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AMFM Inc. Reports Record Fourth Quarter Results.

Business Editors

DALLAS--(BUSINESS WIRE)--Feb. 29, 2000

- Diluted After Tax Cash Flow Rises 52.2% to $155.7 Million, or

$0.69 Per Share -

- Pro forma Radio Division Net Revenues Rise 18.7%;

Cash Flow Increases 26.4%; Operating Margins Reach 48.1% -

AMFM Inc. (NYSE: AFM) today announced record revenues and operating cash flow for the fourth quarter and year ended December 31, 1999.

For the three months ended December 31, 1999, consolidated net revenues increased 60.4% to $601.0 million from $374.8 million last year. Operating cash flow (defined as operating income excluding depreciation, amortization and non-cash and non-recurring charges) was $270.1 million for the fourth quarter of 1999, a 56.1% increase over $173.1 million in the corresponding period of 1998. 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 December 31, 1999 was $155.7 million compared to $102.3 million for the fourth quarter of 1998, an increase of 52.2%.

AMFM Inc. reported a fourth quarter net loss attributable to common stockholders of $105.9 million, or $0.50 per share, compared with a net loss attributable to common stockholders of $33.0 million, or $0.23 per share, for the 1998 fourth quarter.

AMFM recorded a charge of $21.9 million during the fourth quarter for merger and non-recurring costs. The charge covers costs incurred in connection with the implementation of the Company's market strategy and non-recurring legal, merger and other costs. Additionally, the Company recorded a $15.1 million extraordinary charge in the fourth quarter of 1999 associated with its refinancing activity. The charge includes the net after tax cost of premiums, estimated transaction costs and the write-off of the unamortized balance of deferred debt issuance costs in connection with the refinancing of the Company's credit facility and the tender offers for the Company's 10 3/4% Senior Subordinated Notes and 11 3/8% Senior Subordinated Notes.

For the quarter ended December 31, 1999, on a pro forma basis (for the radio stations that AMFM owned or operated as of December 31, 1999), the Company's radio division reported net radio broadcasting revenues increased 18.7% and cash flow (defined as operating income excluding depreciation and amortization, corporate general and administrative charges and non-cash and non-recurring charges) increased 26.4% compared to the quarter ended December 31, 1998. For the quarter ended December 31, 1999, on a pro forma basis including all of the radio and media representation assets owned or operated as of December 31, 1999, consolidated net revenues increased 16.5% and cash flow increased 22.9% compared to the quarter ended December 31, 1998.

Commenting on the results, Kenneth J. O'Keefe, Chief Executive Officer of AMFM Radio, stated, "AMFM's fourth quarter financial performance underscores the radio group's ability to continue generating record results from our well-clustered national portfolio of stations and our ability to attract a high-octane mix of national and local advertising derived from both traditional and dot-com clients. The consolidated results also reflect the benefits of our refinancing transactions during the fourth quarter and our success in building revenues from ancillary business units including The AMFM Radio Networks and Chancellor Marketing Group as well as the after tax cash flow benefit from the Company's 30% equity interest in Lamar Advertising Company.

"Reflecting the successful integration of the Capstar stations, the implementation of the cluster management strategy in many major markets at the end of the third quarter, and our Company-wide focus on programming and marketing, AMFM achieved terrific fourth quarter pro forma cash flow growth. In addition to 19% pro forma top line growth and 26% pro forma cash flow growth, the radio group's pro forma margins rose to 48.1% in the fourth quarter, up from 45.2% during the same period in 1998.

"Ratings are an important indicator of future financial performance and our deep station-level management talent generated excellent Fall ratings throughout the radio group and the No.1 or No.2 rated cluster in 9 of the nation's top 10 markets. Contributing to this growth were stations which were re-programmed with Jammin' Oldies which delivered solid year-over-year ratings gains. Based on initial results, we expect that `sticks' which have recently been re-programmed with the `Alice' format, known as Rockin' Hits, will also garner good year-over-year improvements. Based on our Fall rating successes and first quarter pacings, we are on track to generate significant first quarter and full year 2000 year-over-year financial gains."

Thomas O. Hicks, Chairman and CEO of AMFM said, "During the fourth quarter we announced plans to merge with industry leader Clear Channel Communications, creating the nation's largest out-of-home media entity. We are confident in our prospects for continued growth as the combined entity will provide unprecedented opportunities to our employees and advertisers while creating significant operating and financial value through world-class programming, content and branding strengths spanning 32 countries.

"Earlier this month, we reluctantly accepted the resignation of Jimmy de Castro, who had headed up our radio and Internet operations. While we will miss Jimmy, he positioned AMFM with a very solid management infrastructure capable of creating opportunities to further build shareholder value in a thriving radio industry environment."

For the year ended December 31, 1999, consolidated net revenues increased 55.3% to $2.0 billion, compared with $1.3 billion in the year ended December 31, 1998. Operating cash flow for the year ended December 31, 1999 rose 57.0% to $871.6 million, compared with $555.1 million in the corresponding period of 1998.

For the year, AMFM Inc. reported a net loss attributable to common stockholders of $189.6 million, or $1.10 per share, compared with a net loss attributable to common shareholders of $121.3 million, or $0.88 per share for the year ended December 31, 1999.

For the year ended December 31, 1999, on a pro forma basis, net radio broadcasting revenues increased 14.9% and cash flow increased 21.5% compared to the year ended December 31, 1998. For the year ended December 31, 1999, the Company's pro forma radio broadcast cash flow margin increased to 46.2% compared to 43.7% in the corresponding period of 1998.

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, AMFM Radio Group with approximately 440 stations in 100 markets reaches a weekly listener base of 64 million people. 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 assurances, 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 Twelve Months Ended
 December 31, December 31,
 ------------------------ ----------------------
 1999 1998 1999 1998
 ---- ---- ---- ----
Net revenues $601,040 $374,760 $1,977,888 $1,273,856

Operating expenses 317,451 190,137 1,048,711 682,061
Corporate general and
 administrative expenses 13,456 11,534 57,559 36,722
 ---------- ---------- ---------- ----------
Operating cash flow 270,133 173,089 871,618 555,073
Depreciation and
 amortization 202,508 130,566 732,233 446,338
Non-cash compensation 295 - 6,443 16,000
Merger and
 non-recurring costs 21,873 4,186 81,829 47,661

 ---------- ---------- ---------- ----------
Operating income 45,457 38,337 51,113 45,074
Interest expense, net 119,832 65,777 416,037 201,486
Loss (gain) on disposition
 of representation
 contracts 111 (2,431) (18,173) (32,198)
Other expense
 (income), net - 338 - (3,221)
Loss (gain) on
 disposition of assets 44 - (221,312) (123,845)
 ---------- ---------- ----------- --------
Income (loss) before
 income taxes (74,530) (25,347) (125,439) 2,852
Income tax
 expense (benefit) (15,209) 1,244 (6,391) 33,751
Dividends and accretion
 on preferred stock
 of subsidiaries 3,906 - 11,846 17,601
 ---------- ---------- ---------- ----------
Loss before equity in
 net loss of affiliates,
 minority interest and
 extraordinary item (63,227) (26,591) (130,894) (48,500)
Equity in net loss of
 affiliates and
 minority interest 25,566 - 27,651 -
Extraordinary loss,
 net of income
 tax benefit 15,142 - 15,142 47,089
 ---------- ---------- ---------- ----------
Net loss (103,935) (26,591) (173,687) (95,589)
Preferred stock
 dividends 1,925 6,418 15,936 25,670
 ---------- ---------- ---------- ----------
Net loss attributable
 to common stockholders $(105,860) $ (33,009) $ (189,623) $(121,259)
 =========== =========== ============ ==========
Basic and diluted loss
 per common share $ (0.50) $ (0.23) $ (1.10) $ (0.88)
 =========== =========== ============ ==========
Weighted average
 basic common
 shares outstanding 209,928 142,636 172,967 137,979
 =========== =========== ============ ===========
Weighted average
 diluted common
 shares outstanding 225,025 165,151 193,042 161,655
 =========== =========== ============ ===========

------------------------------------------------------------------------
After tax cash flow(a)
 Basic $153,783 $95,861 $429,782 $305,283
 Diluted $155,708 $102,279 $445,718 $330,953

After tax cash flow
 per share:
 Basic $0.73 $0.67 $2.48 $2.21
 Diluted $0.69 $0.62 $2.31 $2.05
------------------------------------------------------------------------

(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.
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