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Week ending July 26, 2008

Arbitron plans to increase the Persons 12+ sample target
from Thom Mocarsky/ARBITRON

Arbitron Inc. today announced a new Portable People MeterTM sample program which was presented at the July Arbitron Radio Advisory Council meeting. The program is designed to deliver a larger 12+ sample target. The company also announced an increase in its 18-54 sample size guarantee from 80 to 90 percent and raised other key sample benchmarks in PPM markets. Arbitron will announce additional details of the PPM sample plan and the effective dates of the individual components in the coming weeks.

“The PPM sample program we unveiled at the Advisory Council Meeting is a significant step forward,” said Steve Morris, chairman, president and chief executive officer, Arbitron Inc. “The Advisory Council deserves credit from the industry for providing Arbitron with insights and input over the last few months which enabled us to raise the bar regarding these key PPM sample metrics,” continued Mr. Morris.

Key components of the PPM sample plan debuted at the July 2008 Arbitron Radio Advisory Council include:

Increasing the Persons 12+ sample target by ten percent
Increasing the threshold for the Persons 18-54 sample size guarantee from 80 percent to 90 percent
Raising the PPM sample benchmarks for total Persons 6+ from 90 to 100 percent.
Increasing the sample benchmarks for 18-34 from 70-75 percent at month six, prior to the 80 percent benchmark for year two and beyond.

Persons 12+ sample target to increase by ten percent at no cost to customers

Arbitron plans to increase the Persons 12+ sample target in current and future PPM markets by ten percent.

Arbitron is considering several approaches for achieving the Persons 12+ sample target including, among other means, an increase to the cell phone only household sampling rate, redistributing children 6-11 sample and/or the introduction of sample stratification. The specific combinations of approaches are pending the outcome of methodological tests and further industry consultation.

Arbitron plans to implement the increase in Person 12+ sample target in phases, beginning in 2009, with completion currently expected by the end of 2010.

Persons 18-54 sample guarantee threshold to increase from 80 to 90 percent

Arbitron also announced two changes to its previously disclosed Persons 18-54 PPM sample size guarantee. First, the current guarantee threshold of 80 percent will now take effect in each PPM local market with the first month of PPM currency in that market instead of the fourth. Second, starting on the first anniversary of PPM currency in the local market, the threshold for the Persons 18-54 sample size guarantee will be raised to 90 percent of the sample target as determined based on a 13-report monthly rolling average.

Persons 6+ benchmark to increase from 90 to 100 percent

The company plans two changes to its persons 6+ benchmark. The current benchmark of 90 percent of the sample target for persons 6+ will take effect in the first month of currency instead of the fourth. Starting on the first anniversary of PPM currency in a market, the Persons 6+-sample benchmark will be raised from 90 to 100 percent of the sample target based on a 13-report monthly rolling average.

18-34 demographic benchmark to increase from 70 percent to 75 percent at month six

Arbitron’s new sample plan involves three elements for its 18-34 benchmarks. First, the current benchmark – 70 percent of target – will take effect with the first currency report instead of the current approach, which begins on the fourth month. Second, the benchmark will be raised to 75 percent of target with the sixth currency report. Lastly, the 18-34 benchmark will increase to 80 percent of target effective with first anniversary of PPM currency in a market based on a 13-report monthly rolling average.

The 18-34 benchmarks apply (depending on market population) to the following gender, race and ethnicity breaks: Persons, Men, Women, Black, Hispanic and Other.

Industry feedback

“We will review the specific methods by which we plan to achieve these enhancements with the Media Rating Council and the NAB Committee on Local Radio Audience Measurement (COLRAM),” said Mr. Morris.

Arbitron intends to provide a more detailed summary of the plan along with milestones and timelines in the weeks to come.