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CNN Live At Daybreak

Web Sites At War; Pizza Party for Super Bowl Sunday; Super Bowl Commercials

Aired February 04, 2005 - 06:28   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Good morning. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Secretary of State Condoleezza Rice is in London meeting with Britain's Prime Minister Tony Blair and Foreign Secretary Jack Straw. It's the first stop on Rice's whirlwind tour of Europe plus Israel and the Palestinian territories.

The Massachusetts jury in a sexual abuse case against defrocked priest Paul Shanley returns to deliberations this morning. A 27-year- old man testified that Shanley raped him repeatedly, but that he had repressed the memories until recently.

Johnny Lee Williams is back in Tyler, Texas, after being extradited from Arizona. Williams is being held on $1 million bond. He's accused in the abduction and killing of a Wal-Mart clerk, Megan Holder, in Tyler, Texas.

Five finalists have been named for a national memorial to those who died aboard United Flight 93. The plane crashed in Pennsylvania after being hijacked by terrorists on September 11.

(WEATHER REPORT)

COSTELLO: Harrowing accounts of children being tortured have come to light in Florida. Authorities are now looking for this couple, John and Linda Dollar. They didn't show up for a court appearance.

The Dollars are accused of torturing five of their seven children in their home. They were the children's legal guardians but not their biological parents.

Authorities got the case two weeks ago when a 16-year-old boy was taken to the hospital with a head injury. He weighed 59 pounds. He was 16 years old.

Authorities then went to the home and they saw twin 14-year-old boys who were so malnourished they weighed 36 and 38 pounds, the weight of a typical 4-year-old.

(BEGIN VIDEO CLIP) GAIL TIERNEY, CITRUS COUNTY SHERIFF'S SPOKESWOMAN: I've seen pictures of the children that have, you know, been taken in connection with this case. And, you know, I mean, they have very sweet faces, but when you look at their bodies, I mean, it looks like Auschwitz. They did tell detectives that, you know, they had had toenails pulled out. When asked, you know, how were their toenails pulled out? They said by pliers.

(END VIDEO CLIP)

COSTELLO: Here's your chance to help. Authorities say John and Linda Dollar may be traveling in a 1996 black and gold Provost Marathon motor home, Florida tag U06YAC. And they may be also towing a 2000 gold-colored four-door Lexus with the Florida tax number DH41D.

In other news this morning, Army Sergeant Jamal Davis has apologized to a court-martial jury for abusing prisoners at the Abu Ghraib prison in Iraq. In tears at times, Davis admitted to using poor judgment. He added: "I'm not a perfect soldier. I'm not GI Joe."

Davis has already admitted to abusing prisoners. A plea bargain calls for 18 months in prison.

The Abu Ghraib scandal could have cost Donald Rumsfeld his job. The defense secretary told Larry King that he twice offered to resign.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: I submitted my resignation to President Bush twice during that period, and I told him that I felt that he ought to make the decision as to whether or not I stayed on. And he made that decision and said he did want me to stay on.

(END VIDEO CLIP)

COSTELLO: On another matter, Rumsfeld admits the performance of Iraqi units has been spotty. He tells "The Wall Street Journal" this morning, over time -- I'm quoting here: "Over time," he says, "the performance of units has been mixed. Early on in particular some forces did not perform as well as hoped. But this is not without historical precedent. George Washington repeatedly expressed frustration with poorly-trained troops, many of whom fled from battles."

That's a quote from Donald Rumsfeld. It's in "The Wall Street Journal" this morning.

He's a decorated Marine Corps lieutenant general, and this morning he's fighting a war of words, his own words.

(BEGIN VIDEO CLIP)

LT. GEN. JAMES MATTIS, U.S. MARINES CORPS: Actually, it's quite fun to fight them, you know. It's a hell of a hoot. It's fun to shoot some people. I'll be right up front. Yes, I'll be brawling. (END VIDEO CLIP)

COSTELLO: He's talking about what happened in Iraq. Lieutenant General James Mattis made the statements at a forum in San Diego. The commandant of the Marine Corps says the lieutenant general "agrees he should have chosen his words more carefully." Mattis is a career infantry officer in charge of developing better ways to train and equip Marines.

The military has something new that may be catching quite a few people off guard. They are Web sites that look normal enough, but they're not what they seem.

Pentagon correspondent Barbara Starr has more for you.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice over): Interested in finding out the latest political developments in North Africa? Log on to this Web site. Looking for the latest on the Balkans? Log on to "Southeast Times."

But who owns and runs these? News organizations? The disclaimer, when you find it: "Sponsored by the U.S. Department of Defense."

The Web is now the Pentagon's latest weapon: news sites run by U.S. military troops trained in information warfare, a specialty that can include deception. The Pentagon says the sites only carry truthful news from organizations, including the Associated Press and CNN.

LARRY DI RITA, PENTAGON SPOKESMAN: Our principles are truth and transparency.

STARR: Journalists and experts see it another way.

TOM ROSENSTIEL, PROJECT FOR EXCELLENCE IN JOURNALISM: The government is deceiving people. They may technically suggest that they are not, because that disclaimer is there. But you need to be looking for that disclaimer.

STARR: A military official tells CNN these sites target only specific foreign audiences with objectives, including countering disinformation. Several military officers told CNN that using the media to build influence shouldn't be their job. It's better left to the State Department. Military personnel also are worried they may be violating President Bush's directive.

BUSH: We will not be paying, you know, commentators to advance our agenda.

STARR: Deputy Defense Secretary Paul Wolfowitz had ordered hiring only journalists and contributors who will not reflect discredit on the U.S. More than 50 writers have been hired to produce articles matching the military agenda. Initially, the Pentagon told CNN there was no problem. Now, spokesman Di Rita has asked the inspector general for an audit of all Pentagon hiring of reporters to make sure.

DI RITA: I have asked that in the department that we review with that specific issue in mind to make sure that we're staying well within the lines.

STARR: Still, the question of using the military.

ROSENSTIEL: Any time that the government has to assure you, believe me, take my word for it, I'm telling you nothing but the truth, you know, you should be worried.

STARR (on camera): These sites can be viewed not just abroad, but here in the U.S. And the U.S. military is prohibited from conducting influence operations inside the country, raising the concern amongst some here that the Web sites could be inappropriate.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: In stories across America this morning, Scott Peterson's half-sister believes he killed his wife, Laci. Now, Annie Byrd (ph) is explaining her theory in a book, "Blood Brother: 33 Reasons Why My Brother, Scott, is Guilty." The book goes on sale March 1, ten days before Scott's formal sentencing is scheduled.

Charges could be filed in a hazing death of a student at California State University in Chico. The 21-year-old's death was triggered by water intoxication. The hazing ritual for the unaffiliated fraternity included drinking large amounts of water and then exercising.

Mystery writer Kinky Friedman hopes to write a new chapter in Texas politics. Friedman announced his plans to run for governor in 2006. The Independent candidate is calling for the unconditional surrender of incumbent Governor Rick Perry. Friedman once toured as a musician with Bob Dillon. He's also written several mystery novels starring himself.

Playstation fans, Sony has a brand-new gadget for you. Find out what you'll be able to do with the latest version of the video game system. That's just ahead in our business headlines.

And the halftime entertainment for Super Bowl XXXIX is Paul McCartney. He says wardrobe malfunctions are not going to be a problem this year.

Here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: The Nikkei down nearly 29 points this morning. Britain's FTSE is up nearly 23 points. The German DAX is up, oh, just about 32 and a half points.

Your news, money, weather and sports. It's 6:40 Eastern. Here's what's all new this morning.

Pope John Paul II may be well enough Sunday to make his weekly address to the faithful. He would have to do so by audio hookup from his hospital bed. The pope has been hospitalized since Tuesday with the flu and respiratory troubles.

A Wichita, Kansas, TV station has received another postcard from someone who claims to be the BTK serial killer. The note thanks KAKE for its quick response to two previous messages.

In money news, Qwest is dialing MCI's number. Qwest is offering to buy the troubled phone company for $6.3 billion, but it's far from a done deal. Sources say MCI is also talking with Verizon.

In culture, the wine industry needs to raise a glass to the Oscar nominated film "Sideways." Pinot Noir is featured in the movie. And apparently ever since "Sideways" debuted, Pinot Noir sales have been rapidly climbing.

In sports, the Eagles wide receiver Terrell Owens says he's sore, but he is ready for Sunday's Super Bowl. Still, the Eagles head coach will not say if T.O. will play. Owens has been sidelined for about six weeks with an ankle injury.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

It's time now for a little "Business Buzz." If you miss your Sony Playstation when you're away from home, we have some good news for you. You can take it with you.

Carrie Lee joins us live from the Nasdaq Marketsite.

That sounds kind of dangerous.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Yes. They really can be a time vacuum, but a lot of fun, Carol. We're talking about the PSP, or the Playstation Portable. Sony is now going to release the PSP in the United States on March 24. So, people don't have to wait too long. They're going to have one million units ready for sale in the first week at $250 each.

And this is a clear challenge to Nintendo, which has long been the leader in portable video games. Nintendo's portable DS sells for about 150 bucks. And since the holiday launch late last year, they have sold nearly three million units. So, Sony coming into the space here.

The Playstation Portable is going to have quite a few features. It can play music and movies, display photos. It also includes wireless connectivity. And the first million buyers are going to receive a copy of the movie "Spider-Man 2" in a format designed for the PSP. So that's something for people to look forward to.

Meanwhile, futures are pointing to a little bit of a higher open. The January jobs report out in about one hour and 45 minutes. It will be the big focus.

Also, Time Warner, Carol, our parent company, out with profits this morning, a nice jump over last year. They're picking up their high-speed Internet cable customer base, and they earned $1.13 billion, or 24 cents a share. Take out some charges, and they still did better than Wall Street has been expecting.

That's the latest. Back to you.

COSTELLO: Thank you, Carrie.

Super Bowl Sunday is their biggest day of the year. No, I don't mean football players. I'm talking about the pizza guys. We'll check in with one of them coming up on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: For millions of Americans, the Super Bowl means a super party, and that usually means a super feast. This Sunday, a whole lot of you will be ordering pizza. In fact, Domino's Pizza says it plans on selling 1.2 million pizzas on game day. That's a 42- percent increase from a typical Sunday. That kind of spike is expected for a lot of other pizza chains as well.

Dave Melton from Domino's Pizza is here to show us how those companies are getting ready to roll in the dough, and I mean that in the literal sense.

Chad, are you along with me?

CHAD MYERS, CNN METEOROLOGIST: I am. And I have a question about the new Garden Fresh Chicken Caesar Salad. How many of those get delivered, Carol?

COSTELLO: Yes, salads. Are salads popular on Super Bowl Sunday?

DAVE MELTON, DOMINO'S PIZZA: You know, some people get salads, but a lot more wings and pizzas will be going out the door.

COSTELLO: So, how do you prepare for such a day?

MELTON: It's a huge day for us. So, just like the Eagles and the Patriots, we're getting ready. You know, we're going to rely on what got us to the big game. So, training and execution and just the...

COSTELLO: Do you do special exercises for your arms when you roll out the dough and stuff like that?

MELTON: You know, we really do. We have our fastest pizza maker competition. We're practicing. We're getting pumped up.

COSTELLO: So, when during the game do most people order pizza?

MELTON: You know, there's a huge peak right before the game starts. In between the first and second quarters we get another pop. If the game is tight, it will stay busy through halftime. And, you know, really that's the big thing. If the game stays tight, we'll stay busy all the way through.

COSTELLO: So, you're hoping it's an interesting game. But most Super Bowl games are not, frankly.

MELTON: Well...

COSTELLO: They're mostly blowouts. A blowout would not be good for your business.

MELTON: Not good. But you know something? We'll still rock. So, it's going to be busy either way.

COSTELLO: I'm sure. Chad?

MYERS: They have the 5/5/5 deal, Carol. Five $5 pizzas, medium, one-topping. Is that going to be a popular thing? Or do people just buy as much as they can and get it all delivered?

MELTON: You know, people buy as much as they can. The 5/5/5 deal has been huge for us. So, you know, both ways, we're going to be just pouring pizzas out.

COSTELLO: I cannot believe Chad knows about all of those special deals that you have there.

MYERS: Carol, remember the "avoid the noid" thing?

COSTELLO: I don't. I'm sorry. I just don't.

MYERS: They put that little thing in the middle of the pizza.

MELTON: I love his memory. That was years ago.

MYERS: Yes.

COSTELLO: That's amazing.

MYERS: Before the noid thing came out, the cheese was always stuck to the top of the box.

COSTELLO: Oh.

MYERS: Domino's came out with that thing. You put it in the middle, "avoid the noid." And then it was a little plastic little table, and your cheese didn't get stuck to the top.

COSTELLO: Man, you're loving Chad, because he's selling Domino's for you this morning, baby.

MELTON: Oh, yes. COSTELLO: Hey, you know, I was wondering what kind of pizza is the most popular for people to order?

MELTON: You know, two-thirds of our pizzas go out the door with pepperoni on it. We're going to put on, like, 50 million slices of pepperoni on Sunday. It's huge. Our walk-ins are just bulging right now getting ready for this.

COSTELLO: OK. So, give us a few tips. If I want to order a pizza and I want it there, like, in a half-hour, I want to, like, beat the crowd, give me some tips.

MELTON: Call early. You know, figure on ordering your pizza a little bit outside of when the huge rush will be. You'll have a better chance of getting it when you want it. But, you know, this is one day that we almost need to take reservations. But it's going to be a huge day, and we're ready, so...

COSTELLO: So, you should be polite, too, to the person on the other end of the phone. I mean, do you have trouble with drunken, rude people calling in during the Super Bowl?

MELTON: Oh, not just on Super Bowl. You know, people -- oh, it's great. We love our customers. They're coming in all of the time.

COSTELLO: Oh, Dave, tell the truth. You have some customers you'd rather do without. Come on.

MELTON: No way. They're all great.

COSTELLO: Oh, yes, Dave, right. Dave Melton from Domino's Pizza joining us this morning. Thank you. We appreciate it.

MELTON: Thank you.

COSTELLO: So, while people are scarfing down pizza and beer, will they remember to look up long enough to watch the halftime show? Sir Paul McCartney is the scheduled performer. He says his act may be more than expected, or will it be less?

(BEGIN VIDEO CLIP)

PAUL MCCARTNEY, SINGER: I think, you know, they have an idea I might not have a wardrobe malfunction.

UNIDENTIFIED MALE: Paul...

MCCARTNEY: And I can safely tell you I won't.

UNIDENTIFIED MALE: Paul, people...

MCCARTNEY: Because we're going to play naked!

(END VIDEO CLIP) COSTELLO: Oh, that would be quite a sight, wouldn't it? In the meantime, a column in "The New York Times" asked for some assurances that McCartney will not pull a Janet.

"The New York Times" columns reads -- "The New York Times" column reads: "We were wondering if you could maybe wear something extra over your outfit, Paul? Or maybe under it, like an extra pair of underpants over your usual underpants? Or maybe a sweater and a second pair of pants over your original pair of pants? Nothing too noticeable -- just a little insurance. I'm sure you understand."

A plea to Paul McCartney, but I really don't think it's going to be a racy show, do you?

Every year it seems that the Super Bowl commercials get more attention than the game itself. And this year it will not be any different. But now, it's more about what won't be seen.

CNN's Julie Vallese explains.

JULIE VALLESE, CNN CORRESPONDENT (voice over): Last year's Super Bowl left a lasting impression, so much so the Federal Communications Commission ruled the halftime show indecent and fined CBS. One part of the event that didn't leave a lasting impression? The commercials.

But people are still watching; 145 million are expected to tune in to watch Super Bowl XXXIX. A retail industry group says a quarter of them just to watch the ads, ads that cost companies as much as $2.4 million.

BOB GARFIELD, ADVERTISING AGE: It's going to be very tame, probably tamer than is necessary. Probably, I would say, preposterously tame.

VALLESE: Sunday's lineup includes some veterans. Visa's back.

SUZANNE LYONS, VISA: Our format this year in our advertising is actually very all-American.

VALLESE: Budweiser, the king of beers, buying in at least 10 times with the reliable Clydesdale. And Cedric. Newcomer Web domain sales company godaddy.com has bought two slots.

BOB PARSONS, CHAIRMAN, CEO, GODADDY.COM: We found that there were a lot of people that didn't know we were. And we believe that if they know who we are, they'll do business with us.

VALLESE: So, the Super Bowl is the kickoff to an aggressive ad campaign for the dot-comer, and even if you don't remember what they do, chances are you'll remember the commercial.

(on camera): Now, that's a pretty tough act to follow, but there will be other acts. FedEx will leave you smiling. Pepsi's are promising. And Cealis is back with a four-hour warning. One commercial you won't see? One from Lincoln Mercury. It's been pulled after protests from victims' rights groups saying it hits a little too close to home of the church sex scandals.

Julie Vallese, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: An amazing survival story is coming up on "AMERICAN MORNING." Bill Hemmer is here to tell us a little bit more about it.

Good morning -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

Remember this in Southern California just about 10 days ago? One man's amazing survival story. John Phipps (ph) is his name, Carol. He survived last month's deadly train collision in L.A., trapped under debris, thought he would not make it. He wrote a message to his wife and children in his own blood, telling them he loved them.

This morning, Phipps (ph) and his wife will join us, happy for another day, certainly. We'll have that for you as part of our show this morning.

COSTELLO: Yes. It is a story with a happy ending.

HEMMER: Oh, yes.

COSTELLO: Thank you, Bill. We'll see you in about 10 minutes.

You are watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

COSTELLO: It's time to take a quick look at the morning headlines, Chad, a lot of it about President Bush and his Social Security plan. You know, he's on a tour of the country to push his Social Security plan.

A lot of interesting editorials, too. For example, in "The Wall Street Journal," Donald Rumsfeld has a very interesting editorial about what's happening in Iraq right now. So, you'll be sure to want to read that.

MYERS: Yes.

COSTELLO: Or go online. There's also an interesting article in "The Wall Street Journal" about fashion and the "it" colors of this year.

MYERS: Oops.

COSTELLO: Glazed ginger is an "it" color.

MYERS: What color is that?

COSTELLO: It's sort of like a beigy (ph) caramel color.

MYERS: Oh, OK.

COSTELLO: And pantone (ph)...

MYERS: It's kind of like they just renamed taupe, huh?

COSTELLO: Exactly. And pantone (ph), at least I think that's how you pronounce it. It's sort of a Moroccan blue color. So, bright colors again are in this year.

MYERS: Sort of a dark seafoam.

COSTELLO: I always wondered about what they named color things, especially in lip glosses.

MYERS: Yes.

COSTELLO: I have a lip gloss. It's named nymphet.

MYERS: I'm sorry.

COSTELLO: Come back. It's not that bad.

MYERS: Thanks for sharing that with us.

COSTELLO: It's pink. It's the color pink. But what does nymphet have to do with pink? Don't answer that question.

MYERS: OK, thank you very much.

COSTELLO: Let's talk about the Super Bowl.

MYERS: I got nothing!

COSTELLO: What's the weather going to be like in Jacksonville on Sunday night?

MYERS: You know, better than yesterday. It kind of rained across Jacksonville yesterday. We'll call it mostly cloudy for kickoff and 59, northeast winds 10 to 15. Really nothing there in the forecast that's going to cause any kind of problems or any kind of a havoc with the football game at all. Not as warm as maybe they would like, but, you know, at least it's not somewhere way out in the Northeast where it's really going to be cold for the weekend -- Carol.

COSTELLO: So, are you willing to place a wager?

MYERS: No.

COSTELLO: Oh, come on!

MYERS: You know. No, because I was on CNN Radio last -- two weeks ago, and they said, "Who do you think is going to win?" And I said, 'The Falcons and the Steelers.' So, I was 0 for 2 on those two games. I can't even get 50/50.

But did you know that the 24-hour Rolex of Daytona race is this weekend as well, Carol, in Florida?

COSTELLO: I know you would bring up NASCAR somehow, some way.

MYERS: Yes.

COSTELLO: And you have.

MYERS: We are getting racing started this weekend at Daytona 24 hours on TV. Hey, it's going to be good stuff.

COSTELLO: Yes. And, you know, I think we're going to have a very special guest next week on DAYBREAK, a guest you will love.

MYERS: I hear that. Dale Earnhardt, Jr. is going to join us, huh?

COSTELLO: Yes.

MYERS: And talk about the new season, about the new rules. The spoilers are smaller. The tires are different. Everybody seems to be very happy about those changes, though.

COSTELLO: I know I am, because I thought about that when I was going to interview him I though, oh, my gosh, I've go to talk about the spoilers.

MYERS: Got to talk about that one-inch lower spoiler. Have a great weekend, Carol.

COSTELLO: You too, Chad. Thank you. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

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Aired February 4, 2005 - 06:28   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

Secretary of State Condoleezza Rice is in London meeting with Britain's Prime Minister Tony Blair and Foreign Secretary Jack Straw. It's the first stop on Rice's whirlwind tour of Europe plus Israel and the Palestinian territories.

The Massachusetts jury in a sexual abuse case against defrocked priest Paul Shanley returns to deliberations this morning. A 27-year- old man testified that Shanley raped him repeatedly, but that he had repressed the memories until recently.

Johnny Lee Williams is back in Tyler, Texas, after being extradited from Arizona. Williams is being held on $1 million bond. He's accused in the abduction and killing of a Wal-Mart clerk, Megan Holder, in Tyler, Texas.

Five finalists have been named for a national memorial to those who died aboard United Flight 93. The plane crashed in Pennsylvania after being hijacked by terrorists on September 11.

(WEATHER REPORT)

COSTELLO: Harrowing accounts of children being tortured have come to light in Florida. Authorities are now looking for this couple, John and Linda Dollar. They didn't show up for a court appearance.

The Dollars are accused of torturing five of their seven children in their home. They were the children's legal guardians but not their biological parents.

Authorities got the case two weeks ago when a 16-year-old boy was taken to the hospital with a head injury. He weighed 59 pounds. He was 16 years old.

Authorities then went to the home and they saw twin 14-year-old boys who were so malnourished they weighed 36 and 38 pounds, the weight of a typical 4-year-old.

(BEGIN VIDEO CLIP) GAIL TIERNEY, CITRUS COUNTY SHERIFF'S SPOKESWOMAN: I've seen pictures of the children that have, you know, been taken in connection with this case. And, you know, I mean, they have very sweet faces, but when you look at their bodies, I mean, it looks like Auschwitz. They did tell detectives that, you know, they had had toenails pulled out. When asked, you know, how were their toenails pulled out? They said by pliers.

(END VIDEO CLIP)

COSTELLO: Here's your chance to help. Authorities say John and Linda Dollar may be traveling in a 1996 black and gold Provost Marathon motor home, Florida tag U06YAC. And they may be also towing a 2000 gold-colored four-door Lexus with the Florida tax number DH41D.

In other news this morning, Army Sergeant Jamal Davis has apologized to a court-martial jury for abusing prisoners at the Abu Ghraib prison in Iraq. In tears at times, Davis admitted to using poor judgment. He added: "I'm not a perfect soldier. I'm not GI Joe."

Davis has already admitted to abusing prisoners. A plea bargain calls for 18 months in prison.

The Abu Ghraib scandal could have cost Donald Rumsfeld his job. The defense secretary told Larry King that he twice offered to resign.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: I submitted my resignation to President Bush twice during that period, and I told him that I felt that he ought to make the decision as to whether or not I stayed on. And he made that decision and said he did want me to stay on.

(END VIDEO CLIP)

COSTELLO: On another matter, Rumsfeld admits the performance of Iraqi units has been spotty. He tells "The Wall Street Journal" this morning, over time -- I'm quoting here: "Over time," he says, "the performance of units has been mixed. Early on in particular some forces did not perform as well as hoped. But this is not without historical precedent. George Washington repeatedly expressed frustration with poorly-trained troops, many of whom fled from battles."

That's a quote from Donald Rumsfeld. It's in "The Wall Street Journal" this morning.

He's a decorated Marine Corps lieutenant general, and this morning he's fighting a war of words, his own words.

(BEGIN VIDEO CLIP)

LT. GEN. JAMES MATTIS, U.S. MARINES CORPS: Actually, it's quite fun to fight them, you know. It's a hell of a hoot. It's fun to shoot some people. I'll be right up front. Yes, I'll be brawling. (END VIDEO CLIP)

COSTELLO: He's talking about what happened in Iraq. Lieutenant General James Mattis made the statements at a forum in San Diego. The commandant of the Marine Corps says the lieutenant general "agrees he should have chosen his words more carefully." Mattis is a career infantry officer in charge of developing better ways to train and equip Marines.

The military has something new that may be catching quite a few people off guard. They are Web sites that look normal enough, but they're not what they seem.

Pentagon correspondent Barbara Starr has more for you.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice over): Interested in finding out the latest political developments in North Africa? Log on to this Web site. Looking for the latest on the Balkans? Log on to "Southeast Times."

But who owns and runs these? News organizations? The disclaimer, when you find it: "Sponsored by the U.S. Department of Defense."

The Web is now the Pentagon's latest weapon: news sites run by U.S. military troops trained in information warfare, a specialty that can include deception. The Pentagon says the sites only carry truthful news from organizations, including the Associated Press and CNN.

LARRY DI RITA, PENTAGON SPOKESMAN: Our principles are truth and transparency.

STARR: Journalists and experts see it another way.

TOM ROSENSTIEL, PROJECT FOR EXCELLENCE IN JOURNALISM: The government is deceiving people. They may technically suggest that they are not, because that disclaimer is there. But you need to be looking for that disclaimer.

STARR: A military official tells CNN these sites target only specific foreign audiences with objectives, including countering disinformation. Several military officers told CNN that using the media to build influence shouldn't be their job. It's better left to the State Department. Military personnel also are worried they may be violating President Bush's directive.

BUSH: We will not be paying, you know, commentators to advance our agenda.

STARR: Deputy Defense Secretary Paul Wolfowitz had ordered hiring only journalists and contributors who will not reflect discredit on the U.S. More than 50 writers have been hired to produce articles matching the military agenda. Initially, the Pentagon told CNN there was no problem. Now, spokesman Di Rita has asked the inspector general for an audit of all Pentagon hiring of reporters to make sure.

DI RITA: I have asked that in the department that we review with that specific issue in mind to make sure that we're staying well within the lines.

STARR: Still, the question of using the military.

ROSENSTIEL: Any time that the government has to assure you, believe me, take my word for it, I'm telling you nothing but the truth, you know, you should be worried.

STARR (on camera): These sites can be viewed not just abroad, but here in the U.S. And the U.S. military is prohibited from conducting influence operations inside the country, raising the concern amongst some here that the Web sites could be inappropriate.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

COSTELLO: In stories across America this morning, Scott Peterson's half-sister believes he killed his wife, Laci. Now, Annie Byrd (ph) is explaining her theory in a book, "Blood Brother: 33 Reasons Why My Brother, Scott, is Guilty." The book goes on sale March 1, ten days before Scott's formal sentencing is scheduled.

Charges could be filed in a hazing death of a student at California State University in Chico. The 21-year-old's death was triggered by water intoxication. The hazing ritual for the unaffiliated fraternity included drinking large amounts of water and then exercising.

Mystery writer Kinky Friedman hopes to write a new chapter in Texas politics. Friedman announced his plans to run for governor in 2006. The Independent candidate is calling for the unconditional surrender of incumbent Governor Rick Perry. Friedman once toured as a musician with Bob Dillon. He's also written several mystery novels starring himself.

Playstation fans, Sony has a brand-new gadget for you. Find out what you'll be able to do with the latest version of the video game system. That's just ahead in our business headlines.

And the halftime entertainment for Super Bowl XXXIX is Paul McCartney. He says wardrobe malfunctions are not going to be a problem this year.

Here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: The Nikkei down nearly 29 points this morning. Britain's FTSE is up nearly 23 points. The German DAX is up, oh, just about 32 and a half points.

Your news, money, weather and sports. It's 6:40 Eastern. Here's what's all new this morning.

Pope John Paul II may be well enough Sunday to make his weekly address to the faithful. He would have to do so by audio hookup from his hospital bed. The pope has been hospitalized since Tuesday with the flu and respiratory troubles.

A Wichita, Kansas, TV station has received another postcard from someone who claims to be the BTK serial killer. The note thanks KAKE for its quick response to two previous messages.

In money news, Qwest is dialing MCI's number. Qwest is offering to buy the troubled phone company for $6.3 billion, but it's far from a done deal. Sources say MCI is also talking with Verizon.

In culture, the wine industry needs to raise a glass to the Oscar nominated film "Sideways." Pinot Noir is featured in the movie. And apparently ever since "Sideways" debuted, Pinot Noir sales have been rapidly climbing.

In sports, the Eagles wide receiver Terrell Owens says he's sore, but he is ready for Sunday's Super Bowl. Still, the Eagles head coach will not say if T.O. will play. Owens has been sidelined for about six weeks with an ankle injury.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

It's time now for a little "Business Buzz." If you miss your Sony Playstation when you're away from home, we have some good news for you. You can take it with you.

Carrie Lee joins us live from the Nasdaq Marketsite.

That sounds kind of dangerous.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Yes. They really can be a time vacuum, but a lot of fun, Carol. We're talking about the PSP, or the Playstation Portable. Sony is now going to release the PSP in the United States on March 24. So, people don't have to wait too long. They're going to have one million units ready for sale in the first week at $250 each.

And this is a clear challenge to Nintendo, which has long been the leader in portable video games. Nintendo's portable DS sells for about 150 bucks. And since the holiday launch late last year, they have sold nearly three million units. So, Sony coming into the space here.

The Playstation Portable is going to have quite a few features. It can play music and movies, display photos. It also includes wireless connectivity. And the first million buyers are going to receive a copy of the movie "Spider-Man 2" in a format designed for the PSP. So that's something for people to look forward to.

Meanwhile, futures are pointing to a little bit of a higher open. The January jobs report out in about one hour and 45 minutes. It will be the big focus.

Also, Time Warner, Carol, our parent company, out with profits this morning, a nice jump over last year. They're picking up their high-speed Internet cable customer base, and they earned $1.13 billion, or 24 cents a share. Take out some charges, and they still did better than Wall Street has been expecting.

That's the latest. Back to you.

COSTELLO: Thank you, Carrie.

Super Bowl Sunday is their biggest day of the year. No, I don't mean football players. I'm talking about the pizza guys. We'll check in with one of them coming up on DAYBREAK.

(COMMERCIAL BREAK)

COSTELLO: For millions of Americans, the Super Bowl means a super party, and that usually means a super feast. This Sunday, a whole lot of you will be ordering pizza. In fact, Domino's Pizza says it plans on selling 1.2 million pizzas on game day. That's a 42- percent increase from a typical Sunday. That kind of spike is expected for a lot of other pizza chains as well.

Dave Melton from Domino's Pizza is here to show us how those companies are getting ready to roll in the dough, and I mean that in the literal sense.

Chad, are you along with me?

CHAD MYERS, CNN METEOROLOGIST: I am. And I have a question about the new Garden Fresh Chicken Caesar Salad. How many of those get delivered, Carol?

COSTELLO: Yes, salads. Are salads popular on Super Bowl Sunday?

DAVE MELTON, DOMINO'S PIZZA: You know, some people get salads, but a lot more wings and pizzas will be going out the door.

COSTELLO: So, how do you prepare for such a day?

MELTON: It's a huge day for us. So, just like the Eagles and the Patriots, we're getting ready. You know, we're going to rely on what got us to the big game. So, training and execution and just the...

COSTELLO: Do you do special exercises for your arms when you roll out the dough and stuff like that?

MELTON: You know, we really do. We have our fastest pizza maker competition. We're practicing. We're getting pumped up.

COSTELLO: So, when during the game do most people order pizza?

MELTON: You know, there's a huge peak right before the game starts. In between the first and second quarters we get another pop. If the game is tight, it will stay busy through halftime. And, you know, really that's the big thing. If the game stays tight, we'll stay busy all the way through.

COSTELLO: So, you're hoping it's an interesting game. But most Super Bowl games are not, frankly.

MELTON: Well...

COSTELLO: They're mostly blowouts. A blowout would not be good for your business.

MELTON: Not good. But you know something? We'll still rock. So, it's going to be busy either way.

COSTELLO: I'm sure. Chad?

MYERS: They have the 5/5/5 deal, Carol. Five $5 pizzas, medium, one-topping. Is that going to be a popular thing? Or do people just buy as much as they can and get it all delivered?

MELTON: You know, people buy as much as they can. The 5/5/5 deal has been huge for us. So, you know, both ways, we're going to be just pouring pizzas out.

COSTELLO: I cannot believe Chad knows about all of those special deals that you have there.

MYERS: Carol, remember the "avoid the noid" thing?

COSTELLO: I don't. I'm sorry. I just don't.

MYERS: They put that little thing in the middle of the pizza.

MELTON: I love his memory. That was years ago.

MYERS: Yes.

COSTELLO: That's amazing.

MYERS: Before the noid thing came out, the cheese was always stuck to the top of the box.

COSTELLO: Oh.

MYERS: Domino's came out with that thing. You put it in the middle, "avoid the noid." And then it was a little plastic little table, and your cheese didn't get stuck to the top.

COSTELLO: Man, you're loving Chad, because he's selling Domino's for you this morning, baby.

MELTON: Oh, yes. COSTELLO: Hey, you know, I was wondering what kind of pizza is the most popular for people to order?

MELTON: You know, two-thirds of our pizzas go out the door with pepperoni on it. We're going to put on, like, 50 million slices of pepperoni on Sunday. It's huge. Our walk-ins are just bulging right now getting ready for this.

COSTELLO: OK. So, give us a few tips. If I want to order a pizza and I want it there, like, in a half-hour, I want to, like, beat the crowd, give me some tips.

MELTON: Call early. You know, figure on ordering your pizza a little bit outside of when the huge rush will be. You'll have a better chance of getting it when you want it. But, you know, this is one day that we almost need to take reservations. But it's going to be a huge day, and we're ready, so...

COSTELLO: So, you should be polite, too, to the person on the other end of the phone. I mean, do you have trouble with drunken, rude people calling in during the Super Bowl?

MELTON: Oh, not just on Super Bowl. You know, people -- oh, it's great. We love our customers. They're coming in all of the time.

COSTELLO: Oh, Dave, tell the truth. You have some customers you'd rather do without. Come on.

MELTON: No way. They're all great.

COSTELLO: Oh, yes, Dave, right. Dave Melton from Domino's Pizza joining us this morning. Thank you. We appreciate it.

MELTON: Thank you.

COSTELLO: So, while people are scarfing down pizza and beer, will they remember to look up long enough to watch the halftime show? Sir Paul McCartney is the scheduled performer. He says his act may be more than expected, or will it be less?

(BEGIN VIDEO CLIP)

PAUL MCCARTNEY, SINGER: I think, you know, they have an idea I might not have a wardrobe malfunction.

UNIDENTIFIED MALE: Paul...

MCCARTNEY: And I can safely tell you I won't.

UNIDENTIFIED MALE: Paul, people...

MCCARTNEY: Because we're going to play naked!

(END VIDEO CLIP) COSTELLO: Oh, that would be quite a sight, wouldn't it? In the meantime, a column in "The New York Times" asked for some assurances that McCartney will not pull a Janet.

"The New York Times" columns reads -- "The New York Times" column reads: "We were wondering if you could maybe wear something extra over your outfit, Paul? Or maybe under it, like an extra pair of underpants over your usual underpants? Or maybe a sweater and a second pair of pants over your original pair of pants? Nothing too noticeable -- just a little insurance. I'm sure you understand."

A plea to Paul McCartney, but I really don't think it's going to be a racy show, do you?

Every year it seems that the Super Bowl commercials get more attention than the game itself. And this year it will not be any different. But now, it's more about what won't be seen.

CNN's Julie Vallese explains.

JULIE VALLESE, CNN CORRESPONDENT (voice over): Last year's Super Bowl left a lasting impression, so much so the Federal Communications Commission ruled the halftime show indecent and fined CBS. One part of the event that didn't leave a lasting impression? The commercials.

But people are still watching; 145 million are expected to tune in to watch Super Bowl XXXIX. A retail industry group says a quarter of them just to watch the ads, ads that cost companies as much as $2.4 million.

BOB GARFIELD, ADVERTISING AGE: It's going to be very tame, probably tamer than is necessary. Probably, I would say, preposterously tame.

VALLESE: Sunday's lineup includes some veterans. Visa's back.

SUZANNE LYONS, VISA: Our format this year in our advertising is actually very all-American.

VALLESE: Budweiser, the king of beers, buying in at least 10 times with the reliable Clydesdale. And Cedric. Newcomer Web domain sales company godaddy.com has bought two slots.

BOB PARSONS, CHAIRMAN, CEO, GODADDY.COM: We found that there were a lot of people that didn't know we were. And we believe that if they know who we are, they'll do business with us.

VALLESE: So, the Super Bowl is the kickoff to an aggressive ad campaign for the dot-comer, and even if you don't remember what they do, chances are you'll remember the commercial.

(on camera): Now, that's a pretty tough act to follow, but there will be other acts. FedEx will leave you smiling. Pepsi's are promising. And Cealis is back with a four-hour warning. One commercial you won't see? One from Lincoln Mercury. It's been pulled after protests from victims' rights groups saying it hits a little too close to home of the church sex scandals.

Julie Vallese, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: An amazing survival story is coming up on "AMERICAN MORNING." Bill Hemmer is here to tell us a little bit more about it.

Good morning -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

Remember this in Southern California just about 10 days ago? One man's amazing survival story. John Phipps (ph) is his name, Carol. He survived last month's deadly train collision in L.A., trapped under debris, thought he would not make it. He wrote a message to his wife and children in his own blood, telling them he loved them.

This morning, Phipps (ph) and his wife will join us, happy for another day, certainly. We'll have that for you as part of our show this morning.

COSTELLO: Yes. It is a story with a happy ending.

HEMMER: Oh, yes.

COSTELLO: Thank you, Bill. We'll see you in about 10 minutes.

You are watching DAYBREAK for a Friday.

(COMMERCIAL BREAK)

COSTELLO: It's time to take a quick look at the morning headlines, Chad, a lot of it about President Bush and his Social Security plan. You know, he's on a tour of the country to push his Social Security plan.

A lot of interesting editorials, too. For example, in "The Wall Street Journal," Donald Rumsfeld has a very interesting editorial about what's happening in Iraq right now. So, you'll be sure to want to read that.

MYERS: Yes.

COSTELLO: Or go online. There's also an interesting article in "The Wall Street Journal" about fashion and the "it" colors of this year.

MYERS: Oops.

COSTELLO: Glazed ginger is an "it" color.

MYERS: What color is that?

COSTELLO: It's sort of like a beigy (ph) caramel color.

MYERS: Oh, OK.

COSTELLO: And pantone (ph)...

MYERS: It's kind of like they just renamed taupe, huh?

COSTELLO: Exactly. And pantone (ph), at least I think that's how you pronounce it. It's sort of a Moroccan blue color. So, bright colors again are in this year.

MYERS: Sort of a dark seafoam.

COSTELLO: I always wondered about what they named color things, especially in lip glosses.

MYERS: Yes.

COSTELLO: I have a lip gloss. It's named nymphet.

MYERS: I'm sorry.

COSTELLO: Come back. It's not that bad.

MYERS: Thanks for sharing that with us.

COSTELLO: It's pink. It's the color pink. But what does nymphet have to do with pink? Don't answer that question.

MYERS: OK, thank you very much.

COSTELLO: Let's talk about the Super Bowl.

MYERS: I got nothing!

COSTELLO: What's the weather going to be like in Jacksonville on Sunday night?

MYERS: You know, better than yesterday. It kind of rained across Jacksonville yesterday. We'll call it mostly cloudy for kickoff and 59, northeast winds 10 to 15. Really nothing there in the forecast that's going to cause any kind of problems or any kind of a havoc with the football game at all. Not as warm as maybe they would like, but, you know, at least it's not somewhere way out in the Northeast where it's really going to be cold for the weekend -- Carol.

COSTELLO: So, are you willing to place a wager?

MYERS: No.

COSTELLO: Oh, come on!

MYERS: You know. No, because I was on CNN Radio last -- two weeks ago, and they said, "Who do you think is going to win?" And I said, 'The Falcons and the Steelers.' So, I was 0 for 2 on those two games. I can't even get 50/50.

But did you know that the 24-hour Rolex of Daytona race is this weekend as well, Carol, in Florida?

COSTELLO: I know you would bring up NASCAR somehow, some way.

MYERS: Yes.

COSTELLO: And you have.

MYERS: We are getting racing started this weekend at Daytona 24 hours on TV. Hey, it's going to be good stuff.

COSTELLO: Yes. And, you know, I think we're going to have a very special guest next week on DAYBREAK, a guest you will love.

MYERS: I hear that. Dale Earnhardt, Jr. is going to join us, huh?

COSTELLO: Yes.

MYERS: And talk about the new season, about the new rules. The spoilers are smaller. The tires are different. Everybody seems to be very happy about those changes, though.

COSTELLO: I know I am, because I thought about that when I was going to interview him I though, oh, my gosh, I've go to talk about the spoilers.

MYERS: Got to talk about that one-inch lower spoiler. Have a great weekend, Carol.

COSTELLO: You too, Chad. Thank you. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

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