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Internet Edition, October 25, 2000, Page 1


Burson-Marsteller has won the Texas Public Utility Commission's four-year, $36 million campaign to educate Texans about impending energy deregulation.

McCann-Erickson, paired with Interpublic sister company Shandwick, was among finalists.

B-M has Earle Palmer Brown as its ad partner. They ran a similar energy deregulation campaign in Pennsylvania.

B-M's Direct Impact grassroots unit will be involved in the Texas program, along with agencies specializing in minority markets, according to Mike Lake, head of B-M's Dallas office. They are Ware & Assocs. (African American consumers), Great Wall Enterprises (Asian-Americans), and Guera DeBerry (Hispanics). Ariesnet will handle web comms.


Golin/Harris Int'l has acquired Zimat Consultores, which it says is Mexico's biggest PR firm.

G/H plans to use ZC as its "expansion platform" for Latin America.

ZC, founded in 1980, has 64 staffers. Its senior partners Bruno Newman and Marta Mejia will run the firm that is being renamed Zimat Golin/Harris.

ZC's client list includes PepsiCo, Gillette, Lucent Technologies, Citibank, Banco Nacional de Mexico and Satelites Mexicanos.


Brodeur Worldwide president Andrea Carney has succeeded John Brodeur, 50, as CEO of Omnicom's Brodeur Worldwide unit, which has more than 800 employees. Brodeur will focus on international expansion. The firm also named Janet Swaysland, U.S./GM its president.

"Andy Carney has been the heart and soul of the U.S. operations for many years," said Brodeur.

The former high-tech journalist helped start BW's technology group in 1987.

Brodeur said Carney's job is to help BW clients prosper in the "global digital economy."

Carney told this newsletter she expects BW to rank No. 1 in high-tech fees, and on the top ten list of agencies within a few years.

BW ranked No. 7 in technology with $42.4 million in 1999 fees. It was No. 13 overall with $70.1M.

Swaysland joined BW in 1996, and opened BW offices in Raleigh and Washington, D.C.


Joann Killeen resoundingly defeated Art Stevens in the contested election for chair-elect of PR Society of America at the Assembly Oct. 21 at the Hyatt Regency in Chicago.

(continued on page 7)


Publicis is set to purchase Nelson Communications, a New York-based healthcare marketing communications company with annual revenues in the $150 million range.

The takeover negotiations are "in the final stages," according to a report in The Wall Street Journal.

NC is parent company of Sciens Worldwide PR.
In July, NC merged Nelson PR (formerly IssueSphere) and Community Access into SWPR.

SWPR, which is headed by Kathy Cripps, offers corporate communications, IR and "relationship management" services to pharmaceutical, biotechnology and healthcare companies.

Clients include Johnson & Johnson, Merck and Bristol-Myers Squibb.

The NC deal would help Publicis CEO Maurice Levy achieve his goal of having 30 percent of overall revenues from non-ad sources. That's up from the current 20 percent mark.


The Hawthorn Group, Arlington, Va., has picked up UDV N.A., the beer, wine and spirits division of Diageo, plc, as a client.

UDV brands include Johnnie Walker and J&B Scotch whiskies, Smirnoff vodka, Gordon's gin and Guinness stout.

Guy Smith, executive VP-external affairs at UDV, left Hawthorn earlier this year to join the Stamford-based company.

He previously had been COO of Hill and Knowlton and VP/corporate affairs at Philip Morris.


New York Times advertising columnist Stuart Elliott will discuss the relationship of PR and the media and where it's headed, Nov. 2 at The Sky Club in New York.

PRSA/NY, which is sponsor of the event, calls Elliott "the country's most powerful advertising/marketing writer."

Internet Edition, October 25, 2000, Page 2


The Eighth Edition of The Practice of Public Relations, by Fraser Seitel, covers the impact of the Internet on PR in each of its 20 chapters. British futurist Peter Cochrane is quoted as saying, "If you're not online, you don't exist."

The textbook, a new edition of which is pub-lished about every two years by Prentice-Hall, is used by more than 200 colleges and universities and has thus far sold more than 250,000 copies or 30-40,000 a year, said Seitel.

"Every chapter in the new edition has been changed," he added.

The University of Phoenix, which conducts classes via the web, ordered 5,000 copies last year, the biggest single order ever for a PR text.

PPR, which has color throughout, features interviews with a number of CEOs including Craig Weatherup of PepsiCo, John Horne of Navistar, and Dave Checketts of Madison Square Garden.

The 534-page text sells for $90. Seitel has his own PR firm and is also editor of The Strategist, quarterly publication of PR Society of America.


Larry Kramer, chairman of CBS, said PR Newswire and Business Wire have taken the "press" out of press release by ending a nearly 50-year-old tradition of giving releases to the press 15 minutes before releasing them directly to the public.

"The press release died" when the 15-minute delay was lifted, said Kramer. The "press release has now become just another infomercial, just another form of direct marketing, just another type of junk mail," said Kramer, who said the 15 minute policy allowed the press a few moments to digest the release and to bring some editorial intelligence to the process.

"Or, to be exact, try to tell the truth behind the company statement," he said in an Oct. 19 commentary on the website, which he started.


Gene Weingarten, a Washington Post columnist, recently wrote an article in which PR people told him about their most embarrassing moments.

Weingarten phoned 15 PR people, nine of whom "leaped at the chance to mortify themselves in print in return for a few meager lines of positive ink for their clients."
Lisa Morrice, 44, a publicist from California, told Weingarten about how her husband "dumped" her for a younger women.

Tom Coyne, 31, who runs his own firm in Fairfield, N.J., told Weingarten about the time he was handling a publicity event for Nabisco to introduce Mini Oreos.

He had rented a 70,000-pound cement mixer to dump Mini Oreos into a minivan through the sunroof. Coyne, who described himself as husky, said he jumped off the back of the cement mixer and "completely blew out my pants," exposing his briefs.

Alicia Levine, 28, a PR person for PAN Communications in Andover, Mass., "whispered" to Weingarten about the time she took off her pants at an intramural basketball game during her sophomore year in college and realized she was naked from the waist down.

She said the 200 fans in the stands gave her a standing ovation.


The new custom publishing division of Z Communications, Arlington, Va., has published the first issue of Amtrak's new onboard magazine, Arrive.

The magazine will be distributed free to customers riding all trains traveling along the Northeast corridor including passengers on Amtrak's high speed Acela service between Boston, New York and Washington, D.C., which is scheduled to go into service in December.

The magazine will be published six times a year, with a circulation growing to 200,000 by January.

Rise Birnbaum, publisher of Arrive and CEO of Z Comms., has taken over temporarily as editor, replacing Richard Brunelli, a former editor of Outside magazine, who left after the first issue of Arrive was published.


A federal appeals court has tossed out two rules that required broadcasters to give politicians and individuals free airtime to respond to political endorsement and personal attacks.

The order, which ends the "Fairness Doctrine," came a week after the FCC suspended the "personal attack" and "political editorial" rules for 60 days so that it could update its record on the regulations.

The court said it was taking the "extraordinary" action of ordering the FCC to permanently eliminate the rules because the agency had failed to justify a need for them. Broadcasters applauded the court decision, one they had been seeking since 1980.


Impromptu Gourmet, which makes and sells chef-designed, cook-it-yourself dinner kits in stores or via its Internet site (, has picked AgitProp, New York, as its PR/marketing agency.

The New York Times ran a story about IG's dinner kits in its Oct. 11 food section.


Gen. Barry McCaffrey announced his retirement Oct. 16 as director of the White House Office of National Drug Policy. He plans to leave in January, and will consider teaching offers or returning to West Point.

The White House drug office has been under attack by Republicans for "wasting money" in the ad campaign against drugs. Congress is probing whether Ogilvy & Mather overbilled the White House nearly $15 million on its anti-drug ad efforts.

Internet Edition, October 25, 2000, Page 3


The revamped "Extra," which begins its seventh season as a syndicated daily TV newsmagazine program, will be less reactive to the popular news of the day and more proactive in finding and covering interesting stories.

The show also will be celebrity-friendly, unlike the previous editions of the show, which had been blackballed by some PR firms (NL, 10/18).

That was the message given to several publicists who were invited to a special briefing on Oct. 11 in New York. They were briefed by Lisa Gregorisch-Dempsey, who is Extra's new senior executive producer, and Leeza Gibbons, the new host.

While Extra will continue to provide topical content on a daily basis, each episode will focus on several stories in order to deliver something "extra," and not just a rehash of stories that have already been covered at the local and national news level.

Divided into Five Units

Extra has divided its news operations into five units.
"Top Story" will focus on topical news and hard-hitting interviews with top newsmakers.

"Pop Culture and Celebrity" will cover trends and discover the stars of tomorrow, while also getting personal with celebrities in the "Xtra Profile."

The "Health and Beauty" segment will feature the latest medical breakthoughs and beauty trends. "Survivor" castaway, Dr. Sean Kenniff, who is the former neurological chief resident at Long Island Jewish Medical Center, serves as the show's medical correspondent in New York.

Attorney and consumer advocate Michael J. Bryant heads the "Consumer News" unit, and the "Sex and Relationships" unit offers advice and input from a team of experts in the field.

Offers Interactive Element

This fall, Extra goes interactive with a website that has been redesigned. The site ( will also be home to "The Extra Mile"-an interactive segment hosted by weekend anchor Steve Santagati.

From skydiving to mountain climbing to bungee jumping to hanging out with a rock band on the road, the segment takes its cameras, satellite tracking system and viewers on the trip of a lifetime.

Extra originates in Glendale, Calif., and has a bureau in New York, as well as correspondents and producers around the globe.

The show offers a half-hour edition every weekday and an original hour-long weekend installment, making it the only national magazine show that presents original episodes 52 weeks a year.

Its a Time Telepictures production and is distributed by Warner Bros. Domestic TV.

Neal Freundlich is executive producer and Steve Longo is co-executive producer.

Amy Prenner of L.B. Lipman PR, who handles publicity for Extra, is based in Los Angeles at 818/ 972-0589.


Bernard Holland, who has been the chief music critic of The New York Times for five years, was named national music critic, a new position.

Holland will review major concerts across the country, said John Darnton, the paper's culture editor.

Anthony Tommasini, a music reviewer for the paper, will succeed Holland as chief critic.

Vincent Canby, 76, who wrote film and theater reviews for The Times for more than 35 years, died Oct. 15.

After working in PR for a year, Canby joined The Motion Picture Herald in 1951 as a reporter. In 1959, he left to join Variety, where he stayed until 1965, when he was hired by the Times to cover motion pictures, and feature stories about entertainers.

PEOPLE __________________________________

Brian Boye, who has been fashion director at DNR, Fairchild's three-times-a-week newsmagazine covering men's fashion and the retail industry, has joined Men's Health, Rodale's 1.6 million-circulation monthly, to oversee style and fashion coverage for new editor David Zinczenko.

The New York Daily News has made the following editorial promotions: Bob Sapio, who oversees the Sunday and Monday paper, was named senior managing editor, the third highest executive at the paper. Joe Calderone was promoted to investigations editor, and John Marzulli was named police bureau chief. Karen Hunter returns to the paper to write a weekly news column, and Zev Chafets joins the paper to write a city-based, biweekly column in the main news section and for the op-ed page.

Wendy Perrin, 35, the consumer news editor of Traveler magazine, and Timothy Baker, 47, a free-lance photographer, were married Oct. 14 at the Perrin's family home in Tucker, Ga.

Betsey Kittenplan, 28, a reporter for People magazine, and Edward Pick, 31, a VP in the equity capital markets group at Morgan Stanley Dean Witter in New York, were wed Oct. 14.

Sean Neary, 28, the features editor at, a political news website in Washington, D.C., recently married Kathleen Seiler, 26, the communications associate at the Council of Chief State School Officers.

Luisa Kroll, an associate editor at Forbes magazine, New York, was wed to Andrew Pelosi, the executive dir. of New Yorkers Against Gun Violence.

Susan Glasser, 31, and Peter Baker, 33, Washington Post reporters who are scheduled to become the paper's Moscow bureau chiefs early next year, were wed Sept. 9.

Patrick Harverson, a sports business writer at The Financial Times, London, will join the Manchester United in December as the pro soccer team's communications director. He replaces Alison Ryan, who was dismissed after it was discovered that she had been banned from practising law.

(Media news continued on next page)

Internet Edition, October 25, 2000, Page 4


The Washington Post has expanded its coverage of technology-both in print and online- to reflect the growing importance of technology companies in the Washington, D.C., area.

The "Business" section has unveiled "Washtech" -a full page of news every weekday about the local technology community reported by an expanded team of writers and editors.

That's in addition to the paper's "Tech Thursday" and "Fast Forward" sections.

Also making its debut is, a new website created in partnership with two other Washington Post and Post Newsweek Tech Media Group. will provide continuous breaking news and interactive features designed to create a community online for everyone who cares about the region's 400,000 technology workers.

The site will publish stories written throughout the day by the paper's reporters and by the staff of PNTMG's specialty publications: Washington Techway, Washington Technology, Government Computer News and Newsbytes, a technology wire service.

Washington Business, a 20-year-old weekly tabloid, which was inserted in the Monday edition, has been discontinued and switched to a regular broadsheet section.

Terence O'Hara, who is editor of Washington Business, said the separate publication for local business news had been successful with readers and local advertisers, but "in recent years, and especially in the last two years, things have changed."

"Breaking business news over the weekend was almost unheard of 20 years ago; today it's normal," said O'Hara, who noted local business stories often take up significant space in the daily business section.

O'Hara said the Post has more than a dozen reporters covering local business exclusively.

He said these changes argued for a different approach to local business features and led the editors to change the format of Washington Business.


A new free weekly newspaper, called The Chicago Journal, made its debut Oct. 19 in three downtown Chicago areas, known as South Loop, West Loop and Near West Side, which have been revitalized.

The 12 to 16-page weekly paper, which is printed on peach-colored newsprint, is patterned after The New York Observer, which targets upper income apartment house residents with gossipy and opinionated articles.

The Journal has an initial distribution of 15,000 copies.
The publisher, Chicago Parent magazine, is based in Oak Park, Ill.

Brett McNeil is managing editor of the Journal at 708/524-8300.


Longtime syndicated gossip columnist, Liz Smith, said today's publicists are more of a hindrance than a good news source.

Speaking at's three-hour "Gossip Summit" that was held Oct. 17 in New York, the 76-year-old columnist said she misses the old days when Walter Winchell was writing his column, and there were "hundreds of press agents" who fed a steady diet of information to columnists.

Nowadays, publicists spend their time trying to get clients in Vanity Fair and keeping them out of the gossip columns, said Smith, whose column appears in The New York Post.

When she does get something from a publicist, the information is "pretty poor, and so tame," said Smith. She also complained about publicists who give her a hard time when she calls them to check out a scoop.

They either lie that the story is not true, or plead with me not to print it, said Smith.

MEDIA BRIEFS __________________________, the year-old online talk network, has launched a third channel, devoted to health, fitness and adventure. Leading health and fitness professionals will host the various two-hour segments.

eYada's other two channels cover entertainment and sports. With a fresh infusion of $25 million from an investment group led by Chase Capital Partners, eYada will be adding a Women's channel to its network.

Liz Neporent, author of Fitness for Dummies and Fitness Walking for Dummies is host of "Lizzy Fit!"; Dr. Robert Epstein, editor of Psychology Today magazine, hosts a show dealing with psychology topics, and Ellie Krieger, a registered dietician, who also is host of the syndicated TV program "Living Well," has a segment dealing with nutrition.

Rounding out the channel is "Buff and The Adventurers," which is devoted to adventure lifestyles. Jimmy Buff and adventurers Stefani Jackenthal and Carey Bond are the hosts.

Bernadette Ritzel, who is producer for the HF&A channel, can be reached at 212/247-4868; fax: 459-0239; [email protected].

Hachette Filipacchi Magazines will launch Elle Canada in English next March. The magazine will have 80% Canadian editorial content and a circulation goal of 130,000 paid subscribers, which is about 100,000 more than Canadian sales of the U.S. edition. Elle Quebec, which was started 11 years ago, will continue to publish in French.

O, the Oprah Magazine will boost its rate base to 1.3 million, up from 900,000, effective with the January edition.

Internet Edition, October 25, 2000, Page 7

KILLEEN DEFEATS STEVENS (cont'd from pg. 1)

COO Ray Gaulke is being shifted to the Foundation of PRSA where he will work on fund raising and other activities while still being available to PRSA itself. A new COO is to be hired by mid-year.

In other actions, the Assembly approved a $15 dues increase to $215 (part of a three-stage jump to $225 by 2002) and approved three-year terms instead of two years for national board members.

Jeff Julin lost his bid to replace either Carole Gorney or Michael Jackson as an "open" director.

Killeen, a write-in candidate from Los Angeles who was nominated by 40 delegates after New Yorker Stevens won the nod of the nominating committee, took 62% of the votes cast electronically by up to 244 registered delegates.

It was not revealed whether all 244 delegates took part in the voting.

Speculation was that Killeen won because of her strong APR stance, the fact that she is from the West Coast ("balancing" 2001 chair Kathy Lewton who is from New York), and that women delegates may have favored her. The Assembly is 44% female.

The Assembly was not likely to allow two New Yorkers in a row to head PRSA, said some delegates.

The Assembly took control of itself at the outset, voting to suspend the "focus groups" that would have split it up as in years past for an hour and a half.

New York chapter member Michael McDermott, who made the motion, said there was too much important business to discuss. The motion carried easily in a voice vote.

Killeen, the current treasurer of the Society, would serve as chair in 2002, succeeding Lewton.

Killeen stressed her long service to PRSA at the chapter, district and national levels while Stevens emphasized that he has operated a sizable PR firm and has also held many leadership positions in PRSA.

Stevens may have hurt his chances by announcing in the week before the election that he would allow non-accredited chapter presidents to serve in the Assembly.

Stevens Would Have Let Non-APRs Vote

An Assembly member asked just before the vote was taken whether or not this was Stevens' position.
He said that it was but that he was not in favor of decoupling accreditation from office-holding except in this instance.

"I'm for APR in everything we do," said Stevens. He said he proposed that idea as a "trial balloon" and that he would encourage the chapter presidents to become APR.

Killeen said her status as a sole practitioner would allow her to spend many hours on PRSA business. "I am willing to work hard--be on the phone at 2 a.m. in the morning," she said.

Stevens said he polled 20 chapter presidents on their relationship with national and found that 15 of them had not heard from a national board member for an average of one-and-a-half years.

"There is a vast disconnect between chapters and national," said Stevens, vowing that narrowing that gap would be his top priority. "No chapter president will ever again feel short-changed in services," he added.

Killeen, mentioning her many PRSA activities, said she feels she has "made a difference" and that a "wonderful opportunity lies in front of us."

Who Knew What, When?

A recurring question during the day-long meeting was when did the officers know about the financial troubles of the Society.

It was revealed that the normal renewal rate of about 85% had sunk to 72% during the first half, causing revenues to be much lower than anticipated. At the same time, costs were greater than expected.

Mary Lynn Cusick, nominating committee chair, insisted her 20-person committee knew about the financial troubles of the Society in late July when the committee met although it did not have the full story.

Lewton said the board did not get the full details until Aug. 2.

Jack Felton, who headed a task force studying the nominating process, blasted board members for openly supporting Killeen, saying the bylaws of PRSA specifically say that the board is not to pick its own members and that that is the duty of the nominating committee and the Assembly.

Supporters of Killeen and Stevens praised them for their service this year but several delegates wondered why Killeen, the treasurer, and Stevens, a member of the finance committee, were not better informed.

The new iMIS computer system was blamed for part of the renewal problem. Gaulke and chair Steve Pisinski said there were problems in the transfer of data from the old to the new system and that the transfer may have to be made again. The cost will be borne by the installer, said Gaulke.

One delegate had said that chapters were not receiving information on what members had not renewed.

Only One Blue Book in 2001

In reply to a question, Gaulke said that there will only be one Blue Book of members in 2001 and that the plan is to abandon billing on the anniversary of a person joining and go back to billing the entire membership for the calendar year starting in January, which was the system used until about eight years ago. IABC has long used anniversary billing.

Invoices would be sent out towards the end of the year and by February PRSA would know what the renewals were and how much money it had to spend, said Gaulke.

The Blue Book would then be published each February or March, he said.

This means the membership will have lost one edition of the directory. Lewton, asked about the decision not to publish, said the board felt that rather than cut activities that would only impact a portion of the membership, it was fairer to cut something that would impact all members equally.

PRSA expects to have a $3,000 profit this year

Internet Edition, October 25, 2000, Page 8

KILLEEN DEFEATS STEVENS (cont'd from pg. 7)
after losing $426,288 last year. Helping the Society are profits expected from the current conference--which is benefiting from attendance by members of the International PR Assn. and other international PR people--and $200,000 in contributions raised by the Chicago chapter, a record for contributions from the local conference city chapter.

One delegate proposed that The Strategist be dropped as too expensive. Another delegate rose to defend the quarterly. Another delegate said the PRSA website needs not just a webmaster but someone who will put interesting content on it. "I'm on the Internet five hours a day but never go to the PRSA website," she said.

Losing Ground

Former board member Frank Stansberry was sharply critical of the management of PRSA during the past year. He said he had heard many words of praise during the session for PRSA's leaders in spite of all the problems the Society has experienced in the past year.

"I came here with a heavy heart," he said. "I have been living in dread of this moment because it is not a happy time for PRSA...we've had praise for you (Pisinski) and Ray and Joann and for the finance committee and the board and everybody but Joe Cussick and that's probably fine (laughter). We've either identified the problem or identified the scapegoat, we don't know which...we still don't have a chief of staff, we still don't have a strategist, we still don't have a webmaster or a strategy, we still don't have a Blue Book, we still don't have an iMIS, we don't have any of the things we were supposed to have by this time this year."

"We're losing ground," he continued. He said the 2001-2004 plan contains 71 operating goals for this year. "I don't know what we've gotten for the $426,000 we've taken from reserves...we may still make $3,000 this year partly because of this great conference."

New Plan Faulted

But Stansberry said the five-year plans lack specific costs and that PRSA can't afford to "go into the hole" again for $426,000 on the new plan. Using the nine-month figures provided by PRSA, he noted the Society is over the 1999 figures on salaries to the tune of $131,000; by professional fees, $157,000, and travel, $125,000.

"That adds up to $425,000 which is pretty close to the $426,000 we are absent this year vs. last year. Maybe we should take a really close look at salaries, fees and travel and please let's put some numbers on what this is going to cost us so we don't find ourselves up here again talking about a half million dollar shortfall in revenues."

Gaulke Switch a Shocker

Delegates were shocked by the shift of Gaulke to the PRSA and Kids in a Drug Free Society Foundations. The move was not in the prepared remarks by Pisinski that were given to the press.

"Ray will be taking on new duties with the PRSA Foundation and the K.I.D.S. Foundation for the remaining term of his contract," said Pisinski. [The contract extends to Dec. 31, 2004.]

Gaulke will continue as COO over the next several months while helping in the search for a new COO, it was later explained. One PRSA source said the expectation is that the title of president, which Gaulke holds, will revert back to the highest elected officer of PRSA.

Pisinski said Gaulke has been with the Society nearly eight years and has been "a great innovator, a great marketer, and a great motivator of the staff. He's wanted to do more development and fundraising work with the K.I.D.S. Foundation and the PRSA Foundation. The PRSA Foundation especially needs more grant money."

Not Leaving

Gaulke, added Pisinski, "is not going away from PRSA. Ray will continue to do fundraising but at a high, accelerated level and will also continue handling special projects for PRSA for students as well as senior practitioners." Pisinski made the announcement early in his opening address while mentioning that the jobs of chief administrative officer and webmaster will be filled next year.

More than $2 million was put into the PRSA Foundation this year by the Robert Wood Johnson Foundation for K.I.D.S. but K.I.D.S. now has its own corporate setup, Pisinski has said, and the Johnson funds will not be run through the Foundation again.

Gaulke, commenting on the move, said he especially wants to work on bringing more members of the PR Student Society of America into PRSA. Only about 6% of the PRSSA members join PRSA, partly because PRSA does not have their home addresses.

Gaulke was given a standing ovation for his contributions to PRSA. Whether any adjustments have been made in his pay is not known. Society officers had not answered this question by press time. A formula is in the works for his salary to be paid 1/2 by PRSA and 1/4 each by K.I.D.S. and the Foundation starting the first quarter of 2001.

PRSA leaders have expressed dissatisfaction with some of the h.q. operations, including the many problems with iMIS and the alleged failure of h.q. to tell leaders and members about the low renewal rate and other financial problems this spring. CFO Joe Cussick left suddenly in June in the midst of an incomplete audit. Killeen promised the Assembly that there will be monthly financial reports.


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