AMFM Inc. Reports Record First Quarter Results.

Business Editors

DALLAS--(BUSINESS WIRE)--May 3, 2000

- Diluted After Tax Cash Flow Rises 123.5% to $81.1 Million, or

$0.36 Per Share -

- Pro forma Radio Division Net Revenues Rise 23.0%; Cash Flow

Increases 38.8% -

AMFM Inc. (NYSE: AFM) today announced record revenues and operating cash flow for the quarter ended March 31, 2000.

For the three months ended March 31, 2000, consolidated net revenues increased 48.8% to $521.3 million from $350.3 million last year. Operating cash flow (defined as operating income excluding depreciation, amortization and non-cash and non-recurring charges) was $197.9 million for the first quarter of 2000, a 59.7% increase over $123.9 million in the corresponding period of 1999. The Company's diluted after tax cash flow (defined as operating cash flow including the Company's proportional share of after tax cash flow of Lamar Advertising Company, less net interest expense and cash taxes) for the quarter ended March 31, 2000 was $81.1 million compared to $36.3 million for the first quarter of 1999, an increase of 123.5%.

AMFM Inc. reported a first quarter 2000 net loss attributable to common stockholders of $161.9 million, or $0.75 per share, compared with a net loss attributable to common stockholders of $109.9 million, or $0.77 per share, for the 1999 first quarter. The first quarter 2000 net loss attributable to common stockholders includes: a charge of $11.1 million for merger and non-recurring costs; non-cash stock option compensation costs of $34.9 million, primarily related to the severance of certain regional and market personnel; and an extraordinary charge of $6.1 million for the net after tax cost of premiums paid in connection with the redemption of the Company's 9 3/8% Subordinated Exchange Debentures due 2004. Offsetting these items is a $22.8 million gain from the sale of AMFM's eight stations in Puerto Rico for approximately $90 million.

For the quarter ended March 31, 2000, on a pro forma basis (for the radio stations that AMFM owned or operated as of March 31, 2000), the Company's radio division reported net radio broadcasting revenues increased 23.0% and cash flow (defined as operating income excluding depreciation and amortization, corporate general and administrative charges and non-cash and non-recurring charges) increased 38.8% compared to the quarter ended March 31, 1999. For the quarter ended March 31, 2000, on a pro forma basis including all of the radio and media representation assets owned or operated as of March 31, 2000, consolidated net revenues increased 22.0% and cash flow increased 38.5% compared to the quarter ended March 31, 1999.

Commenting on the results, Kenneth J. O'Keefe, Chief Operating Officer of AMFM Radio, stated, "Our continued emphasis on operations and programming and the ongoing success in building strong local clusters has yielded consistent financial growth and the twenty-second consecutive quarter of double digit cash flow gains. With 23% pro forma top line growth, 39% cash flow growth, a 35% increase in revenue at stations in top ten markets and a 75% sales gain at The AMFM Radio Networks, AMFM's radio division again achieved top-of-the-industry performance. Another indication of AMFM's strong year-over-year first quarter performance is demonstrated by the growth in pro forma operating margins, which rose to 41% from 36% in the first quarter of 1999.

"During the quarter we booked a healthy mix of national and local advertising derived from both traditional and dot-com clients. Additionally, the first quarter after tax cash flow reflects the contribution from AMFM's 30% equity interest in Lamar Advertising Company.

"As we near the completion of the merger with Clear Channel Communications, our focus remains on enhancing shareholder value through continued ratings growth, margin improvements and building after tax cash flow. With an excellent advertising environment and our continued success managing our national, well-clustered portfolio of great stations, we are quite confident about our growth prospects for the remainder of 2000 and beyond."

AMFM Inc., the nation's largest radio broadcasting entity, consists of the AMFM Radio Group, including The AMFM Radio Networks and the Chancellor Marketing Group, Broadcast Architecture, Inc. and the AMFM New Media Group, including Katz Media and AMFM's Internet operations. Reflecting announced transactions, excluding the divestiture of approximately 65 stations in connection with the merger with Clear Channel, AMFM Radio Group consists of approximately 440 stations in close to 100 markets. The AMFM Radio Networks offers syndicated programming nationwide. Chancellor Marketing Group is a full-service sales promotion firm developing integrated marketing programs for Fortune 1000 companies. Broadcast Architecture is a wholly-owned subsidiary of AMFM and provides research, consulting and programming services domestically and internationally. AMFM's Katz Media is the only full-service media representation firm in the United States serving multiple types of electronic media. AMFM's Internet operations focus on developing AMFM's e-commerce Web sites, streaming online broadcasts of AMFM's on-air programming and other media, and promoting emerging Internet and new media concerns.

AMFM has entered into a merger agreement with Clear Channel Communications, Inc. (NYSE:CCU) pursuant to which AMFM's stockholders would receive 0.94 shares of Clear Channel common stock for each share of AMFM common stock held on the record date of the transaction. AMFM will subsequently become a wholly-owned subsidiary of Clear Channel. Although there can be no assurance, the merger with Clear Channel is expected to be consummated in the second half of 2000.

This news announcement contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Key risks are described in AMFM's reports filed with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors, including economic changes and changes in the broadcasting industry generally and, accordingly, the Company's actual performance and results may vary from those stated herein and AMFM undertakes no obligation to update the information contained herein.

                               AMFM INC.
                 Consolidated Statements Of Operations
                 (In thousands, except per share data)

                                                Three Months Ended
                                                      March 31,
                                            --------------------------
                                              2000                1999
                                              ----                ----
Net revenues                               $521,270           $350,265

Operating expenses                          308,088            208,510
Corporate general and administrative
 expenses                                    15,302             17,814
                                         ----------         ----------
Operating cash flow                         197,880            123,941
Depreciation and amortization               212,491            147,744
Non-cash compensation                        34,878                  -
Merger and non-recurring costs               11,115             28,979
                                         ----------         ----------
Operating loss                              (60,604)           (52,782)
Interest expense, net                       123,645             84,392
Gain on disposition of representation
 contracts                                  (16,217)            (3,685)
Loss (gain) on disposition of assets        (22,819)                82
                                         ----------         ----------
Loss before income taxes                   (145,213)          (133,571)
Income tax benefit                          (10,749)           (30,126)
Credit on exchange of preferred stock of
 subsidiary                                  (3,310)                 -
                                         ----------         ----------

Loss before equity in net loss of
 affiliates, minority interest
  and extraordinary item                   (131,154)          (103,445)
Equity in net loss of affiliates and
 minority interest                           24,372                  -
Extraordinary loss, net of income
 tax benefit                                  6,094                  -
                                         ----------         ----------
Net loss                                   (161,620)          (103,445)
Preferred stock dividends                       321              6,417
                                         ----------         ----------
Net loss attributable to common
 stockholders                             $(161,941)         $(109,862)
                                         ==========         ==========
Basic and diluted loss per common share      $(0.75)            $(0.77)
                                         ==========         ==========
Weighted average basic common
 shares outstanding                         215,116            142,960
                                         ==========         ==========
Weighted average diluted common
 shares outstanding                         225,226            167,860
                                         ==========         ==========

After tax cash flow(a)
 Basic                                      $80,808            $29,882
 Diluted                                    $81,129            $36,299

After tax cash flow per share:
 Basic                                        $0.38              $0.21
 Diluted                                      $0.36              $0.22

(a) After tax cash flow is defined as operating cash flow less net
    interest expense, dividends and cash taxes, and includes AMFM's
    30% share of Lamar Advertising Company's ATCF. Diluted after tax
    cash flow excludes dividends.