NEWSReport No. MM 98-9       MASS MEDIA ACTION          June 25, 1998

                         INITIAL DECISION REVOKING THE LICENSES AND CONSTRUCTION PERMITS OF
CONTEMPORARY MEDIA, INC., CONTEMPORARY BROADCASTING, INC., AND LAKE
BROADCASTING, INC., AFFIRMED
(MM Docket No. 95-154)
  
    The Commission has affirmed the initial decision of Administrative Law Judge Arthur I. Steinberg
revoking the licenses and construction permits held by Contemporary Media, Inc., Contemporary
Broadcasting, Inc., and Lake Broadcasting, Inc. and denying Lake's application for a new station because of
violations of laws relating to repeated sexual abuse of children by the stations' sole owner and
misrepresentations by the licensees.  

    Contemporary Media is the licensee of WBOW(AM), WZZQ(AM), and WZZQ(FM)of Terre Haute,
IN,  Contemporary Broadcasting, Inc. is the licensee of KFMZ(FM), Columbia, MO,  and permittee of
KAAM(FM), Huntsville, MO.  Lake Broadcasting, Inc. is the licensee of KBMX(AM), Eldon, MO, and
permittee of KFXE(AM), Cuba, MO.

    Michael Rice is President, Treasurer, and a member of the Board of Directors of the three
corporations, as well as their sole owner.  In August 1994, Rice was convicted of twelve felonies involving
the sexual assaults of five children ranging from under fourteen to sixteen years of age that occurred over a
five year period.  He is currently incarcerated.

    The FCC initiated this revocation proceeding to determine the impact of Rice's convictions on the
licensees' qualifications and to determine whether Rice had been excluded from the management and
operation of the stations subsequent to his arrest, as had been argued by the licensees.  The ALJ also
resolved in the licensees' favor a third issue to determine whether Rice engaged in an unauthorized transfer
of control of the stations. 

    The FCC concluded that, although there was no unauthorized transfer of control, Rice's felony
convictions and the licensees' misrepresentations and lack of candor regarding his role at the stations
constituted grounds for the disqualification of the licensees.  The Commission found that Rice had been
engaged in consultative and programming activities at the stations, as well as in the hiring of their
personnel, demonstrating misrepresentation and a lack of candor on the part of the licensees.  In view of this
conclusion, the Commission agreed with the ALJ's determination that all of the licensees' authorizations
should be revoked and the new station application denied.

    Action by the Commission June 22, 1998, by Decision (FCC 98-133).  Chairman Kennard,
Commissioners Ness, Furchtgott-Roth, Powell, and Tristani.
 -FCC-
    News Media contact:  Megan Stull at (202) 418-0500.