |        |      |   | 57,584  |       
|Less accumulated depreciation |                            |      | (24,302 | )      |      |   | (20,640 | )     
|                              |                            |      |         |        |      |  
|                              | Net property and equipment |      | $       | 36,131 |      |   | $       | 36,944 | 
|                              |                            |      |         |        |      |  





| |                           
| | --------------------------
| | Other Current Liabilities:



|                              |  |      |       |  |      |   |       | 
|----------------------------- |  | ---- | ----- |  | ---- | - | ----- | 
|                              |  | 2005 |       |  | 2004 |  
|                              |  |      |       |  |      |  
|Accrued interest              |  | $    | 56    |  |      | $ | 141   | 
|Accrued professional fees     |  |      | 106   |  |      |   | 401   | 
|Deferred revenue              |  |      | 343   |  |      |   | 393   | 
|Accrued state and local taxes |  |      | 192   |  |      |   | 177   | 
|Accrued retirement payments   |  |      | 402   |  |      |   |      | 
|Accrued other                 |  |      | 2,089 |  |      |   | 2,598 | 
|                              |  |      |       |  |      |  
|                              |  | $    | 3,188 |  |      | $ | 3,710 | 
|                              |  |      |       |  |      |  

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REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                              
|--- | -----------------------------
|13. | Commitments and Contingencies







|                                            |  |           |       |  |         |   |     | 
|------------------------------------------- |  | --------- | ----- |  | ------- | - | --- | 
|                                            |  | Operating |       |  | Capital |  
|                                            |  | Leases    |       |  | Leases  |  
|                                            |  |           |       |  |         |  
|2006                                        |  | $         | 1,249 |  |         | $ | 83  | 
|2007                                        |  |           | 1,185 |  |         |   | 48  | 
|2008                                        |  |           | 1,088 |  |         |   | 19  | 
|2009                                        |  |           | 614   |  |         |   | 3   | 
|2010                                        |  |           | 451   |  |         |   | 1   | 
|Thereafter                                  |  |           | 1,975 |  |         |   | 4   | 
|                                            |  |           |       |  |         |  
|Total minimum payments                      |  | $         | 6,562 |  |         |   | 158 | 
|                                            |  |           |       |  |         |  
|Amount representing interest                |  |           |       |  |         |   | 5   | 
|                                            |  |           |       |  |         |  
|Present value of net minimum lease payments |  |           |       |  |         | $ | 153 | 
|                                            |  |           |       |  |         |  



73



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REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                             
|--- | --------------------------------------------
|14. | Quarterly Financial Information (Unaudited):



|     |                                                                 |          |   |        |         |  |   |          |  |  |            |        |  |       |   |         |   |  |   |        |  
|---- | --------------------------------------------------------------- | -------- | - | ------ | ------- |  | - | -------- |  |  | ---------- | ------ |  | ----- | - | ------- | - |  | - | ------ | -
|     |                                                                 | 1st      |   |        | 2nd     |  |   | 3rd      |  |  | 4th        |        |  |      
|     |                                                                 | Quarter  |   |        | Quarter |  |   | Quarter  |  |  | Quarter    |        |  |      
|     |                                                                 | ended    |   |        | ended   |  |   | ended    |  |  | ended      |        |  | Total |  
|     |                                                                 | March 31 |   |        | June 30 |  |   | Sept. 30 |  |  | Dec. 31(3) |        |  | Year  |  
|     |                                                                 |          |   |        |         |  |   |          |  |  |            |        |  |       |  
|2005 |                                                                 |          |   |        |         |  |   |          |  |  |            |        |  |       |   |         |   |  |   |       
|     | Net broadcast revenues                                          |          | $ | 18,621 |         |  | $ | 22,728   |  |  | $          | 22,931 |  |       | $ | 21,320  |   |  | $ | 85,600 |  
|     | Operating income (loss)                                         |          |   | 1,497  |         |  |   | 4,891    |  |  |            | 4,190  |  |       |   | (16,864 | ) |  |   | (6,286 | )
|     | Income (loss) from continuing operations                        |          |   | 390    |         |  |   | 2,236    |  |  |            | 1,403  |  |       |   | (10,650 | ) |  |   | (6,621 | )
|     | NET INCOME (LOSS):                                              |          |   | 386    |         |  |   | 2,224    |  |  |            | 1,403  |  |       |   | (10,652 | ) |  |   | (6,639 | )
|     | BASIC AND DILUTED NET INCOME (LOSS) PER COMMON
    SHARE(1)(2): |          |   |        |         |  |   |          |  |  |            |        |  |       |   |         |   |  |   |        |  
|     | Net income (loss) per common share                              |          | $ | 0.01   |         |  | $ | 0.05     |  |  | $          | 0.03   |  |       | $ | (0.26   | ) |  | $ | (0.15  | )
|2004 |                                                                 |          |   |        |         |  |   |          |  |  |            |        |  |       |   |         |   |  |   |       
|     | Net broadcast revenues                                          |          | $ | 17,394 |         |  | $ | 22,227   |  |  | $          | 22,454 |  |       | $ | 22,112  |   |  | $ | 84,187 |  
|     | Operating income                                                |          |   | 1,504  |         |  |   | 4,820    |  |  |            | 5,348  |  |       |   | 3,095   |   |  |   | 14,767 |  
|     | Income from continuing operations                               |          |   | 444    |         |  |   | 2,460    |  |  |            | 2,496  |  |       |   | 1,043   |   |  |   | 6,443  |  
|     | NET INCOME:                                                     |          | $ | 319    |         |  | $ | 2,335    |  |  | $          | 8,060  |  |       | $ | 2,521   |   |  | $ | 13,235 |  
|     | BASIC AND DILUTED NET INCOME PER COMMON SHARE
    (1)(2):       |          |   |        |         |  |   |          |  |  |            |        |  |       |   |         |   |  |   |        |  
|     | Net income per common share                                     |          | $ | 0.01   |         |  | $ | 0.05     |  |  | $          | 0.18   |  |       | $ | 0.06    |   |  | $ | 0.29   |  






|    |                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The sum of the quarterly net income (loss) per share amounts may
    not equal the annual amount reported, as per share amounts are
    computed independently for each quarter.   
|   
|(2) | Despite net income for the first three quarters of 2005 and all
    four quarters in 2004, net income per common share was the same
    for both the basic and diluted calculation.
|   
|(3) | In the fourth quarter of 2005, the Company recorded an
    impairment of its indefinite  lived intangible assets
    of $20.8 million (see Note 8).                               



|    |                                          
|--- | -----------------------------------------
|15. | Recently Issued Accounting Pronouncements



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REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










05-6, 05-6). 05-6


75



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##### Table of Contents



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


05-6 05-6




76



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##### Table of Contents






SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


(In thousands)


|                                        |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |       | 
|--------------------------------------- | ------- | ---------- | - | --------- | ---------- |  |  | ---------- | --- |  | ------------- | - | ---------- | --------- |  | --- | --- |  | - | ----- | 
|                                        |         |            |   | Additions |            |  |  |            |    
|                                        |         |            |   |           |            |  |  |            |    
|                                        |         | Balance at |   |           | Charged to |  |  | Charged to |     |  |               |   | Balance at |          
|                                        |         | Beginning  |   |           | Costs and  |  |  | Other      |     |  |               |   | the End    |          
|                                        |         | of Period  |   |           | Expenses   |  |  | Accounts   |     |  | Deductions(1) |   |            | of Period | 
|                                        |         |            |   |           |            |  |  |            |     |  |               |   |            |           | 
|Allowance for doubtful accounts:        |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |      
|Years ended December 31,                |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |      
|                                        | 2005    |            | $ | 844       |            |  |  | 462        |     |  |               |  |            |           |  | 504 |     |  | $ | 802   | 
|                                        | 2004(8) |            | $ | 868       |            |  |  | 536        |     |  |               |  |            |           |  | 560 |     |  | $ | 844   | 
|                                        | 2003    |            | $ | 854       |            |  |  | 908        |     |  |               |  |            |           |  | 894 |     |  | $ | 868   | 
|Deferred tax asset valuation allowance: |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |      
|Years ended December 31,                |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |      
|                                        | 2005    |            | $ | 3,273     |            |  |  | 57         | (2) |  |               |  |            |           |  | 47  | (3) |  | $ | 3,283 | 
|                                        | 2004    |            | $ | 3,951     |            |  |  | 32         | (4) |  |               |  |            |           |  | 710 | (5) |  | $ | 3,273 | 
|                                        | 2003    |            | $ | 4,405     |            |  |  | 177        | (6) |  |               |  |            |           |  | 631 | (7) |  | $ | 3,951 | 






|    |                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents accounts written off to the reserve.                                                                                                      
|   
|(2) | Represents a valuation allowance recorded for state net
    operating loss carryforwards generated in 2005 and scheduled to
    expire prior to 2017.
|   
|(3) | Represents the release of valuation allowance for federal and
    state net operating loss carryforwards that expired or were
    utilized in 2005.  
|   
|(4) | Represents a valuation allowance recorded for state net
    operating loss carryforwards generated in 2004 and scheduled to
    expire prior to 2017.
|   
|(5) | Represents the release of valuation allowance for federal and
    state net operating loss carryforwards that expired or were
    utilized in 2004.  
|   
|(6) | Represents a valuation allowance recorded for state net
    operating loss carryforwards generated in 2003 and scheduled to
    expire prior to 2017.
|   
|(7) | Represents the release of valuation allowance for federal and
    state net operating loss carryforwards that expired in 2003.                       
|   
|(8) | Includes approximately $75 related to the disposition of the
    Duluth, Minnesota and Erie and Lancaster-Reading, Pennsylvania
    markets.         

77



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##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements With Accountants on
    Accounting and Financial Disclosure.

10-K.


10-K




S-K).


10-K.







|         |                         
|-------- | ------------------------
|Item 9A. | Controls and Procedures.

13a-15e.


13a-15(e) 15d-15(e).









|         |                   
|-------- | ------------------
|Item 9B. | Other Information.



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##### Table of Contents






PART III







|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers Of The Registrant.








|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.

S-K 10-K







|         |                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters.

S-K,


|                                                           |  |                      |           |  |                   |                      |      |                      |  |  |           | 
|---------------------------------------------------------- |  | -------------------- | --------- |  | ----------------- | -------------------- | ---- | -------------------- |  |  | --------- | 
|                                                           |  |                      |           |  |                   | Number of securities |     
|                                                           |  |                      |           |  |                   | remaining available  |     
|                                                           |  | Number of securities |           |  | Weighted average  |                      |      | for issuance under   | 
|                                                           |  | to be issued upon    |           |  | exercise price of |                      |      | equity compensation  | 
|                                                           |  | exercise of          |           |  | outstanding       |                      |      | plans (excluding     | 
|                                                           |  | outstanding options, |           |  | options, warrants |                      |      | securities reflected | 
|                                                           |  | warrants and rights  |           |  | and rights        |                      |      | in column (a))       | 
|                                                           |  | (a)                  |           |  | (b)               |                      |      | (c)                  | 
|                                                           |  |                      |           |  |                   |                      |      |                      | 
|Equity compensation plans approved by security holders     |  |                      | 4,270,039 |  |                   | $                    | 5.94 |                      |  |  | 3,238,339 | 
|Equity compensation plans not approved by security holders |  |                      |          |  |                   |                      |     |                      |  |  |          | 
|                                                           |  |                      |           |  |                   |                      |      |                      | 
|Total                                                      |  |                      | 4,270,039 |  |                   | $                    | 5.94 |                      |  |  | 3,238,339 | 
|                                                           |  |                      |           |  |                   |                      |      |                      | 






|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.








|         |                                        
|-------- | ---------------------------------------
|Item 14. | Principal Accounting Fees and Services.



79



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##### Table of Contents






PART IV







|         |                                         
|-------- | ----------------------------------------
|Item 15. | Exhibits, Financial Statement Schedules.

Financial Statements.


10-K


Financial Statement Schedules.


10-K


Exhibits.


10-K


80



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##### Table of Contents



SIGNATURES






| |                            
| | ---------------------------
| | Regent Communications, Inc.



| |     |                        
| | --- | -----------------------
| | By: | /s/ William L. Stakelin

| |                                      
| | -------------------------------------
| |                                      
| | William L. Stakelin,                 
| | President and Chief Executive Officer





|                                                         |  |                                                                                                                 |  |                |  | 
|-------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                                |  | Title                                                                                                           |  | Date          
|                                                         |  |                                                                                                                 |  |               
|                                                        
|/s/ William L. StakelinWilliam L. Stakelin               |  | President, Chief Executive Officer, and Director (Principal
    Executive Officer)                              |  | March 15, 2006
|                                                        
|/s/ Anthony A.
    VasconcellosAnthony A. Vasconcellos   |  | Executive Vice President and Chief Financial Officer (Principal
    Financial and Principal Accounting Officer) |  | March 15, 2006
|                                                        
|/s/ Andrew J.
    Armstrong, Jr.Andrew J. Armstrong, Jr. |  | Director                                                                                                        |  | March 15, 2006
|                                                        
|/s/ William H. IngramWilliam H. Ingram                   |  | Director                                                                                                        |  | March 15, 2006
|                                                        
|/s/ Terry S. JacobsTerry S. Jacobs                       |  | Director                                                                                                        |  | March 15, 2006
|                                                        
|/s/ Andrew L. Lewis, IVAndrew L. Lewis, IV               |  | Director                                                                                                        |  | March 15, 2006
|                                                        
|/s/ Timothy M. MooneyTimothy M. Mooney                   |  | Director                                                                                                        |  | March 15, 2006
|                                                        
|/s/ William P.
    Sutter, Jr.William P. Sutter, Jr.     |  | Director                                                                                                        |  | March 15, 2006
|                                                        
|/s/ John H. WyantJohn H. Wyant                           |  | Director                                                                                                        |  | March 15, 2006

81



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EXHIBIT INDEX


10-K:


|        |       |                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------- | ----- | ------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |                    
|Number  |       | Exhibit Description
|        |       |                    
|        | 2(a)* |                     |  | Asset Purchase Agreement made by and among Regent
    Communications, Inc. and Brill Media Company L.L.C. and certain
    of its subsidiaries dated August 22, 2002 (excluding
    exhibits not deemed material or filed separately in executed
    form) (previously filed as Exhibit 2.1 to the
    Registrants Form 8-K dated March 11, 2003 and
    incorporated herein by this reference)                                                                                                                                                                                                                                                                                                
|        | 3(a)* |                     |  | Amended and Restated Certificate of Incorporation of Regent
    Communications, Inc., as amended by a Certificate of
    Designation, Number, Powers, Preferences and Relative,
    Participating, Optional and Other Special Rights and the
    Qualifications, Limitations, Restrictions, and Other
    Distinguishing Characteristics of Series G Preferred Stock
    of Regent Communications, Inc., filed January 21, 1999
    (previously filed as Exhibit 3(a) to the Registrants
    Form 10-K for the year ended December 31, 1998 and
    incorporated herein by this reference)                                                                                                    
|        | 3(b)* |                     |  | Certificate of Amendment of Amended and Restated Certificate of
    Incorporation of Regent Communications, Inc. filed with the
    Delaware Secretary of State on November 19, 1999
    (previously filed as Exhibit 3(b) to the Registrants
    Form 10-Q for the quarter ended June 30, 2001 and
    incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                
|        | 3(c)* |                     |  | Certificate of Decrease of Shares Designated as Series G
    Convertible Preferred Stock of Regent Communications, Inc.,
    filed with the Delaware Secretary of State on June 21, 1999
    amending the Amended and Restated Certificate of Incorporation
    of Regent Communications, Inc., as amended (previously filed as
    Exhibit 3(c) to the Registrants Form 10-Q for
    the quarter ended June 30, 1999 and incorporated herein by
    this reference)                                                                                                                                                                                                                          
|        | 3(d)* |                     |  | Certificate of Designation, Number, Powers, Preferences and
    Relative, Participating, Optional and Other Special Rights and
    the Qualifications, Limitations, Restrictions, and Other
    Distinguishing Characteristics of Series H Preferred Stock
    of Regent Communications, Inc., filed with the Delaware
    Secretary of State on June 21, 1999 amending the Amended
    and Restated Certificate of Incorporation of Regent
    Communications, Inc., as amended (previously filed as
    Exhibit 3(d) to the Registrants Form 10-Q for
    the quarter ended June 30, 1999 and incorporated herein by
    this reference)                                                    
|        | 3(e)* |                     |  | Certificate of Decrease of Shares Designated as Series G
    Convertible Preferred Stock of Regent Communications, Inc.,
    filed with the Delaware Secretary of State on August 23,
    1999 amending the Amended and Restated Certificate of
    Incorporation of Regent Communications, Inc., as amended
    (previously filed as Exhibit 3(e) to the Registrants
    Form 10-Q for the quarter ended on September 30, 1999
    and incorporated herein by this reference)                                                                                                                                                                                                                
|        | 3(f)* |                     |  | Certificate of Increase of Shares Designated as Series H
    Convertible Preferred Stock of Regent Communications, Inc.,
    filed with the Delaware Secretary of State on August 23,
    1999 amending the Amended and Restated Certificate of
    Incorporation of Regent Communications, Inc., as amended
    (previously filed as Exhibit 3(f) to the Registrants
    Form 10-Q for the quarter ended on September 30, 1999
    and incorporated herein by this reference)                                                                                                                                                                                                                
|        | 3(g)* |                     |  | Certificate of Designation, Number, Powers, Preferences and
    Relative, Participating, Optional, and Other Special Rights and
    the Qualifications, Limitations, Restrictions, and Other
    Distinguishing Characteristics of Series K Preferred Stock
    of Regent Communications, Inc., filed with the Delaware
    Secretary of State on December 13, 1999 amending the
    Amended and Restated Certificate of Incorporation of Regent
    Communications, Inc., as amended (previously filed as
    Exhibit 3(g) to Amendment No. 1 to the
    Registrants Form S-1 Registration Statement
    No. 333-91703 filed December 29, 1999 and incorporated
    herein by this reference)
|        | 3(h)* |                     |  | Certificate of Amendment of Amended and Restated Certificate of
    Incorporation of Regent Communications, Inc. filed with the
    Delaware Secretary of State on March 13, 2002 (previously
    filed as Exhibit 3(h) to the Registrants
    Form 10-K for the year ended December 31, 2001 and
    incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                  

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##### Table of Contents



|        |         |                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------- | ------- | ------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |         |                    
|Number  |         | Exhibit Description
|        |         |                    
|        | 3(i)*   |                     |  | Amended and Restated By-Laws of Regent Communications, Inc.
    adopted July 27, 2005 (previously filed as
    Exhibit 3(i) to the Registrants Form 10-Q for
    the quarter ended September 30, 2005 and incorporated
    herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 4(a)*   |                     |  | Credit Agreement dated as of June 30, 2003 among Regent
    Broadcasting, Inc., Regent Communications, Inc., Fleet National
    Bank, as Administrative Agent, Fleet National Bank, as Issuing
    Lender, US Bank, National Association, as Syndication Agent,
    Wachovia Bank, National Association and Suntrust Bank, as
    co-Documentation Agents, and the several lenders party thereto
    (previously filed as Exhibit 10.1 to the Registrants
    Form 8-K filed July 1, 2003 and incorporated herein by
    this reference)                                                                                                                                                                                                       
|        | 4(b)*   |                     |  | Amendment and Consent under Credit Agreement dated as of
    December 15, 2004 among Regent Broadcasting, Inc., the
    financial institutions from time to time party to the Credit
    Agreement as lenders thereunder, Fleet National Bank, as the
    administrative agent for the Lenders, US Bank, National
    Association, as the syndication agent for the Lenders, Wachovia
    Bank, National Association, and Suntrust Bank., as
    co-documentation agents for the Lenders                                                                                                                                                                                                                                                        
|        | 4(c)*   |                     |  | Amendment under Credit Agreement dated as of July 12, 2005,
    by and among Regent Broadcasting, LLC, formerly Regent
    Broadcasting, Inc., Regent Communications, Inc., the several
    financial institutions from time to time party to the Credit
    Agreement as lenders thereunder, Bank of America, N.A.
    (successor by merger to Fleet National Bank), as the
    administrative agent for the Lenders, US Bank, National
    Association, as the syndication agent for the Lenders, Wachovia
    Bank, National Association, and Suntrust Bank, as
    co-documentation agents for the Lenders (previously filed as
    Exhibit 4(a) to the Registrants Form 8-K filed
    August 1, 2005 and incorporated herein by reference)
|        | 4(d)*   |                     |  | Rights Agreement dated as of May 19, 2003 between Regent
    Communications, Inc. and Fifth Third Bank (previously filed as
    Exhibit 4.1 to the Registrants Form 8-K filed
    May 20, 2003 and incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|        | 4(e)*   |                     |  | First Amendment to Rights Agreement dated and effective as of
    February 27, 2004 between Regent Communications, Inc.,
    Fifth Third Bank, and Computershare Services, LLC (previously
    filed as Exhibit 4(c) to the Registrants
    Form 10-Q for the quarter ended September 30, 2004 and
    incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                  
|        | 10(a)*# |                     |  | Regent Communications, Inc. 1998 Management Stock Option Plan,
    as amended through May 17, 2001 and restated as of
    October 24, 2002 (previously filed as Exhibit 10(b) to
    the Registrants Form 10-Q for the quarter ended
    September 30, 2002 and incorporated herein by this
    reference)                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 10(b)*# |                     |  | Grant of Incentive Stock Option under the Regent Communications,
    Inc. 1998 Management Stock Option Plan, as amended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10(c)*# |                     |  | Regent Communications, Inc. 2001 Directors Stock
    Option Plan dated May 17, 2001 (previously filed as
    Exhibit 10(b) to the Registrants Form 10-Q for
    the quarter ended June 30, 2001 and incorporated herein by
    this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10(d)*# |                     |  | Grant of Stock Option under the Regent Communications, Inc.
    2001 Directors Stock Option Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10(e)*# |                     |  | Regent Communications, Inc. Employee Stock Purchase Plan, as
    amended on October 24, 2002 and effective January 1,
    2003 (previously filed as Exhibit 10(a) to the
    Registrants Form 10-Q for the quarter ended
    September 30, 2002 and incorporated herein by this
    reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10(f)*# |                     |  | Regent Communications, Inc. Deferred Compensation Plan dated
    July 25, 2002 and effective October 1, 2002
    (previously filed as Exhibit 10(e) to the Registrants
    Form 10-K for the year ended December 31, 2002 and
    incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 10(g)*# |                     |  | Regent Communications, Inc. 2005 Incentive Compensation Plan as
    adopted February 3, 2005 (previously filed as
    Exhibit 4.1 to the Registrants Form S-8
    Registration Statement No. 333-130616 filed
    December 22, 2005 and incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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##### Table of Contents



|        |         |                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------- | ------- | ------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |         |                    
|Number  |         | Exhibit Description
|        |         |                    
|        | 10(h)*# |                     |  | Amendment No. 1 to the Regent Communications, Inc. 2005
    Incentive Compensation Plan, effective as December 14, 2005
    (previously filed as Exhibit 4.2 to the Registrants
    Form S-8 Registration Statement No. 333-130616 filed
    December 22, 2005 and incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        | 10(i)*# |                     |  | Form of Restricted Stock Award pursuant to the Regent
    Communications, Inc. 2005 Incentive Compensation Plan, as
    amended (previously filed as Exhibit 10.3 to the
    Registrants Form 8-K filed January 4, 2006 and
    incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 10(j)*# |                     |  | Separation Agreement and General Release by and between Terry S.
    Jacobs and Regent Communications, Inc. dated September 1,
    2005 (previously filed as Exhibit 10(a) to the
    Registrants Form 8-K filed September 8, 2005 and
    incorporated herein by reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10(k)*# |                     |  | Employment Agreement between Regent Communications, Inc. and
    William L. Stakelin (previously filed as Exhibit 10.1 to
    the Registrants Form 8-K filed January 4, 2006
    and incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|        | 10(l)*# |                     |  | Employment Agreement between Regent Communications, Inc. and
    Anthony A. Vasconcellos (previously filed as Exhibit 10.2
    to the Registrants Form 8-K filed January 4,
    2006 and incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 10(m)#  |                     |  | Schedule of Director Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10(n)*  |                     |  | Stock Purchase Agreement dated June 15, 1998 among Regent
    Communications, Inc., Waller-Sutton Media Partners, L.P., WPG
    Corporate Development Associates V, L.C.C., WPG Corporate
    Development Associates (Overseas) V, L.P., General Electric
    Capital Corporation, River Cities Capital Fund Limited
    Partnership and William H. Ingram (excluding exhibits not deemed
    material or filed separately in executed form) (previously filed
    as Exhibit 4(d) to the Registrants Form 8-K
    filed June 30, 1998 and incorporated herein by this
    reference)                                                                                                                                                                                                   
|        | 10(o)*  |                     |  | Registration Rights Agreement dated June 15, 1998 among
    Regent Communications, Inc., PNC Bank, N.A., Trustee,
    Waller-Sutton Media Partners, L.P., WPG Corporate Development
    Associates V, L.C.C., WPG Corporate Development Associates
    (Overseas) V, L.P., BMO Financial, Inc., General Electric
    Capital Corporation, River Cities Capital Fund Limited
    Partnership, Terry S. Jacobs, William L. Stakelin, William H.
    Ingram, Blue Chip Capital Fund II Limited Partnership,
    Miami Valley Venture Fund L.P. and Thomas Gammon (excluding
    exhibits not deemed material or filed separately in executed
    form) (previously filed as Exhibit 4(e) to the
    Registrants Form 8-K filed June 30, 1998 and
    incorporated herein by this reference)
|        | 10(p)*  |                     |  | Warrant for the Purchase of 650,000 Shares of Common Stock
    issued by Regent Communications, Inc. to Waller-Sutton Media
    Partners, L.P. dated June 15, 1998 (See Note 1 below)
    (previously filed as Exhibit 4(f) to the Registrants
    Form 8-K filed June 30, 1998 and incorporated herein
    by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10(q)*  |                     |  | Stock Purchase Agreement dated June 21, 1999 between Regent
    Communications, Inc. and Waller-Sutton Media Partners, L.P.
    relating to the purchase of 90,909 shares of Regent
    Communications, Inc. Series H convertible preferred stock
    (See Note 2 below) (excluding exhibits not deemed material
    or filed separately in executed form) (previously filed as
    Exhibit 4(aa) to the Registrants Form 10-Q for
    the quarter ended June 30, 1999 and incorporated herein by
    this reference)                                                                                                                                                                                                                                                                   
|        | 10(r)*  |                     |  | Stock Purchase Agreement dated June 21, 1999, among Regent
    Communications, Inc., WPG Corporate Development
    Associates V, L.L.C. and WPG Corporate Development
    Associates V (Overseas), L.P. relating to the purchase of
    1,180,909 and 182,727 shares, respectively, of Regent
    Communications, Inc. Series H convertible preferred stock
    (excluding exhibits not deemed material or filed separately in
    executed form)(previously filed as Exhibit 4(bb) to the
    Registrants Form 10-Q for the quarter ended
    June 30, 1999 and incorporated herein by this reference)                                                                                                                                                                                 

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##### Table of Contents



|        |        |                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | ------ | ------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |        |                    
|Number  |        | Exhibit Description
|        |        |                    
|        | 10(s)* |                     |  | Stock Purchase Agreement dated as of August 31, 1999 among
    Regent Communications, Inc., The Roman Arch Fund L.P. and
    The Roman Arch Fund II L.P. relating to the purchase of
    109,091 and 72,727 shares, respectively, of Regent
    Communications, Inc. Series H convertible preferred stock
    (excluding exhibits not deemed material or filed separately in
    executed form) (previously filed as Exhibit 4(ee) to the
    Registrants Form 10-Q for the quarter ended on
    September 30, 1999 and incorporated herein by this
    reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|        | 10(t)* |                     |  | First Amendment to Registration Rights Agreement dated as of
    August 31, 1999 among Regent Communications, Inc., PNC
    Bank, N.A., as trustee, Waller-Sutton Media Partners, L.P., WPG
    Corporate Development Associates V, L.L.C., WPG Corporate
    Development Associates (Overseas) V, L.P., BMO Financial,
    Inc., General Electric Capital Corporation, River Cities Capital
    Fund Limited Partnership, Terry S. Jacobs, William L.
    Stakelin, William H. Ingram, Blue Chip Capital Fund II
    Limited Partnership, Miami Valley Venture Fund L.P. and
    Thomas P. Gammon (excluding exhibits not deemed material or
    filed separately in executed form) (previously filed as
    Exhibit 4(gg) to the Registrants Form 10-Q for
    the quarter ended on September 30, 1999 and incorporated
    herein by this reference)                                                                                                                                                             
|        | 10(u)* |                     |  | Second Amendment to Registration Rights Agreement dated as of
    December 13, 1999, among Regent Communications, Inc., Terry
    S. Jacobs, William L. Stakelin, Blue Chip Capital Fund II
    Limited Partnership, Blue Chip Capital Fund III Limited
    Partnership, Miami Valley Venture Fund, L.P., PNC Bank, N.A., as
    trustee, PNC Bank, N.A., Custodian, Waller-Sutton Media
    Partners, L.P., River Cities Capital Fund Limited
    Partnership, Mesirow Capital Partners VII, WPG Corporate
    Development Associates V, L.L.C., WPG Corporate Development
    Associates V (Overseas) L.P., General Electric Capital
    Corporation, William H. Ingram, The Roman Arch Fund L.P.,
    The Roman Arch Fund II L.P. and The Prudential Insurance
    Company of America (previously filed as Exhibit 4(hh) to
    Amendment No. 1 to the Registrants Form S-1
    Registration Statement No. 333-91703 filed
    December 29, 1999 and incorporated herein by this reference)                      
|        | 10(v)* |                     |  | Third Amended and Restated Stockholders Agreement dated as
    of December 13, 1999, among Regent Communications, Inc.,
    Terry S. Jacobs, William L. Stakelin, Blue Chip Capital
    Fund II Limited Partnership, Blue Chip Capital
    Fund III Limited Partnership, Miami Valley Venture Fund,
    L.P., PNC Bank, N.A., as trustee, PNC Bank, N.A., Custodian,
    Waller-Sutton Media Partners, L.P., River Cities Capital
    Fund Limited Partnership, Mesirow Capital Partners VII, WPG
    Corporate Development Associates V, L.L.C., WPG Corporate
    Development Associates V (Overseas) L.P., General Electric
    Capital Corporation, William H. Ingram, Joel M. Fairman, The
    Roman Arch Fund L.P., The Roman Arch Fund II L.P. and
    the Prudential Insurance Company of America (previously filed as
    Exhibit 4(ii) to Amendment No. 1 to the
    Registrants Form S-1 Registration Statement
    No. 333-91703 filed December 29, 1999 and incorporated
    herein by this reference)
|        | 10(w)* |                     |  | Stock Purchase Agreement dated as of November 24, 1999,
    between Regent Communications, Inc. and Blue Chip Capital
    Fund III Limited Partnership (see Note 3 below)
    (previously filed as Exhibit (jj) to Amendment
    No. 1 to the Registrants Form S-1 Registration
    Statement filed December 29, 1999 and incorporated herein
    by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10(x)* |                     |  | Third Amendment to Registration Rights Agreement, dated
    August 28, 2001, among Regent Communications, Inc. and the
    Stockholders who are signatories thereto (previously filed as
    Exhibit 10(b) to the Registrants Form 10-Q for
    the quarter ended September 30, 2001 and incorporated
    herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | 10(y)* |                     |  | Fourth Amendment to Registration Rights Agreement, dated as of
    November 26, 2001, among Regent Communications, Inc. and
    the Stockholders who are signatories thereto (previously filed
    as Exhibit 10(t) to the Registrants Form 10-K
    for the year ended December 31, 2001 and incorporated
    herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|        | 10(z)* |                     |  | Registration Rights Agreement dated as of January 7, 2002,
    between Regent Communications, Inc. and ComCorp of Lafayette,
    Inc. (previously filed as Exhibit 10(u) to the
    Registrants Form 10-K for the year ended
    December 31, 2001 and incorporated herein by this reference)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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##### Table of Contents



|        |         |                     |  |                                                                                                                                                                                                                                                                                                        
|------- | ------- | ------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |         |                    
|Number  |         | Exhibit Description
|        |         |                    
|        | 10(aa)* |                     |  | Registration Rights Agreement dated as of January 7, 2002
    between Regent Communications, Inc. and Abbeville Broadcasting
    Service, Inc. (previously filed as Exhibit 10(v) to the
    Registrants Form 10-K for the year ended
    December 31, 2001 and incorporated herein by this reference)
|        | 16*     |                     |  | Letter regarding change in Independent Registered Public
    Accounting Firm (previously filed as Exhibit 16 to the
    Registrants Form 10-K for the year ended
    December 31, 2004 and incorporated herein by this reference)                                                                     
|        | 21      |                     |  | Subsidiaries of Registrant                                                                                                                                                                                                                                                                             
|        | 23.1    |                     |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                               
|        | 23.2    |                     |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                               
|        | 31(a)   |                     |  | Chief Executive Officer Rule 13a-14(a)/15d-14(a)
    Certification                                                                                                                                                                                                                                     
|        | 31(b)   |                     |  | Chief Financial Officer Rule 13a-14(a)/15d-14(a)
    Certification                                                                                                                                                                                                                                     
|        | 32(a)   |                     |  | Chief Executive Officer Section 1350 Certification                                                                                                                                                                                                                                                     
|        | 32(b)   |                     |  | Chief Financial Officer Section 1350 Certification                                                                                                                                                                                                                                                     






|  |                                                                           
|- | --------------------------------------------------------------------------
|* | Incorporated by reference.                                                
| 
|# | Constitutes a management contract or compensatory plan or
    arrangement.





| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. Six substantially identical warrants for the purchase of
    shares of Registrants common stock were initially issued,
    of which the following remain outstanding:

|                                                            |  |        |         | 
|----------------------------------------------------------- |  | ------ | ------- | 
|                                                            |  | Shares |        
|                                                            |  |        |        
|Waller-Sutton Media Partners, L.P.                          |  |        | 650,000 | 
|WPG Corporate Development Associates V, L.L.C               |  |        | 112,580 | 
|WPG Corporate Development Associates (Overseas) V,
    L.P. |  |        | 17,420  | 
|William H. Ingram                                           |  |        | 10,000  | 



| |                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. Two substantially identical stock purchase agreements
    were entered into for the purchase of Series H convertible
    preferred stock as follows:

|                                              |  |  |                | 
|--------------------------------------------- |  |  | -------------- | 
|Blue Chip Capital Fund II Limited Partnership |  |  | 363,636 shares | 
|PNC Bank, N.A., as trustee                    |  |  | 181,818 shares | 



| |                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3. Four substantially identical stock purchase agreements
    were entered into for the purchase of Series K convertible
    preferred stock as follows:

|                                                                                                               |  |  |                  | 
|-------------------------------------------------------------------------------------------------------------- |  |  | ---------------- | 
|WPG Corporate Development Associates V, L.L.C. and WPG
    Corporate Development Associates V (Overseas), L.P. |  |  | 181,818 shares   | 
|PNC Bank, N.A., Custodian                                                                                      |  |  | 181,818 shares   | 
|Mesirow Capital Partners VII                                                                                   |  |  | 818,181 shares   | 
|The Prudential Insurance Company of America                                                                    |  |  | 1,000,000 shares | 

E-5