AMFM Inc. Reports Record Second Quarter Results; Second Quarter Net Revenues Rise 34.9%; Operating Cash Flow Increases 39.8%; Diluted After Tax Cash Flow Per Share Rises 13.6% to $0.67.

DALLAS--(BUSINESS WIRE)--Aug. 2, 1999--

AMFM Inc. (NYSE:AFM) today announced record revenues and operating cash flow for the second quarter and six months ended June 30, 1999.

For the three months ended June 30, 1999, consolidated net revenues increased 34.9% to $434.1 million from $321.7 million last year. Operating cash flow (defined as operating income excluding depreciation and amortization and non-recurring charges) was $202.1 million for the second quarter of 1999, a 39.8% increase over $144.6 million in the corresponding period of 1998. The Company's diluted after tax cash flow (defined as operating cash flow less net interest expense and cash taxes) for the quarter ended June 30, 1999 was $0.67 per share compared to $0.59 per share for the second quarter of 1998, an increase of 13.6%.

AMFM Inc. reported a second quarter net loss attributable to common stockholders of $22.5 million, or $0.16 per share, compared with net income attributable to common stockholders of $2.1 million, or $0.01 per share, for the 1998 second quarter. The second quarter net loss is primarily due to an increase in non-cash depreciation and amortization expense and interest expense resulting from the Company's acquisition activities.

For the quarter ended June 30, 1999, on a pro forma basis (for the radio stations that AMFM Inc. owned or operated as of June 30, 1999), the Company's radio division reported net radio broadcasting revenues increased 12.2% and cash flow (defined as operating income excluding depreciation and amortization, corporate general and administrative charges and non-recurring charges) increased 15.0% compared to the quarter ended June 30, 1998. For the quarter ended June 30, 1999, on a pro forma basis, assuming the merger with Capstar Broadcasting had occurred on April 1, 1998, the Company's radio division reported net radio broadcasting revenues increased 11.1% and cash flow increased 15.2%, compared to the quarter ended June 30, 1998. For the quarter ended June 30, 1999, on a pro forma basis including all of the radio, outdoor and media representation assets owned or operated as of June 30, 1999, consolidated net revenues increased 8.3% and cash flow increased 9.3% compared to the quarter ended June 30, 1998.

Commenting on the results, James E. de Castro, Vice Chairman of AMFM Inc. and President and Chief Executive Officer of AMFM Radio, stated, "The second quarter proved to be a transitional period for AMFM as we addressed many issues related to the Company's corporate structure, installed senior management with extensive operating experience, reduced budgeted corporate overhead by 50%, unwound non-strategic acquisitions and increased the percentage of independent board members. Notwithstanding the dramatic annualized reduction in corporate overhead, we continued to invest in promising businesses such as Chancellor Marketing Group and launched an Internet initiative.

"Over the last four and one half months, we have established very specific goals intended to build value for our shareholders by generating financial results through top line growth, further cost savings and reduced debt. One of the most notable elements of this plan was the adoption of a senior management incentive program, which is triggered by AMFM shares appreciating to $100. While many companies have a stated goal of enhancing shareholder value, we believe our strategy definitively and clearly aligns the interests of our management and board with those of our stockholders.

"During the second quarter, we entered into a transaction which we believe is reflective of the Company's ability to innovatively create value. In June we entered into a definitive agreement whereby Lamar Advertising will acquire the Company's outdoor advertising business for $700 million in cash and 26.2 million Lamar common shares. The total consideration is presently valued at approximately $1.75 billion. Upon closing, expected early in the fourth quarter, this transaction will reduce debt and eliminate an operating segment which we deemed to be non-strategic, but still allow AMFM to participate in the increase in value generated from the outdoor assets under the management of proven executives.

"Following the close of the second quarter, the Company completed its merger with Capstar Broadcasting, creating the newly named AMFM Inc. In the second quarter Capstar generated pro forma revenue gains of 8.9% and pro forma cash flow gains of 15.6%. The completion of the merger provides myriad opportunities to enhance AMFM's consolidated financial performance by leveraging the companies' assets, sales efforts, programming and technological resources to meet our goals for growth."

For the six months ended June 30, 1999, consolidated net revenues increased 41.3% to $784.4 million compared with $555.3 million in the first six months of 1998. Operating cash flow in the first half of 1999 rose 46.0% to $326.0 million, compared with $223.3 million in the corresponding period of 1998.

For the six months ended June 30, 1999, on a pro forma basis, net radio broadcasting revenues increased 14.6% and cash flow increased 18.5% compared to the six months ended June 30, 1998. For the six months ended June 30, 1999, the Company's pro forma radio broadcast cash flow margin increased to 46.8% compared to 45.2% in the corresponding period of 1998.

For the the six months ended June 30, 1999, on a pro forma basis, assuming the merger with Capstar Broadcasting had occurred on January 1, 1998, the Company's radio division reported net radio broadcasting revenues increased 13.1% and cash flow increased 18.1%, compared to the six months ended June 30, 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, and the AMFM New Media Group, including Katz Media and AMFM's Internet operations. AMFM Radio Group with approximately 465 stations in 105 markets reaches a weekly listener base of 66 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. 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.

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. -0-

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

                             Three Months Ended      Six Months Ended
                                   June 30,               June 30,
                              1999        1998       1999       1998
                              ----        ----       ----       ----
Net revenues                $434,146    $321,710   $784,411   $555,267

Operating expenses excluding
  depreciation and
  amortization               219,258     168,843    427,768    316,862
Corporate general &
  administrative expenses     12,798       8,276     30,612     15,079
                            --------    --------   --------   --------
Operating cash flow          202,090     144,591    326,031    223,326
Depreciation and
  amortization               145,139     103,188    292,883    195,124
Non-recurring charges              -      59,475     28,979     59,475
                            --------    --------   --------   --------
Operating income (loss)       56,951     (18,072)     4,169    (31,273)
Interest expense, net         87,719      38,785    172,111     87,085
Other income                 (17,456)   (138,674)   (21,059)  (138,674)
                            --------    --------   --------   --------
Income (loss) before
  income taxes
  and extraordinary item     (13,312)     81,817   (146,883)    20,316
Income tax expense (benefit)   2,777      34,725    (27,349)    31,784
Dividends on preferred
  stock of subsidiary              -       6,691          -     16,702
                            --------    --------   --------   --------
Income (loss) before
  extraordinary item         (16,089)     40,401   (119,534)   (28,170)
Extraordinary loss, net
  of income tax benefit            -      31,865          -     31,865
                            --------    --------   --------   --------
Net income (loss)            (16,089)      8,536   (119,534)   (60,035)
Preferred stock dividends      6,418       6,418     12,835     12,835
                            --------    --------   --------   --------
Net income (loss)
  attributable to
  common stockholders       $(22,507)   $  2,118  $(132,369)  $(72,870)
                            ========    ========   ========   ========
Basic and diluted
  income (loss) per
  common share              $  (0.16)   $   0.01   $  (0.93)  $  (0.55)
                            ========    ========   ========   ========
Weighted average common
  shares outstanding         143,334     142,218    142,349    133,468
                            ========    ========   ========   ========

----------------------------------------------------------------------
After tax cash flow(a)
----------------------------------------------------------------------
  Basic                     $104,703     $92,697   $134,585   $106,704
----------------------------------------------------------------------
  Diluted                   $111,121     $99,115   $147,420   $119,539
----------------------------------------------------------------------
After tax cash flow per share:
----------------------------------------------------------------------
  Basic                        $0.73       $0.65      $0.95      $0.80
----------------------------------------------------------------------
  Diluted                      $0.67       $0.59      $0.89      $0.76
----------------------------------------------------------------------

(a)  After tax cash flow is defined as operating cash flow less net
     interest expense, dividends and cash taxes. Diluted after tax
     cash flow excludes dividends.