The AzA Gazette AZTECA AMERICA

The Azteca America Monthly Newsletter for Clients, Friends and Associates

July 2003 ¥ Number 8 ¥ Year 1

• Ventaneando To Broadcast from entire network. Los Angeles is the Events & Ceasar’s Palace in Las Vegas p. 3 largest and one of the most Features • Enamórate Novela Debuts on Azteca America p. 4 demanding Hispanic markets, and we feel that the station offers an important branding tool as it will Azteca America allow us to strengthen our channel begins to operate image and promotions capabilities. So far, it has been an incredibly KAZA-TV in enriching experience to learn from the lean operations that Pappas Los Angeles Telecasting Companies had in place at this station and I would like to This month marks Azteca America’s take this occasion to thank Mr. managerial control of its Los Harry Pappas and his seasoned Angeles affiliate KAZA-TV under team of broadcasting professionals the terms of a local marketing for a seamless transition. agreement (LMA). In addition, Azteca America es Azteca America now has an option This month we are also celebrating to purchase KAZA-TV from the sta- tu KAZA! a second-place finish of Azteca’s- tion owner Pappas Telecasting. own Monarcas Morelia soccer I am very excited and proud to team and an exciting on-site trans- The operation of the Los Angeles announce to the Gazette’s Reader’s mission of Ventaneando from station is a great leap for Azteca that on July 1, Azteca America Ceasar’s Palace in Las Vegas. America. The LA market area has Network took control of the opera- the highest concentration of tions of its flagship station, KAZA, Finally, I would like to take this Hispanics in the United States, Channel 54 in Los Angeles, under a opportunity to welcome our seven million, equivalent to 40% of local marketing agreement (LMA) newest affiliates, KPSW Channel the population of LA, and 16% of signed with Pappas Telecasting 43 in Phoenix and KQBN Channel Hispanic households across the Companies. In addition to the LMA 14 in Tucson. It’s great to have you country. As a full power station agreement, Azteca America has on board. with complete cable coverage, the obtained a purchase option for the pioneer affiliate of Azteca America station (please see adjoining article). Please enjoy this month’s Gazette, is the flagship of the entire Azteca America network. KAZA represents an important plat- Luis J. Echarte form for increased promotion in the President and CEO continued p. 4 Los Angeles area, as well as for our Azteca America

Station Spotlight: WTPH Channel 14 • Ft. Myers 2 Azteca America adds two affiliates in Arizona 2 About Pati Chapoy 3 Names & Faces • Operations and Traffic Managers 5 Monarcas Continue String of Second-Place Finishes 5 AzA Coverage / Contacts Content 6

www.aztecaamerica.com 1 AzA Gazette The Azteca America Newsletter

Station ment company, Gastón was a pioneer in home financing as Azteca America Spotlight: well as building for the Hispanic community in Cape Coral, hav- adds two affili- WTPH Channel 14 ing helped over 5,000 residents become homeowners. ates in Arizona Ft. Myers, Florida One of the local programming initiatives scheduled to be on the Azteca America announced José Blanco air in coming months is a show this month two new affiliates, President to help recent residents navigate KPSW Channel 43 in Phoenix through the red tape necessary and KQBN Channel 14 in Despite being less than a three to become home buyers. Tucson. With the addition of hour drive from Miami, the these two cities, Azteca Hispanic demographics of Ft. By September, José hopes to America reaches 26 markets, Myers-Cape Coral are much clos- have a total of six local commu- covering 63% of Hispanic er to that of the western portion nity programs. The first two pro- households and introduces its of the United States. grams, a medical advice show programming to the ninth and transmitted from a local hospital twenty-fourth largest Hispanic “The Hispanic population here is and a call-in show on communi- markets in the United States, similar to that of California or ty issues broadcast from the respectively. Texas,” said José Blanco, presi- mayor’s office, could be ready in dent of WTPH Channel 14 in two weeks. Other local initiatives With the addition of Phoenix, Cape Coral, where he estimates in the works are a newscast, an Azteca America is now viewed that about 70% of the residents immigration legal rights show, in twelve of the top fifteen are Mexican, followed by and a social justice show. Hispanic markets. The popula- Colombians, Cubans and Puerto tion of Phoenix is 23% Ricans. A new building that will house Hispanic, of whom 87% are of Royal West Properties, as well Mexican origin, 2% are Puerto And although the combined as an entire floor for WTPH’s Rican, and 11% are Cuban, population of Ft. Myers and three studio sets and offices is Central or South American. Cape Coral is less than 500,000, expected to be ready in coming Hispanics in Phoenix represent it is interesting to note that more weeks. a youthful community, showing new houses are built here annu- a median age of 27 years, com- ally than in Miami, with a popu- José describes his work experi- pared to 35 years for the city’s lation three times as large. ence as being always related to total population. the Hispanic community. He has This translates to well-paid con- produced and hosted Spanish- The importance of the Hispanic struction jobs, an important language radio, served in the community is also evident in source of purchasing power for military, held the position of Tucson, as 32% of the popula- many Hispanic residents. José business manager of WQBA tion is Hispanic. A breakdown sees this as translating into an radio in Miami, and founded an by nationality shows that 90% attractive market for Azteca advertising agency. are Mexican, 1% are Puerto America. And the station owner Rican and 9% are Cuban and CEO, Gastón Cantens is like- With WTPH on the air since April Central or South American. ly to get a two-fold benefit from 26, José says that most of his the growth. recent energy has been focused In Arizona as a whole, one out on spreading the word of Azteca of every four people is Hispanic, Both Cuban-born and childhood America. He said he is currently of which 82% are Mexican. friends, José and Gastón have a negotiating barters with several The U.S. Census predicts that long history of close contact of the 14 Hispanic publications Arizona’s Hispanic population with the Hispanic community. As in the Ft. Myers-Cape Coral area will nearly double by the year founder of Royal West as well as with KEBUENA radio 2025. Properties, a real estate develop- station. www.aztecaamerica.com 2 AzA Gazette The Azteca America Newsletter

Ventaneando To About Pati stage coordinator for Siempre en Domingo, Bella Época, Estrellas de Broadcast From Chapoy los 80’s and Galardón a los Ceasar’s Palace Grandes. Born in a humble family in Her work as a showbiz television in Las Vegas Cuernavaca, Morelos, Pati began journalist began with the pioneer- her journalism career as a messen- ing format of El Mundo del ger in an economist’s office, Espectáculo. One of Azteca America’s most where she supplemented her popular entertainment shows, income with articles for small Following 20 years at , she Ventaneando will be broadcasting magazines. joined TV Azteca first as Advisor live from Ceasar’s Palace in Las to the Administrative Board and Vegas on July 9, 10 and 11. After graduating from the Escuela later as Production Director for En de Periodismo Carlos Septién Medio del Espectáculo. The on-site broadcasts are the García journalism school, she got start of a promotional tour and her first staff reporting job at In 1996, she launched the highly an added plus for viewers. Diseño magazine, where she com- successful Ventaneando, which pleted with freelance articles for showcases her incisive critiques, Ventaneando, with seven years the publication Contenido and a wit and solid entertainment on the air in TV Azteca, is host- radio program Clave W. reporting. ed by Pati Chapoy, Pedro Sola, Mónica Garza, Aurora Valle and She worked her way up to the She has also produced the music Daniel Bisogno, and offers the editor of the Sunday supplement programs: Alfa Dance, Corazón best in entertainment news and of Novedades newspaper and Grupero, Top Ten, Neon Nights commentary on your favorite director of ’s Vanidades and Hit Popular; as well as the Latino stars. The transmissions magazine. entertainment programs Caiga will include an exclusive inter- quien Caiga, Atando Cabos, La view with pop star sensation Her first job in television was with Remolacha, El Ojo del Huracán Celine Dion. Televisa as a coordinator for and Con un Nudo en la México, Magia y Encuentro. This Garganta. Pati is married with was followed by work as a back two children.

The event is co-hosted by Las Vegas affiliate Azteca America KHDF, which offered key sup- port to make the transmissions a reality.

Don’t miss Ventaneando Monday through Friday at 6 PM PST and CST, and 7:00 EST.

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Enamórate About … Azteca America begins to operate KAZA-TV Novela Debuts on Born in Hermosillo, Sonora, in Los Angeles Yahir says he has always had a Azteca America passion for singing. He inherit- ed a joy for music from his fam- continued from p. 1 ily. His grandfather is a com- Hit novela sensation Enamórate is poser and taught Yahir his first “Azteca America offers a unique now showing on Azteca America. song, El Ranchito, at age seven. product that connects with a Following a debut on June 23, the He also taught Yahir how to dynamic Hispanic audience,” said drama featuring finalist play the guitar. Mario San Román COO of TV Yahir is proving to be an early success. Azteca. “Bringing our full pro- Growing up surrounded by gramming, including novelas, soc- Yahir plays a namesake lead oppo- cer, live shows, news and enter- site the young aspiring Martha musicians, he used to go on hol- tainment shows to Los Angeles Higareda, who plays Celeste. idays to a small town called Toniche, where he would sing represents an enormous opportuni- ty to enhance the Azteca America The novela is centered on an impos- together with banda and mari- brand equity throughout the entire sible love between Yahir, an affluent achi groups. His first gig in a network.” university student and Celeste, a cantina was also at age seven welder who has dreams of becom- with a mariachi group. Azteca America, which will provide ing a professional dancer. At the age of 18 he started his programming 24 hours a day, will be responsible for promotional Their romance faces the scorn of first regular singing work at a bar activities, leveraging the fact that Yahir’s father, played by Fernando called La Chuza, where he stayed KAZA-TV is a recognized name that Sarfati, especially when Yahir for six months until being offered has much to offer the network and decides to leave school to pursue a a performing opportunity in a its affiliates. Azteca America will singing career. The romance also hotel in Tijuana. also manage the team that will be confronts the jealousies of fellow La responsible for local and national Academia students-turned-actors However, it was being a finalist spot sales. María Inés and José Antonio. in TV Azteca’s hit reality show La Academia that launched Yahir’s “We are excited about the mutual Catch Enamórate Monday through recording and acting career. His benefits this transaction represents Friday at 7:00 pm PST and CST, and first CD, Alucinado has already for Azteca America and our com- 8:00 pm EST on Azteca America. gone platinum. pany. I sincerely wish Azteca America the best in their operation of KAZA,” said Harry J. Pappas, CEO of Pappas Telecasting.

With the operation of KAZA-TV, Azteca America expects more con- sistency between the network and station image and enhanced pro- motional activities. By taking advantage of Azteca America’s full programming schedule, the com- pany also expects to solidify the positioning of the network as a superior viewing alternative in the market. And watch for upcoming local productions such as news- casts and entertainment shows.

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Names & Faces Operations and Traffic Managers Esteban García Ricardo Becerra team officially as Traffic and Ricardo, sharing the same Traffic Operations manager under and Operations Manager title. Ricardo Becerra joined TV Azteca Jorge’s direction. in 1997 as a member of the com- Responsibilities for both Ricardo pany’s traffic department. Shortly Esteban García joined TV Azteca and Esteban include supervision afterward he moved to the sales in 1998 as a supervisor of traffic of network ad insertions, and department, working with net- and continuity of Azteca chan- support of local affiliates with work spots. He finally reached nels 7 and 13, responsible for general needs for local inser- manager of the direct sales coordinating programming and tions. They have the added department as part of the team ad insertions. He was also key in responsibility of promotion and led by current Azteca America the ISO-9002 certification special events for the network. operations director, Jorge Jaidar. process for the traffic area. Also Ricardo helped Azteca America’s a participant in the launching of With a growing schedule of pro- pilot operations at its KAZA affili- Azteca America’s first affiliate in motional events this year, expect ate in Los Angeles and later joined Los Angeles, Esteban joined the to see these faces soon in a the Azteca America Network Azteca America team along with DMA near you.

finals are determined by a goal had to settle for a second-place fin- Monarcas advantage, the Monarcas were ish. This is the second consecutive still in the running entering the season that the Monarcas finish as Continue String final game on their home field. season runner up. of Second-Place Fortunately for the business side, the final game in Morelia has set Finishes sales records for a single event in TV Azteca, which highlights the Despite finishing as the points importance of soccer finals, espe- leader of the Mexican Soccer cially with male audiences. Soccer League in regular season play, TV transmission rights are negotiated Azteca’s Monarcas Morelia had to for home games of participating settle as runner-up to the champi- games. TV Azteca and Azteca on Rayados de in the America had rights to a semifinal, defining Clausura tournament. as well as a final transmission given that its has both the Monarcas started off on a weak Tiburones and Monarcas under foot after losing the first of the contracts for transmissions. two-game final series 3-1. The team overcame a similar, albeit Stay tuned to Azteca America The loss was supported by a few lesser, disadvantage against the for the best in Mexican soccer controversial calls by referees and Tiburones of in the semifi- coverage. As for the next final, a weak show of the Monarcas tra- nal. However, a 0-0 tie in the final in remember, la tercera es la ven- ditionally stellar defense. Since the Morelia meant that the Monarcas cida!

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The Fastest Growing Hispanic Network in the U.S.

Fresno-Visalia Reno Las Vegas Salt Lake City KMSG Channel 55 KUVR Channel 68 KHDF Channel 19 KSVN Channel 66 1.9% 0.3% 0.9% 0.6% Coverage: 63%

San Francisco-Sacramento KTNC Channel 42 5.1% Bakersfield KPMC Channel 42 0.6% New York Monterey WNYN Channel 39 KMCE Channel 43 11.3% 0.6% Santa Barbara KSBT Channel 32 0.4% Orlando W21AU Channel 21 Los Angeles 1.2% KAZA Channel 54 West Palm Beach 16.3% WWHB Channel 48 Albuquerque Palm Springs Wichita 0.6% KQDF Channel 25 KYAV Channel 12 Phoenix KSMI Channel 51 2.1% 0.4% KPSW Channel 43 0.3% Miami 2.5% San Diego San Antonio WPMF Channel 38 Austin KZDF Channel 41 KTDF Channel 18 5.7% Tucson KADF Channel 20 Oklahoma City 2.0% 3.3% KQBN Channel 14 Victoria 1.1% KOHC Channel 38 Houston Ft. Myers 1.0% KBGS Channel 51 0.3% WTPH Channel 14 0.1% KAZH Channel 57 4.1% 0.3% * Note: KTNC-TV 42 covers the San Francisco and Sacramento DMA´s Source: Nielsen Universe Estimates, 2003, Hispanic households.

Contacts: Executives: Operations: About TV Azteca Luis J. Echarte Jorge Jaidar President and CEO (212) 207-8623 TV Azteca, listed on both the (212) 207-8839 011(5255) 3099-5739 Mexican Bolsa and the New York 011(5255) 3099-5777 [email protected] Stock Exchange, is the second largest producer of Spanish-language pro- Sales: Distribution and Affiliate Relations: gramming in the world, and one of Luis M. Cortés Phillip Woodie two nationwide broadcasters in (212) 207-8839 (212) 207-8535 Mexico. [email protected] 011(5255) 3099-9256 [email protected] Today TV Azteca broadcasts four net- KAZA Channel 54, L.A. works: the family-driven Azteca 13, Editorial Committee Eduardo Urbiola with 278 signals in Mexico; the Héctor Romero (818) 241-5400 youth-focused Azteca 7, with 270 Daniel McCosh [email protected] signals in Mexico; Azteca Linda Garcidueñas International for 13 countries in Elena Arceo Central and South America; and Luis M. Cortés Azteca America the fastest growing Juan Pablo Álvarez network in the U.S. Samantha Pescador A Grupo Salinas Company Carmen Lawrence www.gruposalinas.com.mx

This document does not constitute, nor shall it be construed under any circumstances, as an offer to sell or as a solicitation of an offer to buy Azteca America Network's signal, programming or any of its parts thereof. www.aztecaamerica.com 6