Madeline A. Coblenz and William J. Mason - Page 5

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          interest in Modern World to Gnat Robot Corp.  Before the judgment           
          was entered against Modern World, Mr. and Mrs. White caused                 
          Modern World to seek bankruptcy protection.                                 
               During late 1991 and early 1992, several Texas newspapers              
          reported the Gnat lawsuit.  The newspaper headlines and                     
          underlying stories mostly described the Gnat lawsuit as a legal             
          fight between Mr. White and Mr. Perot.  Some of the articles,               
          however, made references to petitioner.  After the Gnat lawsuit,            
          petitioner unsuccessfully attempted to raise venture capital to             
          acquire other radio stations.                                               
          First City Bank Receivership                                                
               During 1992, the Federal Deposit Insurance Corporation (the            
          FDIC) took control of First City Bank for reasons unrelated to              
          the venture and established a receivership to liquidate its                 
          assets and pay off its debts.  An entity, First City Liquidating            
          Trust Loans, L.P. (FCLT), was created to receive any assets                 
          remaining after all debts had been paid and to distribute those             
          assets to a corporation that had obtained the rights to those               
          assets (purchasing corporation).  The FDIC set aside $20 million            
          of First City Bank’s assets to create a reserve for claims                  
          against and litigation expenses incurred for First City Bank.               
          Any funds remaining after the resolution of all claims against              
          First City Bank were to be transferred to FCLT.                             

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