The following is a transcript of comments on todays’ teleconference to announce U.S. Soccer’s decision to sign a 12-year marketing deal with International management Group (IMG) and Nike. Alan Rothenberg, U.S. Soccer president. General comments: “I’m extremely pleased to announce a partnership between the U.S. Soccer Federation and International Management Group, the worldwide sports marketing, sponsorship, and television production and sales leader… The scheduling, promotion and direct revenue of all national team games will remain within the U.S. Soccer Federation… The agreement is for a 12-year period of time and will include World Cup and Olympic qualifying, as well as friendly internationals for both the men’s and women’s national teams… During this period we should approach 500 million dollars in revenue… We’re very excited about this partnership and appreciate the confidence and support of IMG.” What was the deciding factor in the selecting IMG… “I don’t think we can point to one particular thing that led to the decision. We were delighted beyond belief to have so many groups bidding for our rights. In analyzing every element, we decided IMG was going to be the best offer for U.S. Soccer. If there was one thing perhaps, it was the tremendous ongoing reputation for IMG and especially TWI in the field of television.” How does this agreement affect U.S. Soccer’s Project 2010 initiative… “To me it assures the success of our Project 2010 initiative because it provides the exposure and financial support to realize our dreams and be there in 2010, with the chance to win the World Cup on the men’s side, and for the women keeping them in the position to win forever.” Where does this leave U.S. Soccer Properties… “In respect to U.S. Soccer Properties, the company was formed to expose our brand and realize the maximum potential of our marketing rights, and with the Nike deal and now this IMG deal, it looks like Properties has already made an amazing impact. Now, Properties will be even more important in regards to continuing our branding and staging our games in the best possible way, and ensuring our relationships with our partners are strong and that our brand continues to be strong.” Differences between previous agreement with API and new agreement with IMG… “API was strictly an agent on our behalf. The previous agreement wasn’t a joint venture with the granting of rights. That was a principal agency relationship, and this is a joint venture relationship.” On being in the hypothetical position of possibly choosing between TV revenue or TV exposure, should the case arise: “The agreement calls for minimum amounts within our TV exposure, anything over and above that we will deal with at the time. Even though there are some guarantees, the fact is that we are partners. Neither partner will do something without the other. Something special about it is IMG is responsible for our TV issues, but also for our marketing and licensing agreements, so the need to look at the big picture is there for everyone.” On the current TV agreement with ABC and ESPN: “Our current contracts run though the end of this year and will be honored in every respect, of course. Later this year, we will open negotiations for new contracts that are consistent with this agreement and our existing Nike agreement.” On the agreement’s affect on the development of women’s pro league: “I don’t think it changes any of our thinking, but it is one more stamp of approval for the future of a women’s pro league in the United States. Every time you have an endorsement of this magnitude, it makes the women’s league more inevitable. It’s going to happen pretty soon.” Asked about U.S. Soccer’s current marketing arrangement: “Our current agreement goes through 1998, unless some interim arrangement can be worked out.” Bob Kain, Senior Executive Vice President of IMG, North America: General comments: “IMG are very happy and proud to be part of the USSF. This is a fully integrated package in regards to the relationship between the two groups. TWI brings a great TV subsidiary to the table… With Transworld International, with our licensing division, with our experience working with major properties, like Wimbledon and Major League Baseball… These are the elements that make U.S. Soccer such an attractive element for us to approach the advertising community with.” “We like what the U.S. Soccer has been doing. We appreciate their vision, especially with Project 2010 in mind. Together, I think we have a great team. One of the first things we will do is to look on a worldwide level and look to produce programs that promote a larger audience.” “From a sponsorship and TV standpoint, dealing with a gold medal winning team, with Mia Hamm winning the ESPY for most popular female athlete. We see a very undervalued asset in women’s soccer, and we think that will be a big bonanza for us in terms of TV dollars and sponsorship dollars.” “Again, we are very excited about the women’s side of this. We really think women’s soccer will be the biggest women’s sport in America, along with basketball. Those will be the big two.” “U.S. Soccer has done a great job elevating the profile of the sport in this country… As it continues to grow, we felt it was important for us to be in this (partnership) for the long run. You won’t see lightning bolts here, but you will see these guys (USSF) continue to do a tremendous job marketing the sport.” Bob Horowitz, Senior Vice President & Director of U.S. Sales, Television and Programming, Transworld International On the television aspects of the agreement: “In the current relationship with ESPN and ABC, both of these entities have first right of refusal, and we plan to talk to both of them. The way we are approaching U.S. Soccer as an entity is at a zero base, with a look toward new things. Like children’s programming, developmental programming. We’re looking at merging mediums, like the internet, as well as the electronic media. These are all things we will explore in an effort to figure our a way to drive TV ratings which will translate to more dollars for the entity.” Expanding on plans to target children’s programming: “The conventional way in which soccer has been displayed on U.S. television has been, well, very conventional. We think that the new negotiations involving both the men’s and women’s teams, could have many different looks. The NBA has done a great job with Inside Stuff on NBC, taking their sport to a younger audience. There are the Lifetime Network, networks like Nickelodeon, there are a lot of options to explore. Ideas like that, whether it be targeting women or kids, are what we are looking at.” More television comments: “As Alan said, there are existing contracts already. Our exclusive negotiation period begins on Aug. 1, when we will sit down with the USSF and sponsors and see what is the best way to display soccer on TV, whether that be on one cable network or two, or something else. Obviously there will be a step looking at networks, but we know and respect the great relationship that already exists with ABC, ESPN and Disney.” About the production of matches within this agreement: “We have extensive expertise from our UK office. We certainly want to display the matches as well as possible.” Asked about the TV rights to the 2002 World Cup: “The rights are not part of this deal and we are not party to this. Suffice it to say, we are all in the soccer TV business together. We are looking to play off the successes of Major League Soccer, World Cup qualifying and the women’s national team. Obviously, we hope to boost all TV ratings across the board for soccer.”