##### 









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, 2004 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)


þ o


o


þ o






DOCUMENTS INCORPORATED BY REFERENCE












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REGENT COMMUNICATIONS, INC.


INDEX TO ANNUAL REPORT


ON FORM 10-K


|         |  |                                                                                                                     |  |      |    | 
|-------- |  | ------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|         |  |                                                                                                                     |  | Page |   
|         |  |                                                                                                                     |  |      |   
|Part I  
|Item 1   |  | Business                                                                                                            |  |      | 2  | 
|Item 2   |  | Properties                                                                                                          |  |      | 19 | 
|Item 3   |  | Legal Proceedings                                                                                                   |  |      | 19 | 
|Item 4   |  | Submission of Matters to a Vote of Security Holders                                                                 |  |      | 20 | 
|        
|Part II 
|Item 5   |  | Market for Registrants Common Equity and Related
    Stockholder Matters and Issuer Purchases of Equity Securities |  |      | 21 | 
|Item 6   |  | Selected Financial Data                                                                                             |  |      | 22 | 
|Item 7   |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                           |  |      | 23 | 
|Item 7A  |  | Quantitative and Qualitative Disclosures about Market Risk                                                          |  |      | 40 | 
|Item 8   |  | Financial Statements and Supplementary Data                                                                         |  |      | 41 | 
|Item 9   |  | Changes in and Disagreements with Accountants on Accounting and
    Financial Disclosure                            |  |      | 81 | 
|Item 9A  |  | Controls and Procedures                                                                                             |  |      | 81 | 
|Item 9B  |  | Other Information                                                                                                   |  |      | 81 | 
|        
|Part III
|Item 10  |  | Directors and Executive Officers of the Registrant                                                                  |  |      | 82 | 
|Item 11  |  | Executive Compensation                                                                                              |  |      | 82 | 
|Item 12  |  | Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters                  |  |      | 82 | 
|Item 13  |  | Certain Relationships and Related Transactions                                                                      |  |      | 82 | 
|Item 14  |  | Principal Accountant Fees and Services                                                                              |  |      | 82 | 
|        
|Part IV 
|Item 15  |  | Exhibits and Financial Statement Schedules                                                                          |  |      | 83 | 









1



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##### 



PART I


Item 1.     Business.


General Development of Business


Investing in Radio 2004 Market Report,








| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a greater use of radio advertising compared to the national
    average;                                                                                    
|
| |  | substantial 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
    stations 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 Acquisitions and Dispositions




2



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##### 



2004 Acquisitions


|                                                                |  |                          |                 |        |          |  |   |                |       |                                     |               |      |      |           |  |  |          |  |  | 
|--------------------------------------------------------------- |  | ------------------------ | --------------- | ------ | -------- |  | - | -------------- | ----- | ----------------------------------- | ------------- | ---- | ---- | --------- |  |  | -------- |  |  | 
|                                                                |  |                          |                 |        |          |  |   | Purchase       |       |                                     |              
|                                                                |  |                          |                 | No. of |          |  |   |                | Price |                                     |               | Date |     
|Seller                                                          |  | Market                   |                 |        | Stations |  |   | Call Letters   |       |                                     | (in millions) |      |      | Completed | 
|                                                                |  |                          |                 |        |          |  |   |                |       |                                     |               |      |      |           | 
|Clear Channel Broadcasting, Inc. and its affiliates             |  |                          | Evansville, IN  |        |          |  | 5 |                |       | WYNG-FMWDKS-FMWJLT-FMWGBF-FMWGBF-AM |               | $    | 8.0  | (1)       |  |  | 1/28/04  | 
|Citadel Broadcasting Company and Livingston County Broadcasters |  |                          | Bloomington, IL |        |          |  | 5 |                |       | WBNQ-FMWBWN-FMWJBC-AMWTRX-FMWJEZ-FM |               | $    | 43.0 | (2)       |  |  | 7/29/04  | 
|AGM-Nevada, L.L.C.                                              |  | Ft. Collins- Greeley, CO |                 |        | 2        |  |   | KARS-FMKKPL-FM |       |                                     |               | $    | 7.6  |           |  |  | 11/15/04 | 

2004 Dispositions


|                                                                |  |                        |            |        |          |  |   |                |            |                              |               |      |      |           |  |  |         |  |  | 
|--------------------------------------------------------------- |  | ---------------------- | ---------- | ------ | -------- |  | - | -------------- | ---------- | ---------------------------- | ------------- | ---- | ---- | --------- |  |  | ------- |  |  | 
|                                                                |  |                        |            | No. of |          |  |   |                | Sale Price |                              |               | Date |     
|Purchaser                                                       |  | Market                 |            |        | Stations |  |   | Call Letters   |            |                              | (in millions) |      |      | Completed | 
|                                                                |  |                        |            |        |          |  |   |                |            |                              |               |      |      |           | 
|Clear Channel Broadcasting, Inc. and its affiliates             |  |                        | Duluth, MN |        |          |  | 4 |                |            | KKCB-FMKLDJ-FMKBMX-FMWEBC-AM |               | $    | 5.3  | (1)       |  |  | 1/28/04 | 
|Citadel Broadcasting Company and Livingston County Broadcasters |  | Lancaster- Reading, PA |            |        | 2        |  |   | WIOV-AMWIOV-FM |            |                              |               | $    | 39.5 | (2)       |  |  | 7/29/04 | 
|                                                                |  |                        | Erie, PA   |        |          |  | 4 |                |            | WRIE-AMWXKC-FMWXTA-FMWQHZ-FM |               |      |      |           |  |  |         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | We acquired substantially all the assets of five radio stations
    in Evansville, Indiana, valued at $8.0 million, in exchange
    for our four stations in Duluth, Minnesota, valued at
    $5.3 million, and the payment by us of $2.7 million in cash.                                                                                                                                                                                        
|   
|(2) | We acquired substantially all the assets of three radio stations
    and the common stock of two stations in Bloomington, Illinois,
    valued at $43.0 million, in exchange for our six stations
    in Lancaster-Reading and Erie, Pennsylvania, valued at
    approximately $39.5 million, and the payment by us of
    approximately $3.7 million in cash. We recognized a pre-tax
    gain on the transaction of approximately $11.6 million.

Pending Transaction




Acquisition Strategy




3



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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.



4



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##### 



Operating Strategy




Ownership of Strong Radio Station Clusters.




Aggressive Sales and Marketing.


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.


5



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##### 



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.                                                              
|
| |  | 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
    2004 Market Report, published by BIA Publications, Inc.                      
|
| |  | We obtained all audience share information from the Fall 2004
    Radio Market Report published by The Arbitron Company. 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        |  |  |  | 19.0 | 
|                     | WQBJ(FM)  |      |     |         |             |         | Rock               |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                     | WQBK(FM)  |      |     |         |             |         | Rock               |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                     | WABT(FM)  |      |     |         |             |         | Hot AC             |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WGNA(FM)  |      |     |         |             |         | Country            |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WTMM(AM)  |      |     |         |             |         | Sports             |         |        | M 35+   |         |     |          |  |  |  |      |  | 
|Bloomington, IL      |           |      | 235 |         |             |         |                    |         |        |         |         |     | 1        |  |  |  | 43.5 | 
|                     | WJBC (AM) |      |     |         |             |         | News/Talk          |         |        | A 35-54 |         |     |          |  |  |  |      |  | 
|                     | WBNQ (FM) |      |     |         |             |         | Hot AC             |         |        | 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 |         |             |         |                    |         |        |         |         |     | 1        |  |  |  | 20.4 | 
|                     | 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 |         |     |          |  |  |  |      |  | 

6



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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    | 
|                        |          |      |     |         |             |         |                         |         |        |         |         |     |          | 
|El Paso, TX             |          |      | 70  |         |             |         |                         |         |        |         |         |     | 2        |  |  |  | 11.1 | 
|                        | KSII(FM) |      |     |         |             |         | Hot Adult Contemporary  |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                        | KLAQ(FM) |      |     |         |             |         | Rock                    |         |        | M 18-49 |         |     |          |  |  |  |      |  | 
|                        | KROD(AM) |      |     |         |             |         | News/Talk               |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Evansville, IN          |          |      | 155 |         |             |         |                         |         |        |         |         |     | 2        |  |  |  | 41.0 | 
|                        | 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+   |         |     |          |  |  |  |      |  | 
|Flint, MI               |          |      | 119 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 26.5 | 
|                        | 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        |  |  |  | 14.9 | 
|                        | KUAD(FM) |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                        | KTRR(FM) |      |     |         |             |         | Adult Contemporary      |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                        | KKQZ(FM) |      |     |         |             |         | Classic Rock            |         |        | M 25-54 |         |     |          |  |  |  |      |  | 
|                        | KKPL(FM) |      |     |         |             |         | Alternative             |         |        | A 18-34 |         |     |          |  |  |  |      |  | 
|                        | KARS(FM) |      |     |         |             |         | Oldies                  |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Grand Rapids, MI        |          |      | 66  |         |             |         |                         |         |        |         |         |     | 3        |  |  |  | 13.1 | 
|                        | 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        |  |  |  | 34.7 | 
|                        | 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 |         |     |          |  |  |  |      |  | 

7



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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    | 
|                     |           |      |     |         |             |         |                         |         |        |         |         |     |          | 
|Peoria, IL           |           |      | 135 |         |             |         |                         |         |        |         |         |     | 2        |  |  |  | 18.9 | 
|                     | 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 |         |     |          |  |  |  |      |  | 
|Redding, CA          |           |      | 215 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 42.1 | 
|                     | 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        |  |  |  | 28.5 | 
|                     | 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        |  |  |  | 38.3 | 
|                     | WODZ(FM)  |      |     |         |             |         | Oldies                  |         |        | A 35-54 |         |     |          |  |  |  |      |  | 
|                     | WLZW(FM)  |      |     |         |             |         | Adult Contemporary      |         |        | W 25-54 |         |     |          |  |  |  |      |  | 
|                     | WFRG(FM)  |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WRUN(AM)# |      |     |         |             |         | Sports                  |         |        | M 35+   |         |     |          |  |  |  |      |  | 
|                     | WIBX(AM)  |      |     |         |             |         | News/Talk               |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|Watertown, NY        |           |      | 257 |         |             |         |                         |         |        |         |         |     | 1        |  |  |  | 38.4 | 
|                     | WCIZ(FM)  |      |     |         |             |         | Classic Hits            |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WFRY(FM)  |      |     |         |             |         | Country                 |         |        | A 25-54 |         |     |          |  |  |  |      |  | 
|                     | WTNY(AM)  |      |     |         |             |         | Talk                    |         |        | A 35+   |         |     |          |  |  |  |      |  | 
|                     | WNER(AM)  |      |     |         |             |         | ESPN                    |         |        | M 35+   |         |     |          |  |  |  |      |  | 






| |                                                                                                                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The symbol # indicates a station that we have
    entered into an agreement to sell. The completion of each
    pending disposition is subject to certain conditions, including
    governmental approvals. There can be no assurance that these
    conditions will be satisfied in any particular case.

Advertising Sales




8



---



##### 













| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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






9



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##### 





Federal Regulation of Radio Broadcasting






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.



10



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##### 





License Grant and Renewal.








11



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##### 





|                        |  |                      |  |       |    |  |         |  |     |           |  |            |             |  |     |         |           |  |  |  |          | 
|----------------------- |  | -------------------- |  | ----- | -- |  | ------- |  | --- | --------- |  | ---------- | ----------- |  | --- | ------- | --------- |  |  |  | -------- | 
|                        |  |                      |  |       |    |  |         |  |     |           |  | 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  |  |  |  | 12/01/05 | 
|                        |  | KQPT(FM)             |  |       | B  |  |         |  | 193 |           |  |            | 28.0        |  |     |         | 107.5 MHz |  |  |  | 12/01/05 | 
|                        |  | KALF(FM)             |  |       | B  |  |         |  | 386 |           |  |            | 7.0         |  |     |         | 95.7 MHz  |  |  |  | 12/01/05 | 
|                        |  | KZAP(FM)             |  |       | B1 |  |         |  | 393 |           |  |            | 1.5         |  |     |         | 96.7 MHz  |  |  |  | 12/01/05 | 
|                       
|El Paso, TX             |  | KSII(FM)             |  |       | C  |  |         |  | 433 |           |  |            | 98.0        |  |     |         | 93.1 MHz  |  |  |  | 08/01/05 | 
|                        |  | KLAQ(FM)             |  |       | C  |  |         |  | 424 |           |  |            | 88.0        |  |     |         | 95.5 MHz  |  |  |  | 08/01/05 | 
|                        |  | KROD(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 5.0         |  |     |         | 600 kHz   |  |  |  | 08/01/05 | 
|                       
|Evansville, IN          |  | WKDQ(FM)             |  |       | C  |  |         |  | 300 |           |  |            | 98.0        |  |     |         | 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  |  |  |  | 04/01/05 | 
|                        |  | KTRR(FM)             |  |       | C2 |  |         |  | 125 |           |  |            | 50.0        |  |     |         | 102.5 MHz |  |  |  | 04/01/05 | 
|                        |  | KKQZ(FM)             |  |       | C3 |  |         |  | 168 |           |  |            | 8.7         |  |     |         | 94.3 MHz  |  |  |  | 04/01/05 | 
|                        |  | KKPL(FM)             |  |       | C2 |  |         |  | 150 |           |  |            | 50.0        |  |     |         | 99.9 MHz  |  |  |  | 10/01/05 | 
|                        |  | KARS(FM)             |  |       | C  |  |         |  | 372 |           |  |            | 100.0       |  |     |         | 102.9 MHz |  |  |  | 10/01/05 | 

12



---



##### 



|                 |  |                      |  |       |    |  |         |  |     |           |  |            |              |  |     |         |           |  |  |  |          | 
|---------------- |  | -------------------- |  | ----- | -- |  | ------- |  | --- | --------- |  | ---------- | ------------ |  | --- | ------- | --------- |  |  |  | -------- | 
|                 |  |                      |  |       |    |  |         |  |     |           |  | Expiration |             
|                 |  |                      |  |       |    |  |         |  |     |           |  | Date of    |             
|                 |  |                      |  | FCC   |    |  | HAAT in |  |     | Power in  |  |            |              |  | FCC |        
|Market           |  | Station Call Letters |  | Class |    |  | Meters  |  |     | Kilowatts |  |            | Frequency    |  |     | License |          
|                 |  |                      |  |       |    |  |         |  |     |           |  |            |              |  |     |         |          
|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  |           |  |            | 3.50         |  |     |         | 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 |           |  |            | 97.0         |  |     |         | 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 | 
|                
|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 |  |  |  | 12/01/05 | 
|                 |  | KNNN(FM)             |  |       | C2 |  |         |  | 465 |           |  |            | 1.6          |  |     |         | 99.3 MHz  |  |  |  | 12/01/05 | 
|                 |  | KQMS(AM)             |  |       | C  |  |         |  | N/A |           |  |            | 1.0          |  |     |         | 1400 kHz  |  |  |  | 12/01/05 | 
|                 |  | KSHA(FM)             |  |       | C  |  |         |  | 475 |           |  |            | 100.0        |  |     |         | 104.3 MHz |  |  |  | 12/01/05 | 
|                 |  | KRDG(FM)             |  |       | C1 |  |         |  | 379 |           |  |            | 28.0         |  |     |         | 105.3 MHz |  |  |  | 12/01/05 | 
|                 |  | KNRO(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 10.0 daytime |  |     |         | 1670 kHz  |  |  |  | 12/01/05 | 
|                 |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night    |  |     |         |           |  |  |  |          | 
|                
|St. Cloud, MN    |  | KMXK(FM)             |  |       | C2 |  |         |  | 150 |           |  |            | 50.0         |  |     |         | 94.9 MHz  |  |  |  | 04/01/05 | 
|                 |  | WJON(AM)             |  |       | C  |  |         |  | N/A |           |  |            | 1.0          |  |     |         | 1240 kHz  |  |  |  | 04/01/05 | 
|                 |  | WWJO(FM)             |  |       | C  |  |         |  | 305 |           |  |            | 97.0         |  |     |         | 98.1 MHz  |  |  |  | 04/01/05 | 
|                 |  | KKSR(FM)             |  |       | C2 |  |         |  | 138 |           |  |            | 50.0         |  |     |         | 96.7 MHz  |  |  |  | 04/01/05 | 
|                 |  | KLZZ(FM)             |  |       | C3 |  |         |  | 126 |           |  |            | 9.0          |  |     |         | 103.7 MHz |  |  |  | 04/01/05 | 
|                 |  | KXSS(AM)             |  |       | B  |  |         |  | N/A |           |  |            | 2.5 daytime  |  |     |         | 1390 kHz  |  |  |  | 04/01/05 | 
|                 |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night    |  |     |         |           |  |  |  |          | 

13



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##### 



|               |  |                      |  |       |    |  |         |  |     |           |  |            |             |  |     |         |           |  |  |  |          | 
|-------------- |  | -------------------- |  | ----- | -- |  | ------- |  | --- | --------- |  | ---------- | ----------- |  | --- | ------- | --------- |  |  |  | -------- | 
|               |  |                      |  |       |    |  |         |  |     |           |  | Expiration |            
|               |  |                      |  |       |    |  |         |  |     |           |  | Date of    |            
|               |  |                      |  | FCC   |    |  | HAAT in |  |     | Power in  |  |            |             |  | FCC |        
|Market         |  | Station Call Letters |  | Class |    |  | Meters  |  |     | Kilowatts |  |            | Frequency   |  |     | License |          
|               |  |                      |  |       |    |  |         |  |     |           |  |            |             |  |     |         |          
|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 | 
|               |  | WRUN(AM)#            |  |       | B  |  |         |  | N/A |           |  |            | 5.0 daytime |  |     |         | 1150 kHz  |  |  |  | 06/01/06 | 
|               |  |                      |  |       |    |  |         |  |     |           |  |            | 1.0 night   |  |     |         |           |  |  |  |          | 
|              
|Watertown, NY  |  | WCIZ(FM)             |  |       | A  |  |         |  | 100 |           |  |            | 6.0         |  |     |         | 93.3 MHz  |  |  |  | 06/01/06 | 
|               |  | WFRY(FM)             |  |       | C1 |  |         |  | 145 |           |  |            | 97.0        |  |     |         | 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 |  |     |         |           |  |  |  |          | 






|  |                                                                                                        
|- | -------------------------------------------------------------------------------------------------------
|# | Stations indicated with a pound sign (#) are subject to disposal
    by us under an existing agreement.

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.



Multiple Ownership Rules.




| |   |                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in markets with 45 or more commercial 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 commercial radio stations, ownership is
    limited to seven commercial stations, no more than four of which
    can be either AM or FM;  

14



---



##### 





| |   |                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | in markets with 15 to 29 commercial 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 commercial 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.                                                                                          









15



---



##### 







Alien Ownership Rules.


Time Brokerage.






16



---



##### 



Programming and Operation.








Proposed and Recent Changes.




| |   |                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;                                                                                                                                                    
|
| |  | proposals to allow telephone or cable television companies to
    deliver audio and video programming to the home through existing
    phone, cable television or other communication lines; and
|
| |  | proposals to limit the tax deductibility of advertising expenses
    by advertisers.                                                                                                            

17



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##### 



tm tm tm tm






Federal Antitrust Considerations.








18



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##### 





www.regentcomm.com http://www.sec.gov




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









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





19



---



##### 









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



20



---



##### 



PART II




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



|               |  |      |      |  |     |   |      | 
|-------------- |  | ---- | ---- |  | --- | - | ---- | 
|               |  | High |      |  | Low |  
|               |  |      |      |  |     |  
|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 | 
|2003           |  |      |      |  |     |   |      | 
|               |  |      |      |  |     |  
|First quarter  |  | $    | 6.65 |  |     | $ | 4.50 | 
|Second quarter |  | $    | 6.62 |  |     | $ | 4.71 | 
|Third quarter  |  | $    | 7.05 |  |     | $ | 4.97 | 
|Fourth quarter |  | $    | 7.10 |  |     | $ | 5.80 | 





|                                     |  |           |   |  |                |  |                  |                     |  |                 |                   |  |  |   |        | 
|------------------------------------ |  | --------- | - |  | -------------- |  | ---------------- | ------------------- |  | --------------- | ----------------- |  |  | - | ------ | 
|                                     |  |           |   |  |                |  |                  | 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, 2004  October 31, 2004   |  |           | 0 |  |                |  |                 |                     |  |                 | 0                 |  |  | $ | 20,000 | 
|November 1, 2004  November 30, 2004 |  |           | 0 |  |                |  |                 |                     |  |                 | 0                 |  |  | $ | 20,000 | 
|December 1, 2004  December 31, 2004 |  |           | 0 |  |                |  |                 |                     |  |                 | 0                 |  |  | $ | 20,000 | 
|Total                                |  |           | 0 |  |                |  |                 |                     |  |                 | 0                 |  |  | $ | 20,000 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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. In
    October 2002, the Board increased the amount of stock the
    Company could buy back by approximately $6.7 million. Since
    inception of the stock buyback program and through
    December 31, 2004, approximately $16.7 million of
    common stock was repurchased, exhausting the amount authorized
    under the plan. At its July 2004 meeting, the Companys
    Board of Directors increased the amount authorized under the
    repurchase plan by an additional $20.0 million. The
    Companys lenders have approved repurchases of up to
    $40.0 million, two times the amount currently approved by
    the Companys Board of Directors.

21



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##### 





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



SELECTED CONSOLIDATED FINANCIAL DATA


(In thousands, except per share data)


|                                                                                                               |                  |                            |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |         |        | 
|-------------------------------------------------------------------------------------------------------------- | ---------------- | -------------------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ |  | ---- | ------ | ------ |  | - | ------- | ------ | 
|                                                                                                               |                  | Year Ended December 31,(5) |       
|                                                                                                               |                  |                            |       
|                                                                                                               |                  | 2004                       |        |        | 2003 |   |        | 2002   |  |   | 2001   |        |  | 2000 |       
|                                                                                                               |                  |                            |        |        |      |   |        |        |  |   |        |        |  |      |       
|OPERATING RESULTS(1):                                                                                          |                  |                            |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |         |       
|Net broadcast revenues                                                                                         |                  | $                          | 84,187 |        |      | $ | 73,161 |        |  | $ | 64,606 |        |  | $    | 50,995 |        |  | $ | 41,208  |       
|Operating income (loss)                                                                                        |                  |                            | 14,767 |        |      |   | 11,866 |        |  |   | 8,526  |        |  |      | (3,025 | )      |  |   | 399     |       
|Income (loss) from continuing operations before income
    taxes and cumulative effect of accounting change(2) |                  |                            | 11,008 |        |      |   | 8,312  |        |  |   | 6,058  |        |  |      | (2,163 | )      |  |   | 13,769  |       
|Net income (loss) from continuing operations before
    cumulative effect of accounting change                 |                  |                            | 6,443  |        |      |   | 4,882  |        |  |   | (822   | )      |  |      | (1,558 | )      |  |   | 13,801  |       
|Net income (loss) from discontinued operations                                                                 |                  |                            | 6,792  |        |      |   | 824    |        |  |   | 480    |        |  |      | (155   | )      |  |   | 51      |       
|Cumulative effect of accounting change, net of income taxes(3)                                                 |                  |                            |       |        |      |   |       |        |  |   | (6,138 | )      |  |      |       |        |  |   |        |       
|Preferred stock dividend requirements                                                                          |                  |                            |       |        |      |   |       |        |  |   |       |        |  |      |       |        |  |   | (629    | )     
|Preferred stock accretion                                                                                      |                  |                            |       |        |      |   |       |        |  |   |       |        |  |      |       |        |  |   | (26,611 | )     
|Income (loss) from continuing operations applicable to
    common shares                                       |                  |                            | 6,443  |        |      |   | 4,882  |        |  |   | (822   | )      |  |      | (1,558 | )      |  |   | (13,439 | )     
|Income (loss) from discontinued operations applicable to
    common shares                                     |                  |                            | 6,792  |        |      |   | 824    |        |  |   | 480    |        |  |      | (155   | )      |  |   | 51      |       
|Net income (loss)                                                                                              |                  | $                          | 13,235 |        |      | $ | 5,706  |        |  | $ | (6,480 | )      |  | $    | (1,713 | )      |  | $ | (13,388 | )     
|BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE:                                                          |                  |                            |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |         |       
|Income (loss) from continuing operations before cumulative
    effect of accounting change                     |                  | $                          | 0.14   |        |      | $ | 0.10   |        |  | $ | (0.02  | )      |  | $    | (0.05  | )      |  | $ | (0.42   | )     
|Income (loss) from discontinued operations                                                                     |                  |                            | 0.15   |        |      |   | 0.02   |        |  |   | 0.01   |        |  |      |       |        |  |   |        |       
|Cumulative effect of accounting change                                                                         |                  |                            |       |        |      |   |       |        |  |   | (0.14  | )      |  |      |       |        |  |   |        |       
|                                                                                                               |                  |                            |        |        |      |   |        |        |  |   |        |        |  |      |       
|Basic and diluted net income (loss) per common share                                                           |                  | $                          | 0.29   |        |      | $ | 0.12   |        |  | $ | (0.15  | )      |  | $    | (0.05  | )      |  | $ | (0.42   | )     
|                                                                                                               |                  |                            |        |        |      |   |        |        |  |   |        |        |  |      |       
|Weighted average number of common shares used in calculation:                                                  |                  |                            |        |        |      |   |        |        |  |   |        |        |  |      |        |        |  |   |         |       
|                                                                                                               | Basic            |                            |        | 45,780 |      |   |        | 46,515 |  |   |        | 43,177 |  |      |        | 34,218 |  |   |         | 31,715 | 
|                                                                                                               | Fully diluted(4) |                            |        | 46,164 |      |   |        | 46,837 |  |   |        | 43,177 |  |      |        | 34,218 |  |   |         | 31,715 | 

22



---



##### 



|                                                        |  |              |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|------------------------------------------------------- |  | ------------ | ------- |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | 
|                                                        |  | December 31, |        
|                                                        |  |              |        
|                                                        |  | 2004         |         |  | 2003 |   |         | 2002 |  |   | 2001    |  |  | 2000 |        
|                                                        |  |              |         |  |      |   |         |      |  |   |         |  |  |      |        
|BALANCE SHEET DATA(1):                                  |  |              |         |  |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         | 
|Current assets                                          |  | $            | 16,218  |  |      | $ | 16,068  |      |  | $ | 16,984  |  |  | $    | 12,179  |  |  | $ | 12,012  | 
|Total assets                                            |  |              | 397,361 |  |      |   | 373,301 |      |  |   | 308,030 |  |  |      | 306,356 |  |  |   | 252,733 | 
|Current liabilities                                     |  |              | 11,625  |  |      |   | 7,958   |      |  |   | 7,948   |  |  |      | 6,054   |  |  |   | 4,902   | 
|Long-term debt and capital leases, less current portion |  |              | 72,560  |  |      |   | 67,714  |      |  |   | 11,449  |  |  |      | 87,094  |  |  |   | 45,094  | 
|Total stockholders equity                              |  | $            | 288,826 |  |      | $ | 283,798 |      |  | $ | 278,490 |  |  | $    | 208,338 |  |  | $ | 198,420 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Acquisitions in 2004, 2003, 2002, 2001, and 2000 affect
    comparability among years (see Note 2 in Notes to Consolidated
    Financial Statements).                                                                                                                                                                                                                                                                                                                                                   
|   
|(2) | Under current accounting guidance, amounts formerly recorded as
    extraordinary loss due to the write-off of unamortized deferred
    finance costs are now included as a component of interest
    expense. The amount previously recorded in extraordinary loss
    and now included in interest expense is $1,114 for the year
    2000. In 2003, Regent wrote-off approximately $1.0 million
    in unamortized deferred finance costs, which are included as a
    component of interest expense.
|   
|(3) | Refer to Note 8 of the Notes to Consolidated Financial
    Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(4) | Shares for fully diluted are the same as basic in years 2000
    through 2002 as the effect of outstanding common stock options
    and warrants was anti-dilutive in those years.                                                                                                                                                                                                                                                                                                                      
|   
|(5) | Amounts from all periods presented have been restated to reflect
    the effect of discontinued operations.                                                                                                                                                                                                                                                                                                                                                                                             



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

Overview


Cautionary Statement
Concerning Forward-Looking Statements




http://www.sec.gov


23



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##### 



Executive Overview




Growth in radio stations and markets.






| |   |                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The exchange of four radio stations in Duluth, Minnesota that we
    had acquired in the Brill transaction, for five radio stations
    serving the Evansville, Indiana market, a market that we already
    had a presence in through the Brill transaction. This
    transaction was completed in January 2004.
|
| |  | The exchange of six radio stations we previously owned in two
    markets, Erie and Lancaster-Reading, Pennsylvania for five radio
    stations serving the Bloomington, Illinois market, creating
    regional synergies with our Peoria, Illinois stations. This
    transaction was completed in July 2004.   
|
| |  | The purchase of two radio stations serving the Ft.
    Collins-Greeley, Colorado market to add to our cluster that we
    acquired in the Brill acquisition. This transaction was
    completed in November 2004.                                                                                                



Performance of our stations and markets.


24



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##### 















The Sarbanes-Oxley Act of
2002  Section 404






| |   |                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Document and test our internal controls over financial reporting;                                                                                         
|
| |  | Form an evaluation, based on sufficient evidence, as to the
    overall effectiveness of our system of internal controls over
    financial reporting and;

25



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##### 





| |   |                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Issue an annual assertion on the effectiveness of internal
    control over financial reporting beginning with the year ended
    December 31, 2004.



Critical Accounting
Policies








| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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. Based upon past experience, these estimates have
    been a reliable method to recognize revenues and it is expected
    that this method will not change in the future.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | 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 apply a fair
    value approach employing a discounted cash flow methodology to
    test impairment of both indefinite-lived intangible assets and
    goodwill on a market by market basis. To arrive at a value for
    discounted cash flow of a market, management relies upon
    estimates of future cash flows and the effects of changes in
    business conditions. 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, 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 and FCC licenses. 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.                                                                                                                                                                                                                                                                                                                                                                                                                                

26



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##### 





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 intangibles with definite lives
    that we have recorded is not material.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | Deferred Tax Assets  At December 31,
    2004, we had a deferred tax asset of approximately
    $17.0 million before valuation allowance, the primary
    component of which is our net operating loss carryforwards.
    While we have a valuation allowance of $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 for years 2017 through 2024, based
    on estimated future taxable income during those years. Our
    estimated future taxable income in those periods takes into
    consideration the run-off of significant tax amortization
    related to existing FCC licenses and 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 the net operating loss carryforwards that are reserved for in
    the 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, 2004 would
    cause a decrease in net income of approximately
    $0.1 million, net of tax.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

Effect of Recently Issued
Accounting Pronouncements




27



---



##### 







Results of Operations




2004 Compared to 2003




Net Broadcast
Revenues






28



---



##### 





Station Operating
Expenses




Depreciation and
Amortization




Corporate Expense




Interest Expense




Income Taxes




29



---



##### 









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   |  
|                                      |  |      |      |   |      |  



Same Station Results






30



---



##### 







|                                          |  |         |        |  |         |   |        |        |  |  |     |  
|----------------------------------------- |  | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | -
|                                          |  | 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 | %
|                                          |  |         |        |  |         |   |        |        | 



|                                          |  |         |        |  |         |   |        |        |  |  |     |  
|----------------------------------------- |  | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | -
|                                          |  | 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 | %
|                                          |  |         |        |  |         |   |        |        | 



31



---



##### 





|                                          |  |         |        |  |         |   |        |        |  |  |     |  
|----------------------------------------- |  | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | -
|                                          |  | 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 | %
|                                          |  |         |        |  |         |   |        |        | 

2003 Compared to 2002




Net Broadcast
Revenues








Station Operating
Expenses




32



---



##### 







Depreciation and
Amortization




Corporate Expense




Interest Expense




Income Taxes




33



---



##### 





Discontinued
Operations




|                                      |  |      |       |   |      |   |       |  
|------------------------------------- |  | ---- | ----- | - | ---- | - | ----- | -
|                                      |  | 2003 |       |   | 2002 |  
|                                      |  |      |       |   |      |  
|Net revenue                           |  | $    | 7,417 |   |      | $ | 5,784 |  
|Station operating expense             |  |      | 5,298 |   |      |   | 4,593 |  
|Depreciation and amortization expense |  |      | 451   |   |      |   | 257   |  
|Allocated interest expense            |  |      | 298   |   |      |   | 99    |  
|Other expense, net                    |  |      | 14    |   |      |   | 74    |  
|                                      |  |      |       |   |      |  
|Income before income taxes            |  |      | 1,356 |   |      |   | 761   |  
|Income tax expense                    |  |      | (532  | ) |      |   | (281  | )
|                                      |  |      |       |   |      |  
|Net income                            |  | $    | 824   |   |      | $ | 480   |  
|                                      |  |      |       |   |      |  

Same Station Results








34



---



##### 





|                                          |  |         |        |  |         |   |        |        |  |  |     |  
|----------------------------------------- |  | ------- | ------ |  | ------- | - | ------ | ------ |  |  | --- | -
|                                          |  | 2003    |        |  | 2002    |   |        |       
|                                          |  | Net     |        |  | Net     |   |        | %      | 
|                                          |  | Revenue |        |  | Revenue |   |        | Change | 
|                                          |  |         |        |  |         |   |        |        | 
|Quarter 1(57 stations in 12 markets)      |  |         |        |  |         |   |        |        |  |  |     |  
|Net broadcast revenue                     |  | $       | 14,925 |  |         | $ | 12,331 |        |  |  |     |  
|Less remaining stations and barter effect |  |         | 3,042  |  |         |   | 632    |        |  |  |     |  
|                                          |  |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |  | $       | 11,883 |  |         | $ | 11,699 |        |  |  | 1.6 | %
|                                          |  |         |        |  |         |   |        |        | 



|                                          |  |         |        |  |         |   |        |        |  |  |      |   
|----------------------------------------- |  | ------- | ------ |  | ------- | - | ------ | ------ |  |  | ---- | --
|                                          |  | 2003    |        |  | 2002    |   |        |       
|                                          |  | Net     |        |  | Net     |   |        | %      | 
|                                          |  | Revenue |        |  | Revenue |   |        | Change | 
|                                          |  |         |        |  |         |   |        |        | 
|Quarter 2                                 |  |         |        |  |         |   |        |        |  |  |      |   
|(57 stations in 12 markets)               |  |         |        |  |         |   |        |        |  |  |      |   
|Net broadcast revenue                     |  | $       | 19,422 |  |         | $ | 16,258 |        |  |  |      |   
|Less remaining stations and barter effect |  |         | 4,277  |  |         |   | 982    |        |  |  |      |   
|                                          |  |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |  | $       | 15,145 |  |         | $ | 15,276 |        |  |  | (0.9 | )%
|                                          |  |         |        |  |         |   |        |        | 



|                                          |  |         |        |  |         |   |        |        |  |  |      |   
|----------------------------------------- |  | ------- | ------ |  | ------- | - | ------ | ------ |  |  | ---- | --
|                                          |  | 2003    |        |  | 2002    |   |        |       
|                                          |  | Net     |        |  | Net     |   |        | %      | 
|                                          |  | Revenue |        |  | Revenue |   |        | Change | 
|                                          |  |         |        |  |         |   |        |        | 
|Quarter 3                                 |  |         |        |  |         |   |        |        |  |  |      |   
|(57 stations in 12 markets)               |  |         |        |  |         |   |        |        |  |  |      |   
|Net broadcast revenue                     |  | $       | 19,570 |  |         | $ | 17,277 |        |  |  |      |   
|Less remaining stations and barter effect |  |         | 4,171  |  |         |   | 1,471  |        |  |  |      |   
|                                          |  |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |  | $       | 15,399 |  |         | $ | 15,806 |        |  |  | (2.6 | )%
|                                          |  |         |        |  |         |   |        |        | 



35



---



##### 





|                                          |  |         |        |  |         |   |        |        |  |  |      |   
|----------------------------------------- |  | ------- | ------ |  | ------- | - | ------ | ------ |  |  | ---- | --
|                                          |  | 2003    |        |  | 2002    |   |        |       
|                                          |  | Net     |        |  | Net     |   |        | %      | 
|                                          |  | Revenue |        |  | Revenue |   |        | Change | 
|                                          |  |         |        |  |         |   |        |        | 
|Quarter 4                                 |  |         |        |  |         |   |        |        |  |  |      |   
|(57 stations in 12 markets)               |  |         |        |  |         |   |        |        |  |  |      |   
|Net broadcast revenue                     |  | $       | 19,244 |  |         | $ | 18,740 |        |  |  |      |   
|Less remaining stations and barter effect |  |         | 4,126  |  |         |   | 3,562  |        |  |  |      |   
|                                          |  |         |        |  |         |   |        |        | 
|Same station net broadcast revenue        |  | $       | 15,118 |  |         | $ | 15,178 |        |  |  | (0.4 | )%
|                                          |  |         |        |  |         |   |        |        | 

Liquidity and Capital Resources


Executive Overview










36



---



##### 









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)                            |  | $                      | 76,518  |          |         | $ | 4,068  |             |  | $       | 16,087     |  |  | $          | 28,763 |  |  | $ | 27,600 | 
|Purchase obligations(2)                      |  |                        | 32,111  |          |         |   | 10,330 |             |  |         | 12,941     |  |  |            | 8,556  |  |  |   | 284    | 
|Capital leases                               |  |                        | 237     |          |         |   | 124    |             |  |         | 94         |  |  |            | 15     |  |  |   | 4      | 
|Interest payment obligations(3)              |  |                        | 15,070  |          |         |   | 4,972  |             |  |         | 6,323      |  |  |            | 3,257  |  |  |   | 518    | 
|High Definition radio capital obligations(4) |  |                        | 8,970   |          |         |   | 720    |             |  |         | 2,400      |  |  |            | 3,600  |  |  |   | 2,250  | 
|Asset retirement obligations                 |  |                        | 381     |          |         |   | 25     |             |  |         | -0-        |  |  |            | -0-    |  |  |   | 356    | 
|Operating leases(5)                          |  |                        | 7,512   |          |         |   | 1,253  |             |  |         | 2,322      |  |  |            | 1,560  |  |  |   | 2,377  | 
|                                             |  |                        |         |          |         |   |        |             |  |         |            |  |  |            |       
|Total contractual cash obligations           |  | $                      | 140,799 |          |         | $ | 21,492 |             |  | $       | 40,167     |  |  | $          | 45,751 |  |  | $ | 33,389 | 
|                                             |  |                        |         |          |         |   |        |             |  |         |            |  |  |            |       






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes a long-term note payable of approximately
    $0.3 million. If we are in default of our credit agreement,
    $76.2 million of long-term debt could be accelerated.                                                                                                                                                                                                                                                                                                              
|   
|(2) | Includes: approximately $0.7 million to complete the
    construction of the office and studio facilities in Albany, New
    York; employment contracts of approximately $5.2 million;
    and sports rights, ratings services, music license fees and
    other programming contracts of approximately $26.3 million.
    Employment contracts, sports rights, ratings services and
    programming contracts are expensed over the life of the contract
    in station operating income.
|   
|(3) | Represents interest payments on the amortizing balances of the
    term loan and revolving credit facilities. Assumes a LIBOR rate
    of 3%.                                                                                                                                                                                                                                                                                                                                             
|   
|(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.                                                                                                                                                                                                              

37



---



##### 





|    |                                                             
|--- | ------------------------------------------------------------
|(5) | Operating leases are included in station operating expenses.



|             |  |            |        |  |            |   |        | 
|------------ |  | ---------- | ------ |  | ---------- | - | ------ | 
|             |  | Revolving  |        |  | Term Loan  |  
|December 31, |  | Commitment |        |  | Commitment |  
|             |  |            |        |  |            |  
|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         |  |            | -0-    |  |            |   | -0-    | 



Sources of Funds










38



---



##### 









Uses of Funds










39



---



##### 





HD Radio Capital
Expenditures




Pending Disposition




Off-Balance Sheet Financing
Arrangements






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



40



---



##### 





|        |                                             
|------- | --------------------------------------------
|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                                                           |  |    | 42 | 
|                              |                                                                        | Report of Independent Registered Public Accounting Firm                                                                        |  |    | 43 | 
|                              |                                                                        | Consolidated Statements of Operations and Comprehensive Income
    (Loss) for the years ended December 31, 2004, 2003 and 2002 |  |    | 45 | 
|                              |                                                                        | Consolidated Balance Sheets at December 31, 2004 and 2003                                                                      |  |    | 46 | 
|                              |                                                                        | Consolidated Statements of Cash Flows for the years
    ended December 31, 2004, 2003 and 2002                                 |  |    | 47 | 
|                              |                                                                        | Consolidated Statements of Changes in Stockholders Equity
    for the years ended December 31, 2004, 2003 and 2002            |  |    | 48 | 
|                              |                                                                        | Notes to Consolidated Financial Statements                                                                                     |  |    | 49 | 
|Financial Statement Schedule: |                                                                        |                                                                                                                                |  |   
|                              | For each of the three years in the period ended
    December 31, 2004: |                                                                                                                                |  |    |   
|                              | II  Valuation and Qualifying Accounts                                 |                                                                                                                                |  | 80 |   



41



---



##### 



MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING






| |   |                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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
















42



---



##### 





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM






Consolidated financial statements and financial statement
schedule




Internal control over financial reporting


Internal Control  Integrated Framework Internal Control 
Integrated Framework




43



---



##### 















44



---



##### 



REGENT COMMUNICATIONS, INC.


CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)


(In thousands, except per share amounts)


|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |        |   |        |       |       |  
|----------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------- | ------ | ----- | ------ | - | ------ | ---- | ------ | - | ------ | ----- | ----- | -
|                                                                                                                                                      |                                                                                            | Year Ended December 31,                                                                              |       
|                                                                                                                                                      |                                                                                            |                                                                                                      |       
|                                                                                                                                                      |                                                                                            | 2004                                                                                                 |        |       | 2003   |   |        | 2002 |       
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|Broadcast revenues, net of agency commissions of $8,725, $7,681
    and $6,791 for the years ended December 31, 2004, 2003 and
    2002, respectively |                                                                                            | $                                                                                                    | 84,187 |       |        | $ | 73,161 |      |        | $ | 64,606 |      
|Station operating expenses                                                                                                                            |                                                                                            |                                                                                                      | 55,524 |       |        |   | 51,228 |      |        |   | 44,370 |      
|Depreciation and amortization                                                                                                                         |                                                                                            |                                                                                                      | 5,809  |       |        |   | 3,811  |      |        |   | 3,103  |      
|Corporate general and administrative expenses                                                                                                         |                                                                                            |                                                                                                      | 7,680  |       |        |   | 6,151  |      |        |   | 6,149  |      
|Impairment of goodwill                                                                                                                                |                                                                                            |                                                                                                      |       |       |        |   |       |      |        |   | 2,900  |      
|Loss (gain) on sale of long-lived assets                                                                                                              |                                                                                            |                                                                                                      | 407    |       |        |   | 105    |      |        |   | (442   | )    
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|                                                                                                                                                      |                                                                                            | Operating income                                                                                     |        |       | 14,767 |   |        |      | 11,866 |   |        |       | 8,526 |  
|Interest expense                                                                                                                                      |                                                                                            |                                                                                                      | (3,599 | )     |        |   | (3,373 | )    |        |   | (2,109 | )    
|Other expense, net                                                                                                                                    |                                                                                            |                                                                                                      | (160   | )     |        |   | (181   | )    |        |   | (359   | )    
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|                                                                                                                                                      |                                                                                            | Income from continuing operations before income taxes and
    cumulative effect of accounting change |        |       | 11,008 |   |        |      | 8,312  |   |        |       | 6,058 |  
|Income tax expense                                                                                                                                    |                                                                                            |                                                                                                      | (4,565 | )     |        |   | (3,430 | )    |        |   | (6,880 | )    
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|Income (loss) from continuing operations before cumulative
    effect of accounting change                                                            |                                                                                            |                                                                                                      | 6,443  |       |        |   | 4,882  |      |        |   | (822   | )    
|Discontinued operations:                                                                                                                              |                                                                                            |                                                                                                      |        |       |        |   |        |      |        |   |        |      
|                                                                                                                                                      | (Loss) gain from operations of discontinued operations, net of
    income taxes            |                                                                                                      |        | (249  | )      |   |        | 824  |        |   |        | 480   |      
|                                                                                                                                                      | Gain on sale of discontinued operations, net of income taxes                               |                                                                                                      |        | 7,041 |        |   |        |     |        |   |        |      |      
|Cumulative effect of accounting change, net of applicable income
    taxes of $3,762                                                                  |                                                                                            |                                                                                                      |       |       |        |   |       |      |        |   | (6,138 | )    
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|NET INCOME (LOSS)                                                                                                                                     |                                                                                            |                                                                                                      | 13,235 |       |        |   | 5,706  |      |        |   | (6,480 | )    
|Other comprehensive income (loss), net of tax:                                                                                                        |                                                                                            |                                                                                                      |        |       |        |   |        |      |        |   |        |      
|                                                                                                                                                      |                                                                                            | Net unrealized gain (loss) on cash flow hedge                                                        |        |       | 55     |   |        |      | (199   | ) |        |       |      |  
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|NET COMPREHENSIVE INCOME (LOSS)                                                                                                                       |                                                                                            | $                                                                                                    | 13,290 |       |        | $ | 5,507  |      |        | $ | (6,480 | )    
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE:                                                                                                     |                                                                                            |                                                                                                      |        |       |        |   |        |      |        |   |        |      
|                                                                                                                                                      | Income (loss) from continuing operations before cumulative
    effect of accounting change |                                                                                                      | $      | 0.14  |        |   | $      | 0.10 |        |   | $      | (0.02 | )    
|                                                                                                                                                      | Discontinued operations                                                                    |                                                                                                      |        | 0.15  |        |   |        | 0.02 |        |   |        | 0.01  |      
|                                                                                                                                                      | Cumulative effect of accounting change                                                     |                                                                                                      |        |      |        |   |        |     |        |   |        | (0.14 | )    
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|                                                                                                                                                      |                                                                                            | Net income (loss) per common share                                                                   |        | $     | 0.29   |   |        | $    | 0.12   |   |        | $     | (0.15 | )
|                                                                                                                                                      |                                                                                            |                                                                                                      |        |       |        |   |        |      |       
|Weighted average number of common shares used in basic
    calculation                                                                                |                                                                                            |                                                                                                      | 45,780 |       |        |   | 46,515 |      |        |   | 43,177 |      
|Weighted average number of common shares used in diluted
    calculation                                                                              |                                                                                            |                                                                                                      | 46,164 |       |        |   | 46,837 |      |        |   | 43,177 |      



45



---



##### 



REGENT COMMUNICATIONS, INC.


CONSOLIDATED BALANCE SHEETS


(In thousands, except share and per share amounts)


|                                        |                                                                                                                         |                                            |         |         |         |  |         |         |         | 
|--------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------- | ------- | ------- |  | ------- | ------- | ------- | 
|                                        |                                                                                                                         | December 31,                               |        
|                                        |                                                                                                                         |                                            |        
|                                        |                                                                                                                         | 2004                                       |         |         | 2003    | 
|                                        |                                                                                                                         |                                            |         |         |         | 
|ASSETS                                 
|Current assets:                         |                                                                                                                         |                                            |         |         |         |  |         |        
|                                        | Cash and cash equivalents                                                                                               |                                            | $       | 1,246   |         |  | $       | 1,673   |        
|                                        | Accounts receivable, net of allowance of $844 and $868 at
    December 31, 2004 and 2003, respectively                  |                                            |         | 13,618  |         |  |         | 13,554  |        
|                                        | Assets held for sale                                                                                                    |                                            |         | 465     |         |  |         |        |        
|                                        | Other current assets                                                                                                    |                                            |         | 889     |         |  |         | 841     |        
|                                        |                                                                                                                         |                                            |         |         |         | 
|                                        |                                                                                                                         | Total current assets                       |         |         | 16,218  |  |         |         | 16,068  | 
|Property and equipment, net             |                                                                                                                         |                                            | 36,944  |         |         |  | 35,135  |        
|Intangible assets, net                  |                                                                                                                         |                                            | 309,116 |         |         |  | 293,673 |        
|Goodwill, net                           |                                                                                                                         |                                            | 32,990  |         |         |  | 25,649  |        
|Other assets                            |                                                                                                                         |                                            | 2,093   |         |         |  | 2,776   |        
|                                        |                                                                                                                         |                                            |         |         |         | 
|                                        |                                                                                                                         | Total assets                               |         | $       | 397,361 |  |         | $       | 373,301 | 
|                                        |                                                                                                                         |                                            |         |         |         | 
|                                       
|LIABILITIES AND STOCKHOLDERS EQUITY   
|Current liabilities:                    |                                                                                                                         |                                            |         |         |         |  |         |        
|                                        | Current portion of long-term debt                                                                                       |                                            | $       | 4,068   |         |  | $       | 872     |        
|                                        | Accounts payable                                                                                                        |                                            |         | 1,772   |         |  |         | 2,366   |        
|                                        | Accrued compensation                                                                                                    |                                            |         | 2,075   |         |  |         | 1,402   |        
|                                        | Other current liabilities                                                                                               |                                            |         | 3,710   |         |  |         | 3,318   |        
|                                        |                                                                                                                         |                                            |         |         |         | 
|                                        |                                                                                                                         | Total current liabilities                  |         |         | 11,625  |  |         |         | 7,958   | 
|Long-term debt, less current portion    |                                                                                                                         |                                            | 72,450  |         |         |  | 67,018  |        
|Other long-term liabilities             |                                                                                                                         |                                            | 965     |         |         |  | 696     |        
|Deferred taxes                          |                                                                                                                         |                                            | 23,495  |         |         |  | 13,831  |        
|                                        |                                                                                                                         |                                            |         |         |         | 
|                                        |                                                                                                                         | Total liabilities                          |         |         | 108,535 |  |         |         | 89,503  | 
|Commitments and Contingencies (Note 13) |                                                                                                                         |                                            |         |         |         |  |         |        
|Stockholders equity:                   |                                                                                                                         |                                            |         |         |         |  |         |        
|                                        | Common stock, $.01 par value, 100,000,000 shares authorized;
    48,083,492 shares issued at December 31, 2004 and 2003 |                                            |         | 481     |         |  |         | 481     |        
|                                        | Treasury stock, 2,958,466 and 1,542,705 shares, at cost at
    December 31, 2004 and 2003, respectively                 |                                            |         | (15,994 | )       |  |         | (7,758  | )      
|                                        | Additional paid-in capital                                                                                              |                                            |         | 347,990 |         |  |         | 348,016 |        
|                                        | Accumulated other comprehensive loss                                                                                    |                                            |         | (144    | )       |  |         | (199    | )      
|                                        | Accumulated deficit                                                                                                     |                                            |         | (43,507 | )       |  |         | (56,742 | )      
|                                        |                                                                                                                         |                                            |         |         |         | 
|                                        |                                                                                                                         | Total stockholders equity                 |         |         | 288,826 |  |         |         | 283,798 | 
|                                        |                                                                                                                         |                                            |         |         |         | 
|                                        |                                                                                                                         | Total liabilities and stockholders equity |         | $       | 397,361 |  |         | $       | 373,301 | 
|                                        |                                                                                                                         |                                            |         |         |         | 



46



---



##### 



REGENT COMMUNICATIONS, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)


|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |        |   |        |         |        |  
|------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------- | ------- | ------- | ------- | - | ------- | ------- | ------ | - | ------ | ------- | ------ | -
|                                                                          |                                                                                                                                      | Year Ended December 31,                                                    |        
|                                                                          |                                                                                                                                      |                                                                            |        
|                                                                          |                                                                                                                                      | 2004                                                                       |         |         | 2003    |   |         | 2002    |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Cash flows from operating activities:                                     |                                                                                                                                      |                                                                            |         |         |         |   |         |         |        |   |        |        
|Net income (loss)                                                         |                                                                                                                                      | $                                                                          | 13,235  |         |         | $ | 5,706   |         |        | $ | (6,480 | )      
|                                                                          | Adjustments to reconcile net income (loss) to net cash
    provided by operating activities:                                         |                                                                            |         |         |         |   |         |         |        |   |        |         |       
|                                                                          |                                                                                                                                      | Cumulative effect of accounting change, net of applicable income
    taxes |         |         |        |   |         |         |       |   |        |         | 6,138  |  
|                                                                          |                                                                                                                                      | Depreciation and amortization                                              |         |         | 6,101   |   |         |         | 4,262  |   |        |         | 3,360  |  
|                                                                          |                                                                                                                                      | Provision for doubtful accounts                                            |         |         | 536     |   |         |         | 908    |   |        |         | 819    |  
|                                                                          |                                                                                                                                      | Deferred income tax expense and valuation allowance                        |         |         | 8,689   |   |         |         | 3,860  |   |        |         | 7,114  |  
|                                                                          |                                                                                                                                      | Write-off of unamortized deferred finance costs                            |         |         |        |   |         |         | 1,032  |   |        |         |       |  
|                                                                          |                                                                                                                                      | Non-cash interest expense                                                  |         |         | 409     |   |         |         | 321    |   |        |         | 281    |  
|                                                                          |                                                                                                                                      | Non-cash charge for compensation                                           |         |         | 641     |   |         |         | 497    |   |        |         | 499    |  
|                                                                          |                                                                                                                                      | Gain on sale of radio stations, net                                        |         |         | (11,625 | ) |         |         |       |   |        |         |       |  
|                                                                          |                                                                                                                                      | Loss (gain) on sale of long-lived assets                                   |         |         | 407     |   |         |         | 102    |   |        |         | (442   | )
|                                                                          |                                                                                                                                      | Impairment of goodwill                                                     |         |         |        |   |         |         |       |   |        |         | 2,900  |  
|                                                                          |                                                                                                                                      | Other, net                                                                 |         |         | (293    | ) |         |         | (102   | ) |        |         | (422   | )
|                                                                          | Changes in operating assets and liabilities, net of acquisitions
    and dispositions:                                               |                                                                            |         |         |         |   |         |         |        |   |        |         |       
|                                                                          |                                                                                                                                      | Accounts receivable                                                        |         |         | (743    | ) |         |         | (723   | ) |        |         | (4,576 | )
|                                                                          |                                                                                                                                      | Other assets                                                               |         |         | (406    | ) |         |         | 14     |   |        |         | (204   | )
|                                                                          |                                                                                                                                      | Current and long-term liabilities                                          |         |         | 1,258   |   |         |         | (1,899 | ) |        |         | 1,996  |  
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Net cash provided by operating activities                                 |                                                                                                                                      |                                                                            | 18,209  |         |         |   | 13,978  |         |        |   | 10,983 |        
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Cash flows from investing activities:                                     |                                                                                                                                      |                                                                            |         |         |         |   |         |         |        |   |        |        
|                                                                          | Acquisitions of radio stations, net of cash acquired,
    acquisition related costs, and escrow deposits on pending
    acquisitions |                                                                            |         | (14,203 | )       |   |         | (63,322 | )      |   |        | (6,248  | )     
|                                                                          | Capital expenditures                                                                                                                 |                                                                            |         | (3,843  | )       |   |         | (5,033  | )      |   |        | (3,856  | )     
|                                                                          | Net proceeds from sale of long-lived assets and other                                                                                |                                                                            |         | 30      |         |   |         | 29      |        |   |        | 1,829   |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Net cash used in investing activities                                     |                                                                                                                                      |                                                                            | (18,016 | )       |         |   | (68,326 | )       |        |   | (8,275 | )      
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Cash flows from financing activities:                                     |                                                                                                                                      |                                                                            |         |         |         |   |         |         |        |   |        |        
|                                                                          | Proceeds from issuance of common stock                                                                                               |                                                                            |         |        |         |   |         |        |        |   |        | 75,785  |       
|                                                                          | Proceeds from long-term debt                                                                                                         |                                                                            |         | 19,000  |         |   |         | 138,500 |        |   |        | 5,000   |       
|                                                                          | Principal payments on long-term debt                                                                                                 |                                                                            |         | (10,373 | )       |   |         | (82,029 | )      |   |        | (80,660 | )     
|                                                                          | Payment of financing costs                                                                                                           |                                                                            |         | (86     | )       |   |         | (1,959  | )      |   |        |        |       
|                                                                          | Payment of issuance costs                                                                                                            |                                                                            |         |        |         |   |         | (1      | )      |   |        | (820    | )     
|                                                                          | Treasury stock purchases                                                                                                             |                                                                            |         | (8,996  | )       |   |         | (992    | )      |   |        | (1,122  | )     
|                                                                          | Repayment of capital lease obligations                                                                                               |                                                                            |         | (165    | )       |   |         | (154    | )      |   |        |        |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Net cash (used in) provided by financing activities                       |                                                                                                                                      |                                                                            | (620    | )       |         |   | 53,365  |         |        |   | (1,817 | )      
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Net (decrease) increase in cash and cash equivalents                      |                                                                                                                                      |                                                                            | (427    | )       |         |   | (983    | )       |        |   | 891    |        
|Cash and cash equivalents at beginning of period                          |                                                                                                                                      |                                                                            | 1,673   |         |         |   | 2,656   |         |        |   | 1,765  |        
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Cash and cash equivalents at end of period                                |                                                                                                                                      | $                                                                          | 1,246   |         |         | $ | 1,673   |         |        | $ | 2,656  |        
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Supplemental schedule of non-cash investing and financing
    activities: |                                                                                                                                      |                                                                            |         |         |         |   |         |         |        |   |        |        
|                                                                          | Common stock issued in conjunction with the acquisitions of
    radio stations                                                       |                                                                            | $       |        |         |   | $       |        |        |   | $      | 2,445   |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|                                                                          | Employer match on 401(k) plan                                                                                                        |                                                                            | $       | 444     |         |   | $       | 402     |        |   | $      | 294     |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|                                                                          | Capital lease obligations for property and equipment                                                                                 |                                                                            | $       | 148     |         |   | $       | 150     |        |   | $      |        |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|                                                                          | Fair value of assets exchanged, excluding amount paid in cash                                                                        |                                                                            | $       | 44,594  |         |   | $       |        |        |   | $      |        |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|Supplemental data:                                                        |                                                                                                                                      |                                                                            |         |         |         |   |         |         |        |   |        |        
|                                                                          | Cash paid for interest                                                                                                               |                                                                            | $       | 3,311   |         |   | $       | 4,132   |        |   | $      | 2,082   |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       
|                                                                          | Cash paid for income taxes                                                                                                           |                                                                            | $       | 160     |         |   | $       | 215     |        |   | $      | 85      |       
|                                                                          |                                                                                                                                      |                                                                            |         |         |         |   |         |         |       



47



---



##### 



REGENT COMMUNICATIONS, INC.


CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS
EQUITY


(In thousands, except share amounts)


|                                                                                     |  |        |     |  |          |            |         |         |  |             |             |   |  |               |         |   |               |   |      |   |  |   |         |  
|------------------------------------------------------------------------------------ |  | ------ | --- |  | -------- | ---------- | ------- | ------- |  | ----------- | ----------- | - |  | ------------- | ------- | - | ------------- | - | ---- | - |  | - | ------- | -
|                                                                                     |  |        |     |  |          |            |         |         |  | Accumulated |             |   | 
|                                                                                     |  |        |     |  |          | Additional |         |         |  |             | Other       |   |  | Total         |        
|                                                                                     |  | Common |     |  | Treasury |            |         | Paid-In |  |             | Accumulated |   |  | Comprehensive |         |   | Stockholders |  
|                                                                                     |  | Stock  |     |  | Stock    |            |         | Capital |  |             | Deficit     |   |  | Loss          |         |   | Equity        |  
|                                                                                     |  |        |     |  |          |            |         |         |  |             |             |   |  |               |         |   |               |  
|Balance, December 31, 2001                                                           |  | $      | 369 |  |          | $          | (6,757  | )       |  | $           | 270,694     |   |  | $             | (55,968 | ) |               | $ |     |   |  | $ | 208,338 |  
|Issuance of 10,700,000 shares of common stock, net of issuance
    costs of $4,832   |  |        | 107 |  |          |            |        |         |  |             | 74,961      |   |  |               |        |   |               |   |     |   |  |   | 75,068  |  
|Issuance of 384,453 shares of common stock in conjunction with
    acquisitions      |  |        | 4   |  |          |            |        |         |  |             | 2,290       |   |  |               |        |   |               |   |     |   |  |   | 2,294   |  
|Exercise of 16,074 stock options                                                     |  |        |    |  |          |            |        |         |  |             | 20          |   |  |               |        |   |               |   |     |   |  |   | 20      |  
|Issuance of 42,706 shares of treasury stock for 401(k) match,
    net of forfeitures |  |        |    |  |          |            | 235     |         |  |             | 38          |   |  |               |        |   |               |   |     |   |  |   | 273     |  
|Issuance of 12,571 shares of treasury stock for employee stock
    purchase plan     |  |        |    |  |          |            | 69      |         |  |             | 8           |   |  |               |        |   |               |   |     |   |  |   | 77      |  
|Purchase of 235,660 shares of treasury stock                                         |  |        |    |  |          |            | (1,122  | )       |  |             |            |   |  |               |        |   |               |   |     |   |  |   | (1,122  | )
|Stock compensation expense                                                           |  |        |    |  |          |            |        |         |  |             | 22          |   |  |               |        |   |               |   |     |   |  |   | 22      |  
|Net loss                                                                             |  |        |    |  |          |            |        |         |  |             |            |   |  |               | (6,480  | ) |               |   |     |   |  |   | (6,480  | )
|                                                                                     |  |        |     |  |          |            |         |         |  |             |             |   |  |               |         |   |               |  
|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 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 |  
|                                                                                     |  |        |     |  |          |            |         |         |  |             |             |   |  |               |         |   |               |  



48



---



##### 



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:





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



49



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





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





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





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

Broadcast Revenue




Barter Transactions




50



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Time Brokerage
Agreements






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

Short-Term
Instruments




Long-Term Debt




Interest Rate Swaps




51



---



##### 



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:



52



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                                    |             |                         |        |             |      |   |        |      |  |   |        |       |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | ----------------------- | ------ | ----------- | ---- | - | ------ | ---- |  | - | ------ | ----- | -
|                                                                                                                                                    |             | Year Ended December 31, |       
|                                                                                                                                                    |             |                         |       
|                                                                                                                                                    |             | 2004                    |        |             | 2003 |   |        | 2002 | 
|                                                                                                                                                    |             |                         |        |             |      |   |        |      | 
|                                                                                                                                                    |             |                         |        | (Unaudited) |      |   |       
|Net income (loss), as reported                                                                                                                      |             | $                       | 13,235 |             |      | $ | 5,706  |      |  | $ | (6,480 | )    
|Add: Stock-based employee compensation included in reported net
    income, net of related tax effects                                              |             |                         | 1      |             |      |   |       |      |  |   |       |      
|Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    related tax effects |             |                         | (1,497 | )           |      |   | (1,362 | )    |  |   | (1,546 | )    
|                                                                                                                                                    |             |                         |        |             |      |   |        |      | 
|Pro forma net income (loss)                                                                                                                         |             | $                       | 11,739 |             |      | $ | 4,344  |      |  | $ | (8,026 | )    
|                                                                                                                                                    |             |                         |        |             |      |   |        |      | 
|Pro forma income (loss) applicable to common shares                                                                                                 |             | $                       | 11,739 |             |      | $ | 4,344  |      |  | $ | (8,026 | )    
|                                                                                                                                                    |             |                         |        |             |      |   |        |      | 
|Basic income (loss) per share:                                                                                                                      |             |                         |        |             |      |   |        |      |  |   |        |      
|                                                                                                                                                    | As reported |                         | $      | 0.29        |      |   | $      | 0.12 |  |   | $      | (0.15 | )
|                                                                                                                                                    | Pro forma   |                         | $      | 0.26        |      |   | $      | 0.09 |  |   | $      | (0.19 | )
|Diluted income (loss) per share:                                                                                                                    |             |                         |        |             |      |   |        |      |  |   |        |      
|                                                                                                                                                    | As reported |                         | $      | 0.29        |      |   | $      | 0.12 |  |   | $      | (0.15 | )
|                                                                                                                                                    | Pro forma   |                         | $      | 0.25        |      |   | $      | 0.09 |  |   | $      | (0.19 | )



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

Disposal of Markets




|                                  |  |      |      |   |      |   |       |      |  |   |       | 
|--------------------------------- |  | ---- | ---- | - | ---- | - | ----- | ---- |  | - | ----- | 
|                                  |  | 2004 |      |   | 2003 |   |       | 2002 | 
|                                  |  |      |      |   |      |   |       |      | 
|Net revenue                       |  | $    | 432  |   |      | $ | 7,417 |      |  | $ | 5,784 | 
|Depreciation and amortization     |  |      | 292  |   |      |   | 451   |      |  |   | 257   | 
|Allocated interest expense        |  |      | 111  |   |      |   | 298   |      |  |   | 99    | 
|(Loss) income before income taxes |  |      | (410 | ) |      |   | 1,356 |      |  |   | 761   | 

Assets held for sale




53



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                          |  |                      |      |  
|------------------------- |  | -------------------- | ---- | -
|                          |  | 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



Pending Disposition




2004 Acquisitions and
Dispositions




54



---



##### 



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                                                                                                         

55



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




2002 Acquisitions and
Dispositions












56



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                             |         |                       |        |      |      |   |        |      | 
|---------------------------- | ------- | --------------------- | ------ | ---- | ---- | - | ------ | ---- | 
|                             |         | Pro Forma             |       
|                             |         | (Unaudited)           |       
|                             |         |                       |       
|                             |         | 2004                  |        |      | 2003 |  
|                             |         |                       |        |      |      |  
|                             |         | (In thousands, except |       
|                             |         | per share amounts)    |       
|Net broadcast revenues       |         | $                     | 84,724 |      |      | $ | 80,837 |     
|Net income                   |         | $                     | 12,832 |      |      | $ | 5,825  |     
|Net income per common share: |         |                       |        |      |      |   |        |     
|                             | Basic   |                       | $      | 0.28 |      |   | $      | 0.13 | 
|                             | Diluted |                       | $      | 0.28 |      |   | $      | 0.12 | 



3.     Long-Term Debt




|                                          |  |      |        |   |      |   |        |  
|----------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | -
|                                          |  | 2004 |        |   | 2003 |  
|                                          |  |      |        |   |      |  
|Senior reducing term loan                 |  | $    | 64,188 |   |      | $ | 65,000 |  
|Senior reducing revolving credit facility |  |      | 12,000 |   |      |   | 2,500  |  
|Subordinated promissory note              |  |      | 330    |   |      |   | 390    |  
|                                          |  |      |        |   |      |  
|                                          |  |      | 76,518 |   |      |   | 67,890 |  
|Less: current portion of long-term debt   |  |      | (4,068 | ) |      |   | (872   | )
|                                          |  |      |        |   |      |  
|                                          |  | $    | 72,450 |   |      | $ | 67,018 |  
|                                          |  |      |        |   |      |  

Senior Reducing Revolving
Credit Facility




57



---



##### 



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         |  |            |       |  |            |   |       | 





58



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##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|           |  |   |        | 
|---------- |  | - | ------ | 
|2005       |  | $ | 4,068  | 
|2006       |  |   | 6,175  | 
|2007       |  |   | 9,912  | 
|2008       |  |   | 13,163 | 
|2009       |  |   | 15,600 | 
|Thereafter |  |   | 27,600 | 
|           |  |   |       
|           |  | $ | 76,518 | 
|           |  |   |       





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





59



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##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidating Statements of Operations


(in thousands)


Year Ended December 31, 2004


|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |         |   |  |   |        |  
|------------------------------------------------------------ |  | --- | ------ | - | --- | ---------- | ------ | ---------- |  | - | ------------ | - |  | ----- | ------- | - |  | - | ------ | -
|                                                             |  |     |        |   |     | Subsidiary |        |            |  |   |             
|                                                             |  | RCI |        |   | RBI |            |        | Guarantors |  |   | Eliminations |   |  | Total |        
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|Net broadcast revenue                                        |  | $   |       |   |     | $          |       |            |  | $ | 84,187       |   |  | $     |        |   |  | $ | 84,187 |  
|Station operating expenses                                   |  |     |       |   |     |            |       |            |  |   | 55,524       |   |  |       |        |   |  |   | 55,524 |  
|Depreciation and amortization                                |  |     | 86     |   |     |            |       |            |  |   | 5,723        |   |  |       |        |   |  |   | 5,809  |  
|Corporate general and administrative expenses                |  |     | 7,603  |   |     |            | 77     |            |  |   |             |   |  |       |        |   |  |   | 7,680  |  
|Loss on sale of assets                                       |  |     | 1      |   |     |            |       |            |  |   | 406          |   |  |       |        |   |  |   | 407    |  
|Equity (loss) in earnings of subsidiaries                    |  |     | 5,354  |   |     |            | 12,919 |            |  |   |             |   |  |       | (18,273 | ) |  |   |       |  
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|Operating (loss) income                                      |  |     | (2,336 | ) |     |            | 12,842 |            |  |   | 22,534       |   |  |       | (18,273 | ) |  |   | 14,767 |  
|Interest expense                                             |  |     | (36    | ) |     |            | (3,563 | )          |  |   |             |   |  |       |        |   |  |   | (3,599 | )
|Other income (expense), net                                  |  |     | 8      |   |     |            | (17    | )          |  |   | (151         | ) |  |       |        |   |  |   | (160   | )
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|(Loss) income from continuing operations before income taxes |  |     | (2,364 | ) |     |            | 9,262  |            |  |   | 22,383       |   |  |       | (18,273 | ) |  |   | 11,008 |  
|Income tax benefit (expense)                                 |  |     | 981    |   |     |            | (3,841 | )          |  |   | (9,283       | ) |  |       | 7,578   |   |  |   | (4,565 | )
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|(Loss) income from continuing operations                     |  |     | (1,383 | ) |     |            | 5,421  |            |  |   | 13,100       |   |  |       | (10,695 | ) |  |   | 6,443  |  
|Discontinued operations, net of income taxes                 |  |     | 7,040  |   |     |            | (67    | )          |  |   | (181         | ) |  |       |        |   |  |   | 6,792  |  
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|Net income (loss)                                            |  | $   | 5,657  |   |     | $          | 5,354  |            |  | $ | 12,919       |   |  | $     | (10,695 | ) |  | $ | 13,235 |  
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        

Condensed Consolidating Statements of Operations


(in thousands)


Year Ended December 31, 2003


|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |         |   |  |   |        |  
|------------------------------------------------------------ |  | --- | ------ | - | --- | ---------- | ------ | ---------- |  | - | ------------ | - |  | ----- | ------- | - |  | - | ------ | -
|                                                             |  |     |        |   |     | Subsidiary |        |            |  |   |             
|                                                             |  | RCI |        |   | RBI |            |        | Guarantors |  |   | Eliminations |   |  | Total |        
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|Net broadcast revenue                                        |  | $   |       |   |     | $          |       |            |  | $ | 73,161       |   |  | $     |        |   |  | $ | 73,161 |  
|Station operating expenses                                   |  |     |       |   |     |            |       |            |  |   | 51,228       |   |  |       |        |   |  |   | 51,228 |  
|Depreciation and amortization                                |  |     | 109    |   |     |            |       |            |  |   | 3,702        |   |  |       |        |   |  |   | 3,811  |  
|Corporate general and administrative expenses                |  |     | 6,089  |   |     |            | 62     |            |  |   |             |   |  |       |        |   |  |   | 6,151  |  
|Loss on sale of assets                                       |  |     | 1      |   |     |            |       |            |  |   | 104          |   |  |       |        |   |  |   | 105    |  
|Equity (loss) in earnings of subsidiaries                    |  |     | 4,595  |   |     |            | 11,550 |            |  |   |             |   |  |       | (16,145 | ) |  |   |       |  
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|Operating (loss) income                                      |  |     | (1,604 | ) |     |            | 11,488 |            |  |   | 18,127       |   |  |       | (16,145 | ) |  |   | 11,866 |  
|Interest expense                                             |  |     | (36    | ) |     |            | (3,337 | )          |  |   |             |   |  |       |        |   |  |   | (3,373 | )
|Other income (expense), net                                  |  |     | 13     |   |     |            | (20    | )          |  |   | (174         | ) |  |       |        |   |  |   | (181   | )
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|(Loss) income from continuing operations before income taxes |  |     | (1,627 | ) |     |            | 8,131  |            |  |   | 17,953       |   |  |       | (16,145 | ) |  |   | 8,312  |  
|Income tax benefit (expense)                                 |  |     | 672    |   |     |            | (3,355 | )          |  |   | (7,408       | ) |  |       | 6,661   |   |  |   | (3,430 | )
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|(Loss) income from continuing operations                     |  |     | (955   | ) |     |            | 4,776  |            |  |   | 10,545       |   |  |       | (9,484  | ) |  |   | 4,882  |  
|Discontinued operations, net of income taxes                 |  |     |       |   |     |            | (181   | )          |  |   | 1,005        |   |  |       |        |   |  |   | 824    |  
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        
|Net (loss) income                                            |  | $   | (955   | ) |     | $          | 4,595  |            |  | $ | 11,550       |   |  | $     | (9,484  | ) |  | $ | 5,706  |  
|                                                             |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        

60



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##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidating Statements of Operations


(in thousands)


Year Ended December 31, 2002


|                                                                                                            |  |     |        |   |     |            |        |            |  |   |              |   |  |       |        |   |  |   |        |  
|----------------------------------------------------------------------------------------------------------- |  | --- | ------ | - | --- | ---------- | ------ | ---------- |  | - | ------------ | - |  | ----- | ------ | - |  | - | ------ | -
|                                                                                                            |  |     |        |   |     | Subsidiary |        |            |  |   |             
|                                                                                                            |  | RCI |        |   | RBI |            |        | Guarantors |  |   | Eliminations |   |  | Total |       
|                                                                                                            |  |     |        |   |     |            |        |            |  |   |              |   |  |       |       
|Net broadcast revenue                                                                                       |  | $   |       |   |     | $          |       |            |  | $ | 64,606       |   |  | $     |       |   |  | $ | 64,606 |  
|Station operating expenses                                                                                  |  |     |       |   |     |            |       |            |  |   | 44,370       |   |  |       |       |   |  |   | 44,370 |  
|Depreciation and amortization                                                                               |  |     | 109    |   |     |            |       |            |  |   | 2,994        |   |  |       |       |   |  |   | 3,103  |  
|Corporate general and administrative expenses                                                               |  |     | 6,088  |   |     |            | 61     |            |  |   |             |   |  |       |       |   |  |   | 6,149  |  
|Impairment of goodwill                                                                                      |  |     |       |   |     |            |       |            |  |   | 2,900        |   |  |       |       |   |  |   | 2,900  |  
|Gain on sale of long-lived assets                                                                           |  |     |       |   |     |            |       |            |  |   | (442         | ) |  |       |       |   |  |   | (442   | )
|(Loss) equity in earnings of subsidiaries                                                                   |  |     | (217   | ) |     |            | 1,893  |            |  |   |             |   |  |       | (1,676 | ) |  |   |       |  
|                                                                                                            |  |     |        |   |     |            |        |            |  |   |              |   |  |       |       
|Operating (loss) income                                                                                     |  |     | (6,414 | ) |     |            | 1,832  |            |  |   | 14,784       |   |  |       | (1,676 | ) |  |   | 8,526  |  
|Interest expense                                                                                            |  |     | (36    | ) |     |            | (2,073 | )          |  |   |             |   |  |       |       |   |  |   | (2,109 | )
|Other income (expense), net                                                                                 |  |     | 13     |   |     |            | (20    | )          |  |   | (352         | ) |  |       |       |   |  |   | (359   | )
|                                                                                                            |  |     |        |   |     |            |        |            |  |   |              |   |  |       |       
|(Loss) income from continuing operations before income taxes and
    cumulative effect of accounting change |  |     | (6,437 | ) |     |            | (261   | )          |  |   | 14,432       |   |  |       | (1,676 | ) |  |   | 6,058  |  
|Income tax (expense) benefit                                                                                |  |     | (581   | ) |     |            | 106    |            |  |   | (6,943       | ) |  |       | 538    |   |  |   | (6,880 | )
|                                                                                                            |  |     |        |   |     |            |        |            |  |   |              |   |  |       |       
|(Loss) income from continuing operations before cumulative
    effect of accounting change                  |  |     | (7,018 | ) |     |            | (155   | )          |  |   | 7,489        |   |  |       | (1,138 | ) |  |   | (822   | )
|Discontinued operations, net of income taxes                                                                |  |     |       |   |     |            | (62    | )          |  |   | 542          |   |  |       |       |   |  |   | 480    |  
|Cumulative effect of accounting change, net of income taxes                                                 |  |     |       |   |     |            |       |            |  |   | (6,138       | ) |  |       |       |   |  |   | (6,138 | )
|                                                                                                            |  |     |        |   |     |            |        |            |  |   |              |   |  |       |       
|Net (loss) income                                                                                           |  | $   | (7,018 | ) |     | $          | (217   | )          |  | $ | 1,893        |   |  | $     | (1,138 | ) |  | $ | (6,480 | )
|                                                                                                            |  |     |        |   |     |            |        |            |  |   |              |   |  |       |       

61



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##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidating Balance Sheets


(in thousands)


December 31, 2004


|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |        |         | 
|---------------------------------------------- | ------------------------------------- | ------------------------------------------ | ------- | ----- | ------- | ---------- | ------- | ---------- | ------- |  | ------------ | ------ | ------- | ----- | -------- | ------- | -------- | - | ------- | ------ | ------- | 
|                                               |                                       |                                            |         |       |         | Subsidiary |         |            |         |  |             
|                                               |                                       | RCI                                        |         |       | RBI     |            |         | Guarantors |         |  | Eliminations |        |         | Total |         
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|ASSETS                                         |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|Current assets:                                |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|                                               | Cash and cash equivalents             |                                            | $       |      |         |            | $       | 1,246      |         |  | $            |       |         |       | $        |        |          |   | $       | 1,246  |        
|                                               | Accounts receivable, net              |                                            |         | 14    |         |            |         |           |         |  |              | 13,604 |         |       |          |        |          |   |         | 13,618 |        
|                                               | Other current assets                  |                                            |         | 382   |         |            |         |           |         |  |              | 972    |         |       |          |        |          |   |         | 1,354  |        
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total current assets                       |         |       | 396     |            |         |            | 1,246   |  |              |        | 14,576  |       |          |         |         |   |         |        | 16,218  | 
|Intercompany receivable                        |                                       |                                            |        |       |         |            |        |            |         |  | 69,938       |        |         |       | (69,938  | )       |          |   |        |       
|Investment in subsidiaries                     |                                       |                                            | 275,290 |       |         |            | 419,172 |            |         |  |             |        |         |       | (694,462 | )       |          |   |        |       
|Property and equipment, net                    |                                       |                                            | 388     |       |         |            |        |            |         |  | 36,556       |        |         |       |         |         |          |   | 36,944  |       
|Intangible assets, net                         |                                       |                                            |        |       |         |            |        |            |         |  | 309,116      |        |         |       |         |         |          |   | 309,116 |       
|Goodwill, net                                  |                                       |                                            | 1,599   |       |         |            |        |            |         |  | 31,391       |        |         |       |         |         |          |   | 32,990  |       
|Other assets                                   |                                       |                                            | 14,377  |       |         |            | 1,528   |            |         |  | 44           |        |         |       | (13,856  | )       |          |   | 2,093   |       
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total assets                               |         | $     | 292,050 |            |         | $          | 421,946 |  |              | $      | 461,621 |       |          | $       | (778,256 | ) |         | $      | 397,361 | 
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|LIABILITIES AND
    STOCKHOLDERS EQUITY       |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|Current liabilities:                           |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|                                               | Current portion of long-term debt     |                                            | $       | 330   |         |            | $       | 3,738      |         |  | $            |       |         |       | $        |        |          |   | $       | 4,068  |        
|                                               | Accounts payable and accrued expenses |                                            |         | 2,403 |         |            |         | 521        |         |  |              | 4,633  |         |       |          |        |          |   |         | 7,557  |        
|                                               | Intercompany payable                  |                                            |         |      |         |            |         | 69,938     |         |  |              |       |         |       |          | (69,938 | )        |   |         |       |        
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total current liabilities                  |         |       | 2,733   |            |         |            | 74,197  |  |              |        | 4,633   |       |          |         | (69,938  | ) |         |        | 11,625  | 
|Long-term debt, less current portion           |                                       |                                            |        |       |         |            | 72,450  |            |         |  |             |        |         |       |         |         |          |   | 72,450  |       
|Deferred taxes and other long-term liabilities |                                       |                                            | 491     |       |         |            | 9       |            |         |  | 37,816       |        |         |       | (13,856  | )       |          |   | 24,460  |       
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total liabilities                          |         |       | 3,224   |            |         |            | 146,656 |  |              |        | 42,449  |       |          |         | (83,794  | ) |         |        | 108,535 | 
|Stockholders equity                           |                                       |                                            | 288,826 |       |         |            | 275,290 |            |         |  | 419,172      |        |         |       | (694,462 | )       |          |   | 288,826 |       
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total liabilities and stockholders equity |         | $     | 292,050 |            |         | $          | 421,946 |  |              | $      | 461,621 |       |          | $       | (778,256 | ) |         | $      | 397,361 | 
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         

62



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##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidating Balance Sheets


(in thousands)


December 31, 2003


|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |        |         | 
|---------------------------------------------- | ------------------------------------- | ------------------------------------------ | ------- | ----- | ------- | ---------- | ------- | ---------- | ------- |  | ------------ | ------ | ------- | ----- | -------- | ------- | -------- | - | ------- | ------ | ------- | 
|                                               |                                       |                                            |         |       |         | Subsidiary |         |            |         |  |             
|                                               |                                       | RCI                                        |         |       | RBI     |            |         | Guarantors |         |  | Eliminations |        |         | Total |         
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|ASSETS                                         |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|Current assets:                                |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|                                               | Cash and cash equivalents             |                                            | $       |      |         |            | $       | 1,673      |         |  | $            |       |         |       | $        |        |          |   | $       | 1,673  |        
|                                               | Accounts receivable, net              |                                            |         |      |         |            |         |           |         |  |              | 13,554 |         |       |          |        |          |   |         | 13,554 |        
|                                               | Other current assets                  |                                            |         | 360   |         |            |         |           |         |  |              | 481    |         |       |          |        |          |   |         | 841    |        
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total current assets                       |         |       | 360     |            |         |            | 1,673   |  |              |        | 14,035  |       |          |         |         |   |         |        | 16,068  | 
|Intercompany receivable                        |                                       |                                            |        |       |         |            |        |            |         |  | 44,678       |        |         |       | (44,678  | )       |          |   |        |       
|Investment in subsidiaries                     |                                       |                                            | 273,905 |       |         |            | 382,642 |            |         |  |             |        |         |       | (656,547 | )       |          |   |        |       
|Property and equipment, net                    |                                       |                                            | 387     |       |         |            |        |            |         |  | 34,748       |        |         |       |         |         |          |   | 35,135  |       
|Intangible assets, net                         |                                       |                                            |        |       |         |            |        |            |         |  | 293,673      |        |         |       |         |         |          |   | 293,673 |       
|Goodwill, net                                  |                                       |                                            | 1,599   |       |         |            |        |            |         |  | 24,050       |        |         |       |         |         |          |   | 25,649  |       
|Other assets                                   |                                       |                                            | 8,984   |       |         |            | 2,242   |            |         |  | 438          |        |         |       | (8,888   | )       |          |   | 2,776   |       
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total assets                               |         | $     | 285,235 |            |         | $          | 386,557 |  |              | $      | 411,622 |       |          | $       | (710,113 | ) |         | $      | 373,301 | 
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|LIABILITIES AND
    STOCKHOLDERS EQUITY       |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|Current liabilities:                           |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |          |         |          |   |         |       
|                                               | Current portion of long-term debt     |                                            | $       | 60    |         |            | $       | 812        |         |  | $            |       |         |       | $        |        |          |   | $       | 872    |        
|                                               | Accounts payable and accrued expenses |                                            |         | 1,047 |         |            |         | 172        |         |  |              | 5,867  |         |       |          |        |          |   |         | 7,086  |        
|                                               | Intercompany payable                  |                                            |         |      |         |            |         | 44,678     |         |  |              |       |         |       |          | (44,678 | )        |   |         |       |        
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total current liabilities                  |         |       | 1,107   |            |         |            | 45,662  |  |              |        | 5,867   |       |          |         | (44,678  | ) |         |        | 7,958   | 
|Long-term debt, less current portion           |                                       |                                            | 330     |       |         |            | 66,688  |            |         |  |             |        |         |       |         |         |          |   | 67,018  |       
|Deferred taxes and other long-term liabilities |                                       |                                            |        |       |         |            | 302     |            |         |  | 23,113       |        |         |       | (8,888   | )       |          |   | 14,527  |       
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total liabilities                          |         |       | 1,437   |            |         |            | 112,652 |  |              |        | 28,980  |       |          |         | (53,566  | ) |         |        | 89,503  | 
|Stockholders equity                           |                                       |                                            | 283,798 |       |         |            | 273,905 |            |         |  | 382,642      |        |         |       | (656,547 | )       |          |   | 283,798 |       
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         
|                                               |                                       | Total liabilities and stockholders equity |         | $     | 285,235 |            |         | $          | 386,557 |  |              | $      | 411,622 |       |          | $       | (710,113 | ) |         | $      | 373,301 | 
|                                               |                                       |                                            |         |       |         |            |         |            |         |  |              |        |         |       |         

63



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidating Statements of Cash Flows


(in thousands)


Year Ended December 31, 2004


|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |         |  
|------------------------------------------------ | ------------------------------------------------------------ | --- | - | ------ | --- | ---------- | ----- | ---------- | - | - | ------------ | ------- | ----- | - | - | - |  | - | ----- | ------- | -
|                                                 |                                                              |     |   |        |     | Subsidiary |       |            |   |   |             
|                                                 |                                                              | RCI |   |        | RBI |            |       | Guarantors |   |   | Eliminations |         | Total |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |  
|Cash flows from operating activities:            |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Cash flows (used in) provided by operating activities        |     | $ | (6,962 | )   |            | $     | (3,723     | ) |   | $            | 28,894  |       |   | $ |  |  |   | $     | 18,209  |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Cash flows from investing activities:            |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Acquisitions of radio stations and related acquisition costs |     |   |       |     |            |       | (14,203    | ) |   |              |        |       |   |   |  |  |   |       | (14,203 | )
|                                                 | Capital expenditures                                         |     |   | (87    | )   |            |       | (3,756     | ) |   |              |        |       |   |   |  |  |   |       | (3,843  | )
|                                                 | Net proceeds from sale of long-lived assets                  |     |   |       |     |            |       |           |   |   |              | 30      |       |   |   |  |  |   |       | 30      |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|                                                 | Net cash (used in) provided by investing activities          |     |   | (87    | )   |            |       | (17,959    | ) |   |              | 30      |       |   |   |  |  |   |       | (18,016 | )
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Cash flows from financing activities:            |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Principal payments on long-term debt                         |     |   | (60    | )   |            |       | (10,313    | ) |   |              |        |       |   |   |  |  |   |       | (10,373 | )
|                                                 | Repayment of capital lease obligations                       |     |   |       |     |            |       |           |   |   |              | (165    | )     |   |   |  |  |   |       | (165    | )
|                                                 | Long-term debt borrowings                                    |     |   |       |     |            |       | 19,000     |   |   |              |        |       |   |   |  |  |   |       | 19,000  |  
|                                                 | Purchase of treasury shares                                  |     |   | (8,996 | )   |            |       |           |   |   |              |        |       |   |   |  |  |   |       | (8,996  | )
|                                                 | Payment of financing/issuance costs                          |     |   |       |     |            |       | (86        | ) |   |              |        |       |   |   |  |  |   |       | (86     | )
|                                                 | Net transfers from/(to) subsidiaries                         |     |   | 16,105 |     |            |       | 12,654     |   |   |              | (28,759 | )     |   |   |  |  |   |       |        |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|                                                 | Net cash provided by (used in) financing activities          |     |   | 7,049  |     |            |       | 21,255     |   |   |              | (28,924 | )     |   |   |  |  |   |       | (620    | )
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Decrease in cash and cash equivalents            |                                                              |     |  |        |     |            | (427  | )          |   |   |             |         |       |   |  |   |  |   | (427  | )      
|Cash and cash equivalents at beginning of period |                                                              |     |  |        |     |            | 1,673 |            |   |   |             |         |       |   |  |   |  |   | 1,673 |        
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Cash and cash equivalents at end of period       |                                                              | $   |  |        |     | $          | 1,246 |            |   | $ |             |         |       | $ |  |   |  | $ | 1,246 |        
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  

64



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidating Statements of Cash Flows


(in thousands)


Year Ended December 31, 2003


|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |         |  
|------------------------------------------------ | ------------------------------------------------------------ | --- | - | ------ | --- | ---------- | ----- | ---------- | - | - | ------------ | ------- | ----- | - | - | - |  | - | ----- | ------- | -
|                                                 |                                                              |     |   |        |     | Subsidiary |       |            |   |   |             
|                                                 |                                                              | RCI |   |        | RBI |            |       | Guarantors |   |   | Eliminations |         | Total |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |  
|Cash flows from operating activities:            |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Cash flows (used in) provided by operating activities        |     | $ | (6,573 | )   |            | $     | (5,077     | ) |   | $            | 25,628  |       |   | $ |  |  |   | $     | 13,978  |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Cash flows from investing activities:            |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Acquisitions of radio stations and related acquisition costs |     |   |       |     |            |       | (63,322    | ) |   |              |        |       |   |   |  |  |   |       | (63,322 | )
|                                                 | Capital expenditures                                         |     |   | (32    | )   |            |       | (5,001     | ) |   |              |        |       |   |   |  |  |   |       | (5,033  | )
|                                                 | Net proceeds from sale of long-lived assets                  |     |   |       |     |            |       |           |   |   |              | 29      |       |   |   |  |  |   |       | 29      |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|                                                 | Net cash (used in) provided by investing activities          |     |   | (32    | )   |            |       | (68,323    | ) |   |              | 29      |       |   |   |  |  |   |       | (68,326 | )
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Cash flows from financing activities:            |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Principal payments on long-term debt                         |     |   | (60    | )   |            |       | (81,969    | ) |   |              |        |       |   |   |  |  |   |       | (82,029 | )
|                                                 | Repayment of capital lease obligations                       |     |   |       |     |            |       |           |   |   |              | (154    | )     |   |   |  |  |   |       | (154    | )
|                                                 | Long-term debt borrowings                                    |     |   |       |     |            |       | 138,500    |   |   |              |        |       |   |   |  |  |   |       | 138,500 |  
|                                                 | Purchase of treasury shares                                  |     |   | (992   | )   |            |       |           |   |   |              |        |       |   |   |  |  |   |       | (992    | )
|                                                 | Payment of financing/issuance costs                          |     |   |       |     |            |       | (1,960     | ) |   |              |        |       |   |   |  |  |   |       | (1,960  | )
|                                                 | Net transfers from/(to) subsidiaries                         |     |   | 7,657  |     |            |       | 17,846     |   |   |              | (25,503 | )     |   |   |  |  |   |       |        |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|                                                 | Net cash provided by (used in) financing activities          |     |   | 6,605  |     |            |       | 72,417     |   |   |              | (25,657 | )     |   |   |  |  |   |       | 53,365  |  
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Decrease in cash and cash equivalents            |                                                              |     |  |        |     |            | (983  | )          |   |   |             |         |       |   |  |   |  |   | (983  | )      
|Cash and cash equivalents at beginning of period |                                                              |     |  |        |     |            | 2,656 |            |   |   |             |         |       |   |  |   |  |   | 2,656 |        
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  
|Cash and cash equivalents at end of period       |                                                              | $   |  |        |     | $          | 1,673 |            |   | $ |             |         |       | $ |  |   |  | $ | 1,673 |        
|                                                 |                                                              |     |   |        |     |            |       |            |   |   |              |         |       |   |  

65



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidating Statements of Cash Flows


(in thousands)


Year Ended December 31, 2002


|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |         |  
|------------------------------------------------ | ------------------------------------------------------------ | --- | - | ------- | --- | ---------- | ----- | ---------- | - | - | ------------ | ------- | ----- | - | - | - |  | - | ----- | ------- | -
|                                                 |                                                              |     |   |         |     | Subsidiary |       |            |   |   |             
|                                                 |                                                              | RCI |   |         | RBI |            |       | Guarantors |   |   | Eliminations |         | Total |  
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |  
|Cash flows from operating activities:            |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Cash flows (used in) provided by operating activities        |     | $ | (3,094  | )   |            | $     | (2,651     | ) |   | $            | 16,728  |       |   | $ |  |  |   | $     | 10,983  |  
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |  
|Cash flows from investing activities:            |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Acquisitions of radio stations and related acquisition costs |     |   |        |     |            |       | (6,248     | ) |   |              |        |       |   |   |  |  |   |       | (6,248  | )
|                                                 | Capital expenditures                                         |     |   |        |     |            |       | (3,856     | ) |   |              |        |       |   |   |  |  |   |       | (3,856  | )
|                                                 | Net proceeds from sale of long-lived assets                  |     |   |        |     |            |       |           |   |   |              | 1,829   |       |   |   |  |  |   |       | 1,829   |  
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |  
|                                                 | Net cash (used in) provided by investing activities          |     |   |        |     |            |       | (10,104    | ) |   |              | 1,829   |       |   |   |  |  |   |       | (8,275  | )
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |  
|Cash flows from financing activities:            |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |   |   |  |   |       |        
|                                                 | Net proceeds from issuance of common stock                   |     |   | 75,785  |     |            |       |           |   |   |              |        |       |   |   |  |  |   |       | 75,785  |  
|                                                 | Principal payments on long-term debt                         |     |   | (60     | )   |            |       | (80,600    | ) |   |              |        |       |   |   |  |  |   |       | (80,660 | )
|                                                 | Long-term debt borrowings                                    |     |   |        |     |            |       | 5,000      |   |   |              |        |       |   |   |  |  |   |       | 5,000   |  
|                                                 | Purchase of treasury shares                                  |     |   | (1,122  | )   |            |       |           |   |   |              |        |       |   |   |  |  |   |       | (1,122  | )
|                                                 | Payment of equity issuance costs                             |     |   | (820    | )   |            |       |           |   |   |              |        |       |   |   |  |  |   |       | (820    | )
|                                                 | Net transfers (to)/from subsidiaries                         |     |   | (70,689 | )   |            |       | 89,246     |   |   |              | (18,557 | )     |   |   |  |  |   |       |        |  
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |  
|                                                 | Net cash provided by (used in) financing activities          |     |   | 3,094   |     |            |       | 13,646     |   |   |              | (18,557 | )     |   |   |  |  |   |       | (1,817  | )
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |  
|Increase in cash and cash equivalents            |                                                              |     |  |         |     |            | 891   |            |   |   |             |         |       |   |  |   |  |   | 891   |        
|Cash and cash equivalents at beginning of period |                                                              |     |  |         |     |            | 1,765 |            |   |   |             |         |       |   |  |   |  |   | 1,765 |        
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |  
|Cash and cash equivalents at end of period       |                                                              | $   |  |         |     | $          | 2,656 |            |   | $ |             |         |       | $ |  |   |  | $ | 2,656 |        
|                                                 |                                                              |     |   |         |     |            |       |            |   |   |              |         |       |   |  



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







66



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












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



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





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



67



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





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





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





|                        |  |       |         |  |        |  |         |       |  |  |         |  |  |       |         |  |        |  |         |  |  |  |         | 
|----------------------- |  | ----- | ------- |  | ------ |  | ------- | ----- |  |  | ------- |  |  | ----- | ------- |  | ------ |  | ------- |  |  |  | ------- | 
|                        |  | 2004  |         |  | 2003   |  |         | 2002  | 
|                        |  |       |         |  |        |  |         |       | 
|                        |  | ISOs |         |  | NQSOs |  |         | ISOs |  |  | NQSOs  |  |  | ISOs |         |  | NQSOs | 
|                        |  |       |         |  |        |  |         |       |  |  |         |  |  |       |         |  |        | 
|Dividends               |  |       | None    |  |        |  | None    |       |  |  | None    |  |  |       | None    |  |        |  | None    |  |  |  | None    | 
|Volatility              |  |       | 61.0%   |  |        |  | 61.0%   |       |  |  | 60.3%   |  |  |       | 60.4%   |  |        |  | 53.5%   |  |  |  | 53.5%   | 
|Risk-free interest rate |  |       | 3.38%   |  |        |  | 3.42%   |       |  |  | 3.16%   |  |  |       | 3.10%   |  |        |  | 4.70%   |  |  |  | 4.68%   | 
|Expected Term           |  |       | 5 years |  |        |  | 5 years |       |  |  | 5 years |  |  |       | 5 years |  |        |  | 5 years |  |  |  | 5 years | 



68



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                        |  |      |         |  |      |  |         |      |  |  |         | 
|----------------------- |  | ---- | ------- |  | ---- |  | ------- | ---- |  |  | ------- | 
|                        |  | 2004 |         |  | 2003 |  |         | 2002 | 
|                        |  |      |         |  |      |  |         |      | 
|Dividends               |  |      | None    |  |      |  | None    |      |  |  | None    | 
|Volatility              |  |      | 59.0%   |  |      |  | 59.4%   |      |  |  | 53.5%   | 
|Risk-free interest rate |  |      | 3.41%   |  |      |  | 2.80%   |      |  |  | 1.66%   | 
|Expected Term           |  |      | 5 years |  |      |  | 5 years |      |  |  | 5 years | 



|                                                 |                      |        |  |                  |                |  |   |      | 
|------------------------------------------------ | -------------------- | ------ |  | ---------------- | -------------- |  | - | ---- | 
|                                                 |                      |        |  | Weighted Average |               
|                                                 |                      | Shares |  |                  | Exercise Price | 
|                                                 |                      |        |  |                  |                | 
|Company options held by employees and Directors: |                      |        |  |                  |                |  |   |     
|                                                 | At December 31, 2001 |        |  | 2,609,685        |                |  | $ | 5.77 | 
|                                                 | Granted              |        |  | 522,000          |                |  | $ | 6.95 | 
|                                                 | Exercised            |        |  | (16,074          | )              |  | $ | 1.86 | 
|                                                 | Forfeited/expired    |        |  | (32,750          | )              |  | $ | 7.51 | 
|                                                 |                      |        |  |                  |                | 
|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 | 
|                                                 |                      |        |  |                  |                | 



|               |  |                     |           |                  |                     |  |                  |                |  |   |        |                  |  |                |           |  |  |   |      | 
|-------------- |  | ------------------- | --------- | ---------------- | ------------------- |  | ---------------- | -------------- |  | - | ------ | ---------------- |  | -------------- | --------- |  |  | - | ---- | 
|               |  | Options Outstanding |           |                  | Options Exercisable | 
|               |  |                     |           |                  |                     | 
|               |  |                     |           | Weighted Average |                     |  |                  |                | 
|               |  |                     |           | Remaining        |                     |  |                  |                | 
|               |  |                     |           | Contractual      |                     |  | Weighted Average |                |  |   |        | Weighted Average | 
|Exercise Price |  | Shares              |           |                  | Life (Years)        |  |                  | Exercise Price |  |   | Shares |                  |  | Exercise Price |          
|               |  |                     |           |                  |                     |  |                  |                |  |   |        |                  |  |                |          
|$6.13  $7.83  |  |                     | 1,758,373 |                  |                     |  | 7.3              |                |  | $ | 7.09   |                  |  |                | 789,850   |  |  | $ | 7.36 | 
|$5.00  $6.00  |  |                     | 2,116,416 |                  |                     |  | 4.7              |                |  | $ | 5.21   |                  |  |                | 1,568,316 |  |  | $ | 5.07 | 
|               |  |                     |           |                  |                     |  |                  |                |  |   |        |                  |  |                |          
|               |  |                     | 3,874,789 |                  |                     |  |                  |                |  |   |        |                  |  |                | 2,358,166 |  |  |   |      | 
|               |  |                     |           |                  |                     |  |                  |                |  |   |        |                  |  |                |          



69



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





|                                                                                                                |                    |                                                                                                |        |   |      |   |        |      |      |   |        |   |       |  
|--------------------------------------------------------------------------------------------------------------- | ------------------ | ---------------------------------------------------------------------------------------------- | ------ | - | ---- | - | ------ | ---- | ---- | - | ------ | - | ----- | -
|                                                                                                                |                    | Year Ended December 31,                                                                        |       
|                                                                                                                |                    |                                                                                                |       
|                                                                                                                |                    | 2004                                                                                           |        |   | 2003 |   |        | 2002 |     
|                                                                                                                |                    |                                                                                                |        |   |      |   |        |      |     
|Net income (loss) from continuing operations before cumulative
    effect of accounting change                  |                    | $                                                                                              | 6,443  |   |      | $ | 4,882  |      |      | $ | (822   | )
|Income from discontinued operations, net of applicable income
    taxes of $4,422, $532, and $281, respectively |                    |                                                                                                | 6,792  |   |      |   | 824    |      |      |   | 480    |  
|Cumulative effect of accounting change, net of applicable income
    taxes of $3,762                            |                    |                                                                                                |       |   |      |   |       |      |      |   | (6,138 | )
|                                                                                                                |                    |                                                                                                |        |   |      |   |        |      |     
|Net income (loss)                                                                                               |                    | $                                                                                              | 13,235 |   |      | $ | 5,706  |      |      | $ | (6,480 | )
|                                                                                                                |                    |                                                                                                |        |   |      |   |        |      |     
|Weighted average basic common shares                                                                            |                    |                                                                                                | 45,780 |   |      |   | 46,515 |      |      |   | 43,177 |  
|Dilutive effect of stock options and warrants                                                                   |                    |                                                                                                | 384    |   |      |   | 322    |      |      |   |       |  
|                                                                                                                |                    |                                                                                                |        |   |      |   |        |      |     
|Weighted average diluted common shares                                                                          |                    |                                                                                                | 46,164 |   |      |   | 46,837 |      |      |   | 43,177 |  
|Net income (loss) per common share:                                                                             |                    |                                                                                                |        |   |      |   |        |      |      |   |        |  
|                                                                                                                | Basic and diluted: |                                                                                                |        |   |      |   |        |      |      |   |        |   |      
|                                                                                                                |                    | Net income (loss) from continuing operations before cumulative
    effect of accounting change |        | $ | 0.14 |   |        | $    | 0.10 |   |        | $ | (0.02 | )
|                                                                                                                |                    | Discontinued operations                                                                        |        |   | 0.15 |   |        |      | 0.02 |   |        |   | 0.01  |  
|                                                                                                                |                    | Cumulative effect of accounting change                                                         |        |   |     |   |        |      |     |   |        |   | (0.14 | )
|                                                                                                                |                    |                                                                                                |        |   |      |   |        |      |     
|                                                                                                                |                    | Net income (loss)                                                                              |        | $ | 0.29 |   |        | $    | 0.12 |   |        | $ | (0.15 | )
|                                                                                                                |                    |                                                                                                |        |   |      |   |        |      |     

70



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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







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



|                                       |       |                   |       |       |                   |   |       |          |  |   |              |     |  |   |     |     | 
|-------------------------------------- | ----- | ----------------- | ----- | ----- | ----------------- | - | ----- | -------- |  | - | ------------ | --- |  | - | --- | --- | 
|                                       |       | December 31, 2004 |       |       | December 31, 2003 |  
|                                       |       |                   |       |       |                   |  
|                                       |       | Gross             |       |       |                   |   | Gross |          |  |  
|                                       |       | Carrying          |       |       | Accumulated       |   |       | Carrying |  |   | Accumulated  |    
|                                       |       | Amount            |       |       | Amortization      |   |       | Amount   |  |   | Amortization |    
|                                       |       |                   |       |       |                   |   |       |          |  |   |              |    
|Non-compete agreements                 |       | $                 | 1,426 |       |                   | $ | 685   |          |  | $ | 762          |     |  | $ | 458 |    
|Pre-sold advertising contracts         |       |                   | 969   |       |                   |   | 969   |          |  |   |             |     |  |   |    |    
|Sports right and employment agreements |       |                   | 944   |       |                   |   | 167   |          |  |   |             |     |  |   |    |    
|                                       |       |                   |       |       |                   |   |       |          |  |   |              |    
|                                       | Total |                   | $     | 3,339 |                   |   | $     | 1,821    |  |   | $            | 762 |  |   | $   | 458 | 
|                                       |       |                   |       |       |                   |   |       |          |  |   |              |    



71



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|             |  |              |         |  |              |   |         | 
|------------ |  | ------------ | ------- |  | ------------ | - | ------- | 
|             |  | December 31, |         |  | December 31, |  
|             |  | 2004         |         |  | 2003         |  
|             |  |              |         |  |              |  
|FCC licenses |  | $            | 307,598 |  |              | $ | 293,369 | 
|             |  |              |         |  |              |  
|Total        |  | $            | 307,598 |  |              | $ | 293,369 | 
|             |  |              |         |  |              |  





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



|                                |                              |          |        |        |  
|------------------------------- | ---------------------------- | -------- | ------ | ------ | -
|                                |                              | Goodwill |       
|                                |                              |          |       
|Balance as of December 31, 2002 |                              | $        | 24,200 |       
|                                | Adjustments                  |          |        | (110   | )
|                                | Acquisition related goodwill |          |        | 1,559  |  
|                                |                              |          |       
|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 |       
|                                |                              |          |       





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



|                       |  |      |       |   |      |   |       |      |  |   |       |  
|---------------------- |  | ---- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                       |  | 2004 |       |   | 2003 |   |       | 2002 | 
|                       |  |      |       |   |      |   |       |      | 
|Current federal        |  | $    |      |   |      | $ |      |      |  | $ | (46   | )
|Current state          |  |      | 298   |   |      |   | 102   |      |  |   | 93    |  
|                       |  |      |       |   |      |   |       |      | 
|Total current          |  |      | 298   |   |      |   | 102   |      |  |   | 47    |  
|                       |  |      |       |   |      |   |       |      | 
|Deferred federal       |  |      | 4,156 |   |      |   | 3,299 |      |  |   | 2,189 |  
|Deferred state         |  |      | 789   |   |      |   | 483   |      |  |   | 239   |  
|                       |  |      |       |   |      |   |       |      | 
|Total deferred         |  |      | 4,945 |   |      |   | 3,782 |      |  |   | 2,428 |  
|                       |  |      |       |   |      |   |       |      | 
|Valuation allowance    |  |      | (678  | ) |      |   | (454  | )    |  |   | 4,405 |  
|                       |  |      |       |   |      |   |       |      | 
|Net income tax expense |  | $    | 4,565 |   |      | $ | 3,430 |      |  | $ | 6,880 |  
|                       |  |      |       |   |      |   |       |      | 

72



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                          |                                    |                                |   |         |         |   |   |         |         |  
|------------------------- | ---------------------------------- | ------------------------------ | - | ------- | ------- | - | - | ------- | ------- | -
|                          |                                    | 2004                           |   |         | 2003    |  
|                          |                                    |                                |   |         |         |  
|Deferred tax assets:      |                                    |                                |   |         |         |   |   |        
|                          | Net operating loss carryforwards   |                                | $ | 16,404  |         |   | $ | 16,209  |        
|                          | Miscellaneous accruals and credits |                                |   | 272     |         |   |   | 346     |        
|                          | Accounts receivable reserve        |                                |   | 321     |         |   |   | 330     |        
|                          |                                    |                                |   |         |         |  
|                          |                                    | Total deferred tax assets      |   |         | 16,997  |   |   |         | 16,885  |  
|                          |                                    |                                |   |         |         |  
|                          | Valuation allowance                |                                |   | (3,273  | )       |   |   | (3,951  | )      
|                          |                                    |                                |   |         |         |  
|                          | Net deferred tax assets            |                                |   | 13,724  |         |   |   | 12,934  |        
|                          |                                    |                                |   |         |         |  
|Deferred tax liabilities: |                                    |                                |   |         |         |   |   |        
|                          | Property and equipment             |                                |   | (1,818  | )       |   |   | (1,241  | )      
|                          | Intangible assets                  |                                |   | (35,401 | )       |   |   | (25,524 | )      
|                          |                                    |                                |   |         |         |  
|                          |                                    | Total deferred tax liabilities |   |         | (37,219 | ) |   |         | (26,765 | )
|                          |                                    |                                |   |         |         |  
|                          |                                    | Net deferred tax liabilities   |   | $       | (23,495 | ) |   | $       | (13,831 | )
|                          |                                    |                                |   |         |         |  





73



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                              |  |      |      |   |      |  |      |      |  |  |       |  
|------------------------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ----- | -
|                                                              |  | 2004 |      |   | 2003 |  |      | 2002 | 
|                                                              |  |      |      |   |      |  |      |      | 
|Federal tax expense at statutory rate                         |  |      | 34.0 | % |      |  | 34.0 | %    |  |  | 34.0  | %
|Amortization of intangibles and other non-deductible expenses |  |      | 0.7  |   |      |  | 0.5  |      |  |  | 0.5   |  
|Increase (decrease) of valuation allowance                    |  |      | (6.2 | ) |      |  | (5.5 | )    |  |  | 72.7  |  
|Expiration of net operating losses                            |  |      | 3.4  |   |      |  | 7.6  |      |  |  | 3.9   |  
|State tax, net of federal tax benefit                         |  |      | 9.0  |   |      |  | 6.6  |      |  |  | 5.4   |  
|Other                                                         |  |      | 0.6  |   |      |  | (1.9 | )    |  |  | (2.9  | )
|                                                              |  |      |      |   |      |  |      |      | 
|Effective tax rate                                            |  |      | 41.5 | % |      |  | 41.3 | %    |  |  | 113.6 | %
|                                                              |  |      |      |   |      |  |      |      | 



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





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



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





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



74



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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



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



|                              |                            |      |         |        |      |   |         |        | 
|----------------------------- | -------------------------- | ---- | ------- | ------ | ---- | - | ------- | ------ | 
|                              |                            | 2004 |         |        | 2003 |  
|                              |                            |      |         |        |      |  
|Equipment                     |                            | $    | 37,392  |        |      | $ | 37,791  |       
|Furniture and fixtures        |                            |      | 2,361   |        |      |   | 1,989   |       
|Building and improvements     |                            |      | 13,416  |        |      |   | 9,145   |       
|Land and improvements         |                            |      | 4,415   |        |      |   | 4,424   |       
|                              |                            |      |         |        |      |  
|                              |                            |      | 57,584  |        |      |   | 53,349  |       
|Less accumulated depreciation |                            |      | (20,640 | )      |      |   | (18,214 | )     
|                              |                            |      |         |        |      |  
|                              | Net property and equipment |      | $       | 36,944 |      |   | $       | 35,135 | 
|                              |                            |      |         |        |      |  





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



|                              |  |      |       |  |      |   |       | 
|----------------------------- |  | ---- | ----- |  | ---- | - | ----- | 
|                              |  | 2004 |       |  | 2003 |  
|                              |  |      |       |  |      |  
|Accrued interest              |  | $    | 141   |  |      | $ | 184   | 
|Accrued professional fees     |  |      | 401   |  |      |   | 103   | 
|Accrued non-compete payments  |  |      | 100   |  |      |   | 200   | 
|Deferred revenue              |  |      | 393   |  |      |   | 266   | 
|Accrued state and local taxes |  |      | 177   |  |      |   | 18    | 
|Acquisition related accruals  |  |      | 211   |  |      |   | 445   | 
|Accrued other                 |  |      | 2,287 |  |      |   | 2,102 | 
|                              |  |      |       |  |      |  
|                              |  | $    | 3,710 |  |      | $ | 3,318 | 
|                              |  |      |       |  |      |  



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





75



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|                                            |  |           |       |  |         |   |     | 
|------------------------------------------- |  | --------- | ----- |  | ------- | - | --- | 
|                                            |  | Operating |       |  | Capital |  
|                                            |  | Leases    |       |  | Leases  |  
|                                            |  |           |       |  |         |  
|2005                                        |  | $         | 1,253 |  |         | $ | 125 | 
|2006                                        |  |           | 1,199 |  |         |   | 66  | 
|2007                                        |  |           | 1,124 |  |         |   | 28  | 
|2008                                        |  |           | 1,021 |  |         |   | 13  | 
|2009                                        |  |           | 539   |  |         |   | 1   | 
|Thereafter                                  |  |           | 2,376 |  |         |   | 4   | 
|                                            |  |           |       |  |         |  
|Total minimum payments                      |  | $         | 7,512 |  |         |   | 237 | 
|                                            |  |           |       |  |         |  
|Amount representing interest                |  |           |       |  |         |   | 9   | 
|                                            |  |           |       |  |         |  
|Present value of net minimum lease payments |  |           |       |  |         | $ | 228 | 
|                                            |  |           |       |  |         |  



76



---



##### 



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 |        |        | Year  |  
|        |                                                     |                                                |   |        |         |   |   |          |        |   |         |        |        |       |  
|2004(3) |                                                     |                                                |   |        |         |   |   |          |        |   |         |        |        |       |   |        |        |  |   |       
|        | Net broadcast revenues:                             |                                                |   |        |         |   |   |          |        |   |         |        |        |       |   |        |        |  |   |        | 
|        |                                                     | Amount reported in previously issued Form 10-Q |   | $      | 17,826  |   |   | $        | 22,227 |   |         | $      | 22,454 |       |   | $      | 22,112 |  |   |        |  | 
|        |                                                     | Amount reclassified to discontinued operations |   |        | 432     |   |   |          |       |   |         |        |       |       |   |        |       |  |   |        |  | 
|        |                                                     |                                                |   |        |         |   |   |          |        |   |         |        |        |       |  
|        | Net broadcast revenues                              |                                                | $ | 17,394 |         |   | $ | 22,227   |        |   | $       | 22,454 |        |       | $ | 22,112 |        |  | $ | 84,187 | 
|        |                                                     |                                                |   |        |         |   |   |          |        |   |         |        |        |       |  
|        | Operating income:                                   |                                                |   |        |         |   |   |          |        |   |         |        |        |       |   |        |        |  |   |        | 
|        |                                                     | Amount reported in previously issued Form 10-Q |   | $      | 1,399   |   |   | $        | 4,720  |   |         | $      | 5,348  |       |   | $      | 3,095  |  |   |        |  | 
|        |                                                     | Amount reclassified to discontinued operations |   |        | (105    | ) |   |          | (100   | ) |         |        |       |       |   |        |       |  |   |        |  | 
|        |                                                     |                                                |   |        |         |   |   |          |        |   |         |        |        |       |  
|        | Operating income                                    |                                                | $ | 1,504  |         |   | $ | 4,820    |        |   | $       | 5,348  |        |       | $ | 3,095  |        |  | $ | 14,767 | 
|        |                                                     |                                                |   |        |         |   |   |          |        |   |         |        |        |       |  
|        | Income from continuing operations:                  |                                                |   |        |         |   |   |          |        |   |         |        |        |       |   |        |        |  |   |        | 
|        |                                                     | Amount reported in previously                  |   |        |         |   |   |          |        |   |         |        |        |       |   |        |        |  |   |        |  | 
|        |                                                     | issued Form 10-Q                               |   | $      | 350     |   |   | $        | 2,370  |   |         | $      | 2,496  |       |   | $      | 1,043  |  |   |        |  | 
|        |                                                     | Amount reclassified to discontinued operations |   |        | (94     | ) |   |          | (90    | ) |         |        |       |       |   |        |       |  |   |        |  | 
|        |                                                     |                                                |   |        |         |   |   |          |        |   |         |        |        |       |  
|        | 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   | 

77



---



##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |   |        |        |  |   |        |  | 
|------- | --------------------------------------------------- | ---------------------------------------------- | - | ------ | ------- | - | - | -------- | ------ |  | ------- | ------ | ------ | ----- | - | ------ | ------ |  | - | ------ |  | 
|        |                                                     | 1st                                            |   |        | 2nd     |   |   | 3rd      |        |  | 4th     |        |        |      
|        |                                                     | Quarter                                        |   |        | Quarter |   |   | Quarter  |        |  | Quarter |        |        |      
|        |                                                     | ended                                          |   |        | ended   |   |   | ended    |        |  | ended   |        |        | Total |  
|        |                                                     | March 31                                       |   |        | June 30 |   |   | Sept. 30 |        |  | Dec. 31 |        |        | Year  |  
|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |  
|2003(3) |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |   |        |        |  |   |       
|        | Net broadcast revenues:                             |                                                |   |        |         |   |   |          |        |  |         |        |        |       |   |        |        |  |   |        | 
|        |                                                     | Amount reported in previously issued Form 10-Q |   | $      | 16,733  |   |   | $        | 21,453 |  |         | $      | 21,353 |       |   | $      | 21,039 |  |   |        |  | 
|        |                                                     | Amount reclassified to discontinued operations |   |        | 1,808   |   |   |          | 2,031  |  |         |        | 1,784  |       |   |        | 1,794  |  |   |        |  | 
|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |  
|        | Net broadcast revenues                              |                                                | $ | 14,925 |         |   | $ | 19,422   |        |  | $       | 19,569 |        |       | $ | 19,245 |        |  | $ | 73,161 | 
|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |  
|        | Operating income:                                   |                                                |   |        |         |   |   |          |        |  |         |        |        |       |   |        |        |  |   |        | 
|        |                                                     | Amount reported in previously issued Form 10-Q |   | $      | 748     |   |   | $        | 4,635  |  |         | $      | 4,474  |       |   | $      | 3,680  |  |   |        |  | 
|        |                                                     | Amount reclassified to discontinued operations |   |        | (29     | ) |   |          | 762    |  |         |        | 581    |       |   |        | 357    |  |   |        |  | 
|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |  
|        | Operating income                                    |                                                | $ | 777    |         |   | $ | 3,873    |        |  | $       | 3,893  |        |       | $ | 3,323  |        |  | $ | 11,866 | 
|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |  
|        | Income from continuing operations:                  |                                                |   |        |         |   |   |          |        |  |         |        |        |       |   |        |        |  |   |        | 
|        |                                                     | Amount reported in previously issued Form 10-Q |   | $      | 110     |   |   | $        | 1,924  |  |         | $      | 2,137  |       |   | $      | 1,535  |  |   |        |  | 
|        |                                                     | Amount reclassified to discontinued operations |   |        | (70     | ) |   |          | 416    |  |         |        | 316    |       |   |        | 162    |  |   |        |  | 
|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |  
|        | Income from continuing operations                   |                                                | $ | 180    |         |   | $ | 1,508    |        |  | $       | 1,821  |        |       | $ | 1,373  |        |  | $ | 4,882  | 
|        |                                                     |                                                |   |        |         |   |   |          |        |  |         |        |        |       |  
|        | NET INCOME                                          |                                                | $ | 110    |         |   | $ | 1,924    |        |  | $       | 2,137  |        |       | $ | 1,535  |        |  | $ | 5,706  | 
|        | BASIC AND DILUTED NET INCOME PER COMMON SHARE(1)(2) |                                                |   |        |         |   |   |          |        |  |         |        |        |       |   |        |        |  |   |        | 
|        | Net income per common share                         |                                                | $ | 0.00   |         |   | $ | 0.04     |        |  | $       | 0.05   |        |       | $ | 0.03   |        |  | $ | 0.12   | 






|    |                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The sum of the quarterly net income 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 all four quarters in 2004 and 2003, net
    income per common share was the same for both the basic and
    diluted calculation.                  
|   
|(3) | The first and second quarters of 2004 and all four quarters of
    2003 have been restated for comparative purposes to remove the
    effect of discontinued operations. 

15.     Recently Issued Accounting
Pronouncements




78



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##### 



REGENT COMMUNICATIONS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Stock-Based
Compensation Plans




79



---



##### 



REGENT COMMUNICATIONS, INC.


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,                |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |      
|                                        | 2004(7) |            | $ | 868       |            |  |  | 536        |     |  |               |  |            |           |  | 560 |     |  | $ | 844   | 
|                                        | 2003    |            | $ | 854       |            |  |  | 908        |     |  |               |  |            |           |  | 894 |     |  | $ | 868   | 
|                                        | 2002    |            | $ | 719       |            |  |  | 819        |     |  |               |  |            |           |  | 684 |     |  | $ | 854   | 
|                                       
|Deferred tax asset valuation allowance: |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |      
|Years ended December 31,                |         |            |   |           |            |  |  |            |     |  |               |   |            |           |  |     |     |  |   |      
|                                        | 2004    |            | $ | 3,951     |            |  |  | 32         | (2) |  |               |  |            |           |  | 710 | (3) |  | $ | 3,273 | 
|                                        | 2003    |            | $ | 4,405     |            |  |  | 177        | (4) |  |               |  |            |           |  | 631 | (5) |  | $ | 3,951 | 
|                                        | 2002    |            | $ |          |            |  |  | 4,405      | (6) |  |               |  |            |           |  |    |     |  | $ | 4,405 | 






|    |                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents accounts written off to the reserve.                                                                                                      
|   
|(2) | Represents a valuation allowance recorded for state net
    operating loss carryforwards generated in 2004 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 2004.  
|   
|(4) | Represents a valuation allowance recorded for state net
    operating loss carryforwards generated in 2003 and scheduled to
    expire prior to 2017.
|   
|(5) | Represents the release of valuation allowance for federal and
    state net operating loss carryforwards that expired in 2003.                       
|   
|(6) | See Note 9 in the Notes to Consolidated Financial Statements.                                                                                        
|   
|(7) | Includes approximately $75 related to the disposition of the
    Duluth, Minnesota and Erie and Lancaster-Reading, Pennsylvania
    markets.         

80



---



##### 





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













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









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



81



---



##### 



PART III




|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.





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





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



|                                                           |  |                      |           |  |                   |                      |      |                      |  |  |           | 
|---------------------------------------------------------- |  | -------------------- | --------- |  | ----------------- | -------------------- | ---- | -------------------- |  |  | --------- | 
|                                                           |  |                      |           |  |                   | 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     |  |                      | 3,912,306 |  |                   | $                    | 6.06 |                      |  |  | 1,686,112 | 
|Equity compensation plans not approved by security holders |  |                      |          |  |                   |                      |     |                      |  |  |          | 
|                                                           |  |                      |           |  |                   |                      |      |                      | 
|Total                                                      |  |                      | 3,912,306 |  |                   | $                    | 6.06 |                      |  |  | 1,686,112 | 
|                                                           |  |                      |           |  |                   |                      |      |                      | 



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





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



82



---



##### 



PART IV




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

Financial Statements.




Financial Statement Schedules.




Exhibits.




83



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##### 



SIGNATURES






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



| |     |                    
| | --- | -------------------
| | By: | /s/ Terry S. Jacobs

| |                                      
| | -------------------------------------
| |                                      
| | Terry S. Jacobs,                     
| | Chairman of the Board,               
| | Chief Executive Officer and Treasurer





|                                                           |  |                                                                                                              |  |                |  | 
|---------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------ |  | -------------- |  | 
|Signature                                                  |  | Title                                                                                                        |  | Date          
|                                                           |  |                                                                                                              |  |               
|                                                          
|/s/ Terry S. JacobsTerry
    S. Jacobs                     |  | Chairman of the Board, Chief Executive Officer, Treasurer and
    Director (Principal Executive Officer)     |  | March 15, 2005
|                                                          
|/s/ William L. StakelinWilliam
    L. Stakelin             |  | President, Chief Operating Officer, Secretary and Director                                                   |  | March 15, 2005
|                                                          
|/s/ Anthony A.
    VasconcellosAnthony
    A. Vasconcellos |  | Senior Vice President and Chief Financial Officer (Principal
    Financial and Principal Accounting Officer) |  | March 15, 2005
|                                                          
|/s/ Hendrik J. Hartong,
    Jr.Hendrik
    J. Hartong, Jr. |  | Director                                                                                                     |  | March 15, 2005
|                                                          
|/s/ William H. IngramWilliam
    H. Ingram                 |  | Director                                                                                                     |  | March 15, 2005
|                                                          
|/s/ Timothy M. MooneyTimothy
    M. Mooney                 |  | Director                                                                                                     |  | March 15, 2005
|                                                          
|/s/ Richard H.
    PattersonRichard
    H. Patterson       |  | Director                                                                                                     |  | March 15, 2005
|                                                          
|/s/ William P. Sutter,
    Jr.William
    P. Sutter, Jr.   |  | Director                                                                                                     |  | March 15, 2005
|                                                          
|/s/ John H. WyantJohn
    H. Wyant                         |  | Director                                                                                                     |  | March 15, 2005

84



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##### 



EXHIBIT INDEX




|        |       |  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------- | ----- |  | ------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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)                                                                                                                                                                                                                                                                                                                                                  

E-1



---



##### 



|        |         |  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------- | ------- |  | ------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |         |  |                    
|Number  |         |  | Exhibit Description
|        |         |  |                    
|        | 3(i)*   |  |                     | Amended and Restated By-Laws of Regent Communications, Inc.
    (previously filed as Exhibit 3(b) to the Amendment
    No. 1 to the Registrants Form S-4 Registration
    Statement No. 333-46435 filed April 8, 1999 and
    incorporated herein by this reference)                                                                                                                                                                                                                                                                    
|        | 3(j)*   |  |                     | Amendments to By-Laws of Regent Communications, Inc. adopted
    December 13, 1999 (previously filed as Exhibit 3(h) 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)                                                                                                                                                                                                                                                 
|        | 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)*   |  |                     | 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(d)*   |  |                     | 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)*# |  |                     | Employment Agreement between Regent Communications, Inc. and
    Terry S. Jacobs (previously filed as Exhibit 10(e) to the
    Registrants Form 10-K for the year ended
    December 31, 2003 and incorporated herein by this reference)                                                                                                                                                                                                                                                                                                
|        | 10(h)*# |  |                     | Employment Agreement between Regent Communications, Inc. and
    William L. Stakelin (previously filed as Exhibit 10(f) to
    the Registrants Form 10-K for the year ended
    December 31, 2003 and incorporated herein by this reference)                                                                                                                                                                                                                                                                                            
|        | 10(i)*# |  |                     | Employment Agreement between Regent Communications, Inc. and
    Anthony A. Vasconcellos (previously filed as Exhibit 10(g)
    to the Registrants Form 10-K for the year ended
    December 31, 2003 and incorporated herein by this reference)                                                                                                                                                                                                                                                                                        
|        | 10(j)#  |  |                     | Schedule of Director Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

E-2



---



##### 



|        |        |  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------- | ------ |  | ------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |        |  |                    
|Number  |        |  | Exhibit Description
|        |        |  |                    
|        | 10(k)* |  |                     | 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(l)* |  |                     | 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(m)* |  |                     | 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(n)* |  |                     | 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(o)* |  |                     | 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)                                                                                                                                                                                                                                                
|        | 10(p)* |  |                     | 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(q)* |  |                     | 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)

E-3



---



##### 



|        |        |  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | ------ |  | ------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |        |  |                    
|Number  |        |  | Exhibit Description
|        |        |  |                    
|        | 10(r)* |  |                     | 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(s)* |  |                     | 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(t)* |  |                     | 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(u)* |  |                     | 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(v)* |  |                     | 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(w)* |  |                     | 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|        | 10(x)* |  |                     | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|        | 21     |  |                     | Subsidiaries of Registrant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|        | 23     |  |                     | 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.

E-4



---



##### 







| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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