WHYY INC

<p><strong mso-bidi-font-style: normal">First</em>, a weekly news and information magazine program dedicated to serving Delaware that explores issues ranging from the economy and education to arts and culture; <em >Flicks</em>, featuring film critic Patrick Stoner&#8217;s reporting on top films and film stars; <em >On Stage at Curtis</em>, presenting student recitals taped at the world-renowned Curtis Institute of Music.</p> <p>All of WHYY&#8217;s television programming is also available on WHYY.org/video as streaming content.</p> <p><strong >Morning Edition</em> and <em mso-bidi-font-style: normal">Fresh Air with Terry Gross</em>, covering the popular culture and public affairs and heard by about 5 million people each week on 500 public radio stations; <em >Radio Times</em>, a thought-provoking, engaging and timely program that tackles issues of concern in the Delaware Valley and beyond; <em >Skytalk</em>, a discussion of what&#8217;s new and interesting in astronomy with Dr. Derrick Pitts and WHYY-FM&#8217;s Dave Heller; <em >Voices in the Family</em>, featuring Dr. Dan Gottlieb and guest experts, who join thoughtful callers to discuss issues that affect individuals and society; and <em >Online programs</strong></p> <p>NewsWorks.org is a news and information Web service that features multimedia storytelling, participatory content, a network of content partners and a &#8220;hyperlocal&#8221; focus on Northwest Philadelphia.</p> <p><strong >Education services</strong></p> <p>Lifelong learning has always been at the core of WHYY&#8217;s mission. WHYY broadcasts more than 60 hours of educational programming for children each week and supplements that content with workshops and events featuring popular PBS Kids characters and related activities. The Dorrance H. Hamilton Public Media Commons is embodies WHYY&#8217;s mission to teach community members to express themselves through digital media. Hamilton Commons puts state-of-the-art equipment into hands of teens, teachers and adults of all ages and instructs them in audio and video production, shooting and lighting techniques, sound recording and digital editing.</p>

<div>The 2011 fiscal year was another positive year for WHYY measured in terms of financial results, an increase in the number of members and continued growth in the percentage of our budget invested in programs and other content.</div><div>&nbsp;</div><div>We recorded an overall increase in net assets of $1 million following an increase of $2.2 million the previous year. The positive outcomes are the result of a combination of careful management of expenses and improved results in membership, corporate underwriting and other grants. The increase in net assets means that for the sixth year out of the past seven, our total revenues exceeded expenditures, thereby providing additional resources for investment in our community programs and activities.</div><div>&nbsp;</div><div>WHYY signed agreements to acquire the five former New Jersey Network radio stations in southern New Jersey. This ensured the residents of New Jersey continue to have access to trusted news and information programming. It also expanded our already substantial New Jersey radio coverage area to the Jersey shore.</div><div>&nbsp;</div><div>The Dorrance H. Hamilton Public Media Commons offered a full schedule of media courses, hosted many member events and generated income from rental activity. Preliminary results indicate that members who attend events at the Commons renew their support at higher rates than average, further reducing the cost of the renewal process. NewsWorks.org, our online home for regional news and civic dialogue, launched in November 2010 and has earned critical claim and a growing number of users.</div><div>&nbsp;</div><div>The 2011 fiscal year represented the sixth year of growth in production and broadcasting expenses as a percentage of WHYY's total budget, while costs of fundraising and general and administrative expenses continued their downward trend. In other words, more and more of your contributions are being invested in programs and services, with only 7 percent of all expenditures for general and administrative costs. We were also able to negotiate more favorable terms for managing our line of credit and long-term financing.</div><div>&nbsp;</div><div>With continued growth in the WHYY-FM audience, we grew the number of members in our files by 1.6 percent compared with declines at most other major public media stations. We also recorded another year of net member revenue increases and a 9 percent increase in the number of automatically renewing members.</div><div>&nbsp;</div>Overall, fiscal year 2011 was a very positive year for WHYY, and we are in a strong position to continue building our programs and services for Pennsylvania, New Jersey and Delaware.