AMFM Inc. Reports Record Third Quarter Results; Diluted After Tax Cash Flow Rises 30.7% to $142.6 Million; Pro Forma Consolidated Net Revenues Rise 13.1%; Cash Flow Increases 20.0%.

DALLAS--(BUSINESS WIRE)--Nov. 4, 1999--

AMFM Inc. (NYSE:AFM) today announced record revenues and operating cash flow for the third quarter and nine months ended September 30, 1999. The results for the three and nine months ended September 30, 1999 include the results of Capstar Broadcasting Corporation from July 13, 1999, the date the merger between Chancellor Media and Capstar Broadcasting was completed (the combined entity was simultaneously re-named AMFM Inc.) and the disposition of the Company's outdoor advertising assets as of September 15, 1999, the date the sale was completed.

For the three months ended September 30, 1999, consolidated net revenues increased 72.3% to $592.4 million from $343.8 million last year. Operating cash flow (defined as operating income excluding depreciation and amortization, merger and non-recurring costs) was $275.5 million for the third quarter of 1999, a 73.6% increase over $158.7 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 September 30, 1999 was $142.6 million compared to $109.1 million for the third quarter of 1998, an increase of 30.7%.

AMFM Inc. reported third quarter net income attributable to common stockholders of $48.6 million, or $0.23 per diluted share, compared with a net loss attributable to common stockholders of $15.4 million, or $0.11 per diluted share, for the 1998 third quarter. The 1999 third quarter net income reflects a $210.0 million pre-tax gain related to the sale of AMFM's outdoor advertising business to Lamar Advertising Company. As part of the sales proceeds, AMFM received 26.2 million shares or approximately 30% of Lamar Advertising Company's Class A common stock and will account for its investment on the equity basis.

During the third quarter, AMFM recorded a non-recurring charge of approximately $31.0 in connection with the merger with Capstar Broadcasting Company, the sale of the outdoor division, implementation of the Company's cluster strategy, streamlining the operations of Katz Media, and new systems development. Management expects to record an additional charge in the fourth quarter in connection with the implementation of the Company's cluster strategy.

For the quarter ended September 30, 1999, on a pro forma basis (for the radio stations that AMFM Inc. owned or operated as of September 30, 1999), the Company's radio division reported net radio broadcasting revenues increased 14.2 % and cash flow (defined as operating income excluding depreciation and amortization, corporate general and administrative charges, merger and non-recurring costs) increased 20.5%, compared to the quarter ended September 30, 1998. For the quarter ended September 30, 1999, on a pro forma basis including all of the radio and media representation assets owned or operated as of September 30, 1999, consolidated net revenues increased 13.1% and cash flow increased 20.0% compared to the quarter ended September 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, "Our record third quarter financial performance highlights the benefits of many of the strategic changes we initiated in the last seven months including the integration of the Capstar stations, the sale and ongoing equity participation in the outdoor advertising assets, and our efforts to continue generating industry-leading financial results from our well-clustered radio operations.

"The stations that now comprise AMFM also achieved terrific pro forma double-digit cash flow growth, largely attributable to the Company's programming, marketing and cluster focus. In addition to 14% pro forma top line growth and 20% pro forma cash flow growth, the radio group's pro forma margins -- a primary operating performance measure -- rose to 50.1% in the third quarter up from 47.5% during the same period in 1998, reflecting management's initiatives to contain costs. I'm very proud of the entire AMFM team who continue to outperform the industry by virtually every measure."

For the nine months ended September 30, 1999, consolidated net revenues increased 53.1% to $1.4 billion, compared with $899.1 million in the first nine months of 1998. Operating cash flow in the first nine months of 1999 rose 57.5% to $601.5 million, compared with $382.0 million in the corresponding period of 1998.

For the nine months ended September 30, 1999, on a pro forma basis, net radio broadcasting revenues increased 13.5% and cash flow increased 19.0% compared to the nine months ended September 30, 1998. For the nine months ended September 30, 1999, the Company's pro forma radio broadcast cash flow margin increased to 45.8% compared to 43.6% in the corresponding period of 1998.

Mr. de Castro continued, "Looking forward, AMFM has tremendous growth opportunities based on its radio focus as the former Chancellor and Capstar teams are sharing their operating, programming and marketing strengths across the whole portfolio of stations, lending confidence to our optimism for further operating improvements in 2000. I am confident we will continue to demonstrate radio's effectiveness to a growing base of clients seeking a targeted, cost-effective advertising platform.

"Subsequent to the end of the third quarter, AMFM agreed to merge with Clear Channel Communications, one of the radio industry's most successful broadcasters and the largest out-of-home media company in the world. The proposed transaction reflects our long-term commitment to the growth of shareholder value, our employees, our advertisers and the consumer marketplace which relies on out-of-home media for its local content, accessibility and low-cost, high-entertainment value."

About AMFM Inc.

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. Reflecting announced transactions, AMFM Radio Group, with over 440 stations in 100 markets, reaches a weekly listener base of approximately 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. 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      Nine Months Ended
                           September 30,           September 30,
                        1999        1998        1999        1998
                        ----        ----        ----        ----
Net revenues          $592,437   $343,829   $1,376,848    $899,096

Operating expenses
  excluding
  depreciation and
  amortization         303,492    175,062      731,260     491,924
Corporate general &
  administrative
  expenses              13,491     10,109       44,103      25,188
                      --------   --------   ----------    --------
Operating cash flow    275,454    158,658      601,485     381,984
Depreciation and
  amortization         236,842    120,648      529,725     315,772
Non-cash stock option
  compensation           6,148          -        6,148           -
Merger and
  non-recurring costs   30,977          -       59,956      59,475
                      --------   --------   ----------    --------
Operating income         1,487     38,010        5,656       6,737
Interest expense, net  124,094     48,624      296,205     135,709
Gain on disposition of
  representation
  contracts             (9,431)   (18,497)     (18,284)    (29,767)
Gain on disposition
  of assets           (208,950)         -     (221,356)   (127,404)
                      --------   --------   ----------    --------
Income (loss) before
  income taxes
  and extraordinary
  item                  95,774      7,883      (50,909)     28,199
Income tax expense      36,167        722        8,818      32,507
Dividends on preferred
  stock of subsidiary    7,940        899        7,940      17,601
                      --------   --------   ----------    --------
Income (loss) before
  extraordinary item
  and equity in losses
  of affiliates         51,667      6,262      (67,667)    (21,909)
Equity in losses of
  affiliates and
  minority interest      1,885          -        2,085           -
Extraordinary loss, net
  of income tax benefit      -     15,224            -      47,089
                      --------   --------   ----------    --------
Net income (loss)       49,782     (8,962)     (69,752)    (68,998)
Preferred stock
  dividends              1,176      6,417       14,011      19,252
                      --------   --------   ----------    --------
Net income (loss)
  attributable to
  common stockholders $ 48,606   $(15,379)  $  (83,763)   $(88,250)
                      ========   ========   ==========    ========
Basic income (loss)
  per common share    $   0.25   $  (0.11)  $    (0.52)   $  (0.65)
                      ========   ========   ==========    ========
Diluted income (loss)
  per common share    $   0.23   $  (0.11)  $    (0.52)   $  (0.65)
                      ========   ========   ==========    ========
Weighted average
  basic common
  shares
  outstanding          194,662    142,345      160,511     136,427
                      ========   ========   ==========    ========
Weighted average
  diluted common
  shares outstanding   214,392    164,032      182,379     160,082
                      ========   ========   ==========    ========

----------------------------------------------------------------------
After tax cash flow(a)
Basic                 $141,414   $102,718     $275,999    $209,422
Diluted               $142,590   $109,135     $290,010    $228,674

After tax cash
flow per share:
Basic                    $0.73      $0.72        $1.72       $1.54
Diluted                  $0.67      $0.67        $1.59       $1.43
----------------------------------------------------------------------

(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.