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   June 12, 2007

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED

   Video Only

   7922 Dublin Blvd.

   Dublin, CA 94568-2925

   Video Only, Inc.

   500 Strander Blvd.

   Seattle, WA 98188-2921

   Attn.: Peter Edwards, President

   Re: File No. EB-07-SF-115

   Citation No.: C20073296015

   Dear Retailer:

   This is an official CITATION, issued pursuant to Section 503(b)(5) of the
   Communications Act of 1934, as amended ("Act"), 47 U.S.C. S 503(b)(5), to
   Video Only and Video Only, Inc. (collectively "Video Only") for failure to
   provide appropriate Consumer Alert disclosures on analog tuner only
   television receiving equipment in violation of Section 15.117(k) of the
   Commission's Rules ("Rules"), 47 C.F.R. S 15.117(k). As explained below,
   future violations of the Commission's rules in this regard may subject
   your company to monetary forfeitures.

   On June 8, 2007, an agent from the Enforcement Bureau's San Francisco
   District Office visited Video Only store and observed that Video Only did
   not have the proper Consumer Alert label displayed on equipment that
   contained an analog tuner but not a digital tuner at the point of sale.

   Section 15.117(k) of the Commission's Rules states:


     (k) The following requirements apply to all  responsible parties, as    
     defined in S2.909 of this chapter, and any person that displays or      
     offers for sale or rent television receiving equipment that is not      
     capable of receiving, decoding and tuning digital signals.              
                                                                             
     (1) Such parties and persons shall place conspicuously and in close     
     proximity to such television broadcast receivers a sign containing, in  
     clear and conspicuous print, the Consumer Alert disclosure text         
     required by subparagraph (3). The text should be in a size of type      
     large enough to be clear, conspicuous and readily legible, consistent   
     with the dimensions of the equipment and the label. The information     
     may be printed on a transparent material and affixed to the screen, if  
     the receiver includes a display, in a manner that is removable by the   
     consumer and does not obscure the picture, or, if the receiver does     
     not include a display, in a prominent location on the device, such as   
     on the top or front of the device, when displayed for sale, or the      
     information in this format may be displayed separately immediately      
     adjacent to each television broadcast receiver offered for sale and     
     clearly associated with the analog-only model to which it pertains.     
                                                                             
     (2) If such parties and persons display or offer for sale or rent such  
     television broadcast receivers via direct mail, catalog, or electronic  
     means, they shall prominently display in close proximity to the images  
     or descriptions of such television broadcast receivers, in clear and    
     conspicuous print, the Consumer Alert disclosure text required by       
     subparagraph (3). The text should be in a size large enough to be       
     clear, conspicuous, and readily legible, consistent with the            
     dimensions of the advertisement or description.                         
                                                                             
     (3) "CONSUMER ALERT                                                     
                                                                             
     This television receiver has only an analog broadcast tuner and will    
     require a converter box after February 17, 2009, to receive             
     over-the-air broadcasts with an antenna because of the Nation's         
     transition to digital broadcasting. Analog-only TVs should continue to  
     work as before with cable and satellite TV services, gaming consoles,   
     VCRs, DVD players, and similar products. For more information, call     
     the Federal Communications Commission at 1-888-225-5322 (TTY:           
     1-888-835-5322) or visit the Commission's digital television website    
     at: [1]www.dtv.gov."                                                    


   Accordingly, it appears that Video Only has violated Section 15.117(k)(1)
   of the Rules by failing to place a label on the following equipment in a
   location so that it is "clearly associated with the analog-only model to
   which it pertains:"


     Manufacturer   Device     Model #     Number of Units  

     Panasonic      DVDR       DMR EZ17    1                

     Panasonic      DVDR/VCR   DMR-EZ37V   1                

     Toshiba        TV         13A26       1                

     Toshiba        TV/DVD     MD14F52     1                

     Toshiba        TV         20AF46      1                

     Toshiba        TV         24AF46      1                


   It also appears that Video Only has violated Section 15.117(k)(1) of the
   Rules by failing to place a label with the exact language contained in
   Section 15.117(k)(3) on or in close proximity to the equipment listed in
   the preceding paragraph.

   We caution you that failure to display an appropriate Consumer Alert label
   on any television receiving equipment that is not capable of receiving,
   decoding and tuning digital signals would constitute a further violation
   of Section 15.117(k) of the Rules.

   If, after receipt of this citation, Video Only  engages in conduct of the
   type described herein, in violation  of the Communications Act or the
   Commission's rules, the Commission may impose monetary forfeitures not to
   exceed $11,000 for each such violation or each day of a continuing
   violation up to $97,500 for a single continuing violation.

   If you choose to do so, you may respond to this citation within 10 days
   from the date of this letter either through (1) a personal interview at
   the Commission's Field Office nearest to your place of business, or (2) a
   written statement. Your response should specify the actions that Video
   Only is taking to ensure that it does not violate Section 15.117(k) of the
   Commission's rules in the future.

   If you choose to request a personal interview, the closest FCC Office is
   Federal Communications Commission, 5653 Stoneridge Drive, Pleasanton,
   California. You should contact this office by telephone, (XXX) XXXX-XXXX
   to schedule this interview, which must take place within 10 days of this
   Citation. Alternatively, as noted above, Video Only may submit a written
   statement to the above address within 10 days of the date of this
   Citation. Any written statements should specify what actions have been
   taken to correct the violations outlined above. Please reference file
   number EB-07-SF-115 when corresponding with the Commission.

   Under the Privacy Act of 1974, 5 U.S.C. S 552a(e)(3), we are informing you
   that the Commission's staff will use all relevant material information
   before it, including information that you disclose in your interview or
   written statement, to determine what, if any, enforcement action is
   required to ensure your compliance with the Communications Act and the
   Commission's rules.

   The knowing and willful making of any false statement, or the concealment
   of any material fact, in reply to this citation is punishable by fine or
   imprisonment under 18 U.S.C. S 1001.

   Thank you in advance for your anticipated cooperation.

   Sincerely,

   FEDERAL COMMUNICATIONS COMMISSION

   Thomas N. Van Stavern

   District Director, San Francisco District Office

   Western Region

   Enforcement Bureau

   See 47 C.F.R. S 1.80(b)(3).

   47 U.S.C. S 503(b)(5).

   2

                       FEDERAL COMMUNICATIONS COMMISSION

                             WASHINGTON, D.C. 20554

References

   Visible links
   1. http://www.dtv.gov/