Arizona Daily Star from Tucson, Arizona • Page 29

BEST AVAILABLE COPY Editor: Tiffany Kjos Telephone 520-573-4224 Fax 573-4144 E-mail businessazstarnet.com Wednesday May 11, 2005 SECTION ARIZONA DAILY STAR SERVING TUCSON SINCE 1077 MARKETS May 10, 2005 United cleared for default Pension tension The Pension Benefit Guaranty trie government agency that insures pensions, reported a record deficit of $23.3 billion in 2004. $10 billion DOW 30 Airline seeking a way out of pension bind 1 notes and convertible stock in a reorganized UAL United's holding company. Underfunded by $9.8 billion United's pensions are underfunded by an estimated $9.8 billion, of which the PBGC would guarantee only about $5 billioa The previous largest U.S. pension default was Bethlehem Steel's $3.6 billion in NASDAQ RUSSELL 2000 the way for the largest corporate-pension default in American history. The ruling, which carries broad implications for U.S.

airlines and their workers, shifts responsibility for Unit-ed's four defined-benefit plans to the government's pension agency. That will save cash-strapped United an estimated $645 million a year, part of the $2 billion in annual savings it says it needs to line up enough financing to emerge from Chapter 11 bankruptcy as soon as this fall. But the cost will be painful to its employees, who stand to lose thousands of dollars annually off their pensions when they are assumed by the Pension Benefit Guaranty Corp. The PBGC, the government's pension insurer, initially opposed United's plan. But it agreed to drop that resistance last month in exchange for up to $1.5 billion in -10 Net position of the PBGC program -15 News Notes -20 $23.3 billion deficit By Dave Carpenter THE ASSOCIATED PRESS CHICAGO A federal bankruptcy judge approved United Airlines' plan to terminate its employees' pension plans on Tuesday, clearing -25 96 '96 37 '96 99 TX TJ1 TJ2 Tj3 Tj4 SEE UNITED DS SOURCE PBGC AP Opinion by Richard Ducoto "diligent sucsossM rsai'lr positive lEFfi proficient u' TUCSON I The board of directors of UnlSource Energy parent company of Tucson Electric Power declared a quarterly dividend of 19 cents per share of common stock.

The dividend will be paid on June 10 to shareholders of record as of May 18, the company said. I University of Arizona Foundation President and CEO Richard F. Imwalle will retire at year's end after 26 years with the foundation, including 14 as its chief executive. Imwalle, 63, became the foundation's first professional development officer in 1978 and was named president and CEO in 1991, when the foundation formally separated from the university and assumed contrac-, tual responsibility for UA fund-raising and development Foundation assets have grown from $5.2 million in 1978 to more than $330 million. The foundation manages Campaign Arizona, the first $1 billion fund-raising effort in the state.

The campaign, which ends June 30, reached its monetary goal in November 2003. able QfUXtfiV TOOrant accurate 35 Mdtown delight is in store for wine buffs iving lore Keywords from the nominations describing Emily Hummer I irst off, I'm no wine expert When I first heard of shiraz, I thought it might On StarNet: Find ongoing coverage of the Downtown Rio Nuevo project at azstamet.comsnrlonuevo if 1. Lindsay A. Miller Arizona Daily Star Emily Hummer shows off her smile, in the words of Dot Kret, president and CEO of DKA, where Hummer trained for employment. On Tuesday, Hummer and her co-workers celebrated her winning the national Outstanding Achievement Award from the Association of Rehabilitation Programs in Computer Technology.

be a new Korean sports car. Therefore, I looked over this new shop in the Plaza at Williams Centre strictly as a novice. I was drawn by the sign on the corner of the building at the west-em edge of the retail strip: "58 Degrees Holding Co." Let's see, 58 degrees is too warm for a meat locker but too cool for a clothing boutique. As it turns out, it's all about wine, and 58 degrees, I'm told, is an ideal temperature for long-term wine storage. Coming in the front door at 5340 E.

Broadway, you encounter a splendid wine shop with hundreds of bottles on display in floor and wall racks. The whole concept of the business is spelled out in large lettering on the wall "shop sip store." You can walk in and shop for wine, just as you can in many places around town. You can also try out various selected wines at the wine bar in the next room. For serious wine lovers, there is storage available by the month or by the year a large vault kept at a constant 58 degrees with locked cabinets available for rent. Memberships beginning at $40 a month include home pickup and delivery service of a customer's own wine.

Some people apparently demand controlled environments for storing fine wine. All this time I thought that's what Circle K's were for. Which reminds me, by the way, that this wine emporium also has an entire wall devoted to a huge selection of chilled beers, including individual bottles of such esoteric favorites as Great White and Allagash. A small kitchen prepares sandwiches, desserts, salads and other treats, including a selection of exotic cheeses. The shop has been open only a few weeks.

A "grand opening" banner went up Tuesday and today is the first weekly wine-tasting event Tucson native Ryan Schoff conceived of the idea and this is the first shop to open under the 58 Degrees banner. Another one is in development in Sacramento, under the direction of Ian Smith. NATIONAL I Raytheon Co. and the North American unit of Europe's largest defense contractor, EADS, said Tuesday they would team up to compete for the U.S. Army's $1 billion cargo-aircraft program.

Waltham, Raytheon would be the prime contractor, handling systems integration and logistics support, while EADS would provide the airframe based on either its C-295 or CN-235 aircraft, depending on final Army requirements. An Army spokesman said details of the competition were still being finalized. I Texas Instruments the world's largest maker of semiconductors that run mobile phones, outpaced Qualcomm Inc. in sales of chips that power the newest handsets, according to researcher Forward Concepts which released the first numbers on the market Texas Instruments processors run 31 percent of the 17 million phones sold in 2004 that use a technology called WCDMA to surf the Web, play videos and download data, said Tempe-based Forward Concepts. Qualcomm had 28 percent.

I Delta Air Lines said continuing losses are forcing it to renegotiate the conditions of financing deals that helped it avert a bankruptcy filing last fall, adding that it may have to resort to a filing if the talks don't succeed. The airline disclosed Tuesday in a filing with the Securities and Exchange Commission that it is negotiating with General Electric and American Express to change the terms of deals struck last year. In its last such quarterly filing, Delta said it expected to meet terms of the GE and Arnex deals, although only by a small margin. May Department Stores which has agreed to be bought by Federated Department Stores Inc. for $11 billion, on Tuesday reported a 46 percent drop in first-quarter earnings as it struggled with weak sales of its adult apparel and seasonal clearance markdowns.

I National briefs compiled from wire reports. I Send notices for Tucson Industry News Notes to Business, Arizona Daily Star, P.O. Box 26807, Tucson, AZ 85726; by fax to 573-4144; or by e-mail to businessazstarnet.com. thesizer perched on her desk. "We're all very moved, Emily," said Joe Bribiesca, Hummer's job coach at DKA.

"We all love you. You've done an excellent job here. We're all proud of you." Hummer's boss, Blane Kerames, said she has had a positive impact on his business. Can she answer the phone? No, but she can handle paperwork, bookkeeping, computer work and the guys can answer the phone. "She basically runs the office," Kerames said.

"She's just very helpful. We're all really glad she's here." Hummer, 27, was an athletic child who loved to be outdoors, her father, Harold Hummer, said Tuesday. SEE VOICE D5 Worker can't utter a word but earns respect of others By Jane Erikson ARIZONA DAILY STAR A terrible neuromuscular disease has destroyed Emily Hummer's ability to speak, but it's had no effect on her determination to work and excel at her job. And it's done nothing to her smile, as evidenced Tuesday when Hummer and her co-workers celebrated her winning the national Outstanding Achievement Award from the Association of Rehabilitation Programs in Computer Technology. DKA, a Tucson agency that trains people with handicaps for competitive jobs in computer technology and other fields, nominated Hummer for the recognition.

The qualities listed by her nominators included her ready smile, cheerful attitude, willingness to take risks, vibrant personality, and her inspirational effect on others. The award was announced May 4 at the association's annual meeting in Las Vegas. DKA employees, Hummer's sister and parents, and her co-workers gathered for the afternoon celebration at American Engine Installations, 2865 N. Turtle Ave. "Thanks so much.

I'm honored," Hummer typed on a small voice syn SEE DUCOTE D5 KGUN likely to be sold as Indy owner quits TV business The company has served KGUN well, said Ray Depa, the station's vice president and general manager. "It's been a great ride," he said. "Emmis has done quite a bit for our station." SEE KGUN D5 By Thomas Stauffer ARIZONA DAILY STAR Indianapolis-based Emmis Communications Corp. has announced that it will likely sell all 16 of its television stations, including KGUN-9, Tucson's ABC affiliate. Emmis, which also owns ra balance sheet" she said.

"Two, the state of television is that stations really do deserve a bigger player who can" give them the kind of resources they need, so we need to find a different home for them." Emmis acquired KGUN-9 in May 2000 in a $562.5 million dio stations, magazines, Web sites and a book publisher, is getting out of the television business for two reasons, said company spokeswoman Kate Snedeker. "One, we want to try to bring down our debt and give us more flexibility with our purchase from Davenport Iowa-based Lee Enterprises, a deal that brought seven other network-affiliated stations and seven satellite stations into Emmis' empire. Lee Enterprises is in the midst of purchasing the Arizona Daily Star's parent company, Pulitzer Inc. IHS1D3 Six very high-placed lobbyists are storming D.C. this week for a new free-trade agreement.

March M. rSE 1957: KDWI fl I May 8, 2000: Indianapolis-based Emmis Communications Corp. announces it will buy KGUN and 14 other television stations from Lee for $562.5 million. becomes the Tucson ABC I Dec 1986: Davenport Iowa-based Lee Enterprises Inc. buys the station and moves it to a studio in the Gateway Center at East Speedway and North Kolb Road.

I May H. 2005: Emmis CEO Jeffrey Smulyan announces that the company has hired an investment firm to "explore strategic alternatives" that could result in selling some or all of its 16 television stations. KGUN history June 3. 1956: At 5 p.m., "I Killed Geronimo" is the first program to air on KOWI-TV, named for the initials of its owner, D.W. Ingram, a local rancher and lumberman.

From a studio complex on North Sixth Avenue near Grant Road, the station airs classic movies from 5 toTI p.m. daily. FagaDS affiliate, and its call letters change to KGUN..