American Communications Enterprises Announces 189% Net Income Increase in 4th Quarter.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Jan. 25, 2000

American Communications Enterprises (OTCBB: ACEN) Tuesday announced that net income from the company's proposed &uot;flagship&uot; stations, according to ACEN Chief Executive Officer and President Dain Schult, experienced a 4th Quarter increase of 189% (non-audited) over the same period in 1998.

&uot;This net income increase is indicative of our ability to implement the changes as called for in our business plan for both increased efficiency and increased sales revenue,&uot; Schult stated. &uot;We expect that, when these stations are actually linked as part of a regional network configuration, we'll be able to turn even more impressive numbers,&uot; Schult concluded.

Application for FCC license transfer has been made and accepted by the FCC for ACEN's &uot;Flagship&uot; stations located in west central Texas.

The Asset Purchase Agreement for those stations, KXYL AM/FM in Brownwood, Texas and KSTA AM/FM in Coleman, Texas, was executed by Dain Schult, president and chief executive officer of ACEN, on Friday, Nov. 19, 1999 and accepted for filing for license transfer consideration by the Federal Communications Commission on Thursday, Dec. 2, 1999.

Closing on the purchase of these stations is anticipated to be in March of this year. These acquisitions represent the first step in company's strategic plan to become the nations foremost consolidator of non-rated radio broadcast properties. In the interim, ACEN is operating the stations on a Time Brokerage Agreement that was first initiated on June 1, 1999.

ACEN plans to acquire small market radio stations in clusters on a regional basis and expand to a nationwide network of as many as 400 or more stations. ACEN plans to use a &uot;Radio WalMart&uot; approach that will centralize functions such as programming, accounting and national and regional sales to significantly reduce operating expenses and enhance profits.

ACEN's Internet component is planned to include a variety of entertainment, gaming, and e-commerce sites along with local and national weather and news in a unique configuration that will successfully compete in this growing segment of the Internet Industry.

In addition to the entertainment and information components, ACEN plans to utilize the web site to increase national and regional advertising sales for the network. The Beta version of ACEN's web site can be accessed at www.radioace.com.

ACEN's performance and financial results could differ materially from those reflected in this release due to general financial, economic regulatory and political conditions or additional factors unknown to ACEN at this time as well as specific risks and uncertainties such as those set forth in documents filed by ACEN with the SEC (including, but not limited to, its most recent reports on Form 8-K, Form 10-Q and Form 10K copies of which are available upon request over the Internet at www.sec.gov).