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                       FEDERAL COMMUNICATIONS COMMISSION

                               ENFORCEMENT BUREAU

                                 WESTERN REGION

                             San Francisco  Office

                        5653 Stoneridge Drive, Suite 105

                              Pleasanton, CA 94588

                                 March 29, 2007

   1163 Associates

   La Jolla, CA 92037

                         NOTICE OF UNLICENSED OPERATION

   Case Number: EB-07-SF-042

   Document Number: W20073296007

   The San Francisco Office received information that an unlicensed broadcast
   radio station on 87.9 MHz was allegedly operating in San Francisco. On
   March 7, 2007, agents from this office confirmed by direction finding
   techniques that radio signals on frequency 87.9 MHz were emanating from
   the property at 1178 Bush Street, Apartment 701, San Francisco California.
   Public records list you as the owner of the property. The Commission's
   records show that no license was issued for operation of a broadcast
   station at this location on 87.9 MHz in San Francisco, California.

   Radio stations must be licensed by the FCC pursuant to 47 U.S.C. S 301.
   The only exception to this licensing requirement is for certain
   transmitters using or operating at a power level that complies with the
   standards established in Part 15 of the Commission's Rules, 47 C.F.R. SS
   15.1 et seq. The operation on frequency 87.9 MHz was measured at 710
   microvolts per meter (uV/m) at 288 meters. This exceeds the allowable
   unlicensed limit of 100 uV/m at 3 meters established in Part 15. Thus,
   this station is operating in violation of 47 U.S.C. S 301.

   You are hereby warned that operation of radio transmitting equipment
   without a valid radio station authorization constitutes a violation of the
   Federal laws cited above and could subject the operator of this illegal
   operation to severe penalties, including, but not limited to, substantial
   monetary forfeitures, in rem arrest action against the offending radio
   equipment, and criminal sanctions including imprisonment. (See 47 U.S.C.
   SS 401, 501, 503 and 510.)

   UNLICENSED OPERATION OF THIS RADIO STATION MUST BE DISCONTINUED
   IMMEDIATELY.

   You have ten (10) days from the date of this notice to respond with any
   evidence that you have authority to operate granted by the FCC. Your
   response should be sent to the address in the letterhead and reference the
   listed case and document number. 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 to determine what, if any,
   enforcement action is required to ensure your compliance with FCC Rules.
   This will include any information that you disclose in your reply.

   You may contact this office if you have any questions.

   Thomas N. Van Stavern

   District Director

   San Francisco Office

   Western Region

   Enforcement Bureau

   Attachments:

   Excerpts from the Communications Act of 1934, As Amended

   Enforcement Bureau, "Inspection Fact Sheet," March 2005

   cc: Bay Area Properties

   172 Golden Gate Ave.

   San Francisco, CA 94102-3810