AMFM Inc. to Sell Eight Radio Stations in Puerto Rico to Spanish Broadcasting System, Inc. for $90 Million.

DALLAS and SAN JUAN, P.R.--(BUSINESS WIRE)--Sept. 22, 1999--

AMFM Inc. (NYSE:AFM) announced today that it has entered into a definitive agreement with Spanish Broadcasting Systems, Inc. (SBS) whereby SBS will purchase eight FM radio stations in Puerto Rico from AMFM for $90 million cash. Collectively, the eight stations are ranked first by listenership and revenue market share in the Puerto Rico market. AMFM purchased the stations, which include WIOA-FM, WIOB-FM, WIOC-FM, WCOM-FM, WZMT-FM, WZNT-FM, WOYE-FM and WCTA-FM, late in 1998. The parties have also executed a time brokerage agreement to permit SBS to program and sell advertising time on the stations following expiration of the waiting period under the Hart-Scott-Rodino Act.

Commenting on the agreement, James E. de Castro, Vice Chairman of AMFM Inc. and President and Chief Executive Officer of AMFM Radio, stated, "This transaction is consistent with AMFM's strategy to divest non-strategic assets and focus on its leading core, domestic radio operations. The sale price reflects a significant premium over last year's purchase price.

"We are confident that SBS's Chief Executive, Raul Alarcon, and his talented management team who specialize in Spanish language programming and broadcasting will do an excellent job in delivering high quality, entertaining radio to listeners in Puerto Rico."

Completion of the transaction, expected to close in the fourth quarter of 1999, is subject to FCC approval and other customary closing conditions.

Spanish Broadcasting Systems is the nation's largest Hispanic owned radio broadcasting company with 13 FM stations across the United States in markets such as New York, Los Angeles, Miami, Chicago, and San Antonio. SBS also owns 80% of JuJu Media, the operator of the LaMusica.com web site.

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 approximately 451 stations in 101 markets reaches a weekly listener base of 65 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.