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Johannesburg, 5 March 2001 - The Johannesburg High Court has ruled in favour of the Independent Communications Authority of South Africa (ICASA) in a legal challenge on the regulator's decision to refuse the Capital Radio Licence to Kingdom Radio (Pty) LTD.

In his ruling Mr Justice Fevrier said, "the Authority had considered the application fully, properly and fairly. "The judge further stated that, "the Authority on the basis of all the evidence and material available, acted lawfully, reasonably and in a procedurally fair manner and that the decision was rational, justifiable and fair in all respects."

Kingdom Radio had applied for a private broadcasting licence for the 604 MW frequencies that was utilised by Capital Radio. ICASA's predecessor the Independent Broadcasting Authority refused to award Kingdom Radio or its competitor, Khulisani Investments (Pty) LTD. the licence. In terms of Kingdom Radio the reasons for refusal included:

* There was no participation by the historically disadvantaged people from the targeted areas, namely KwaZulu-Natal and the Eastern Cape

* The sole funder of the station would have been the Universal Church for the Kingdom of God (UCKG). ICASA is of the view that licensing an entity controlled by one religious group would not have been in the interest of the public and that this would not promote diversity of views and ownership as envisaged in the Constitution and the IBA Act.

Kingdom Radio, which was owned by the UCKG, instituted legal proceedings to have the Authority's decision reviewed and set aside at the Johannesburg High Court.

For further information, contact: Vimla Maistry at 011 722 0079/082 807 3965

Issued by Independent Communications Authority of South Africa (ICASA)

5 March 2001