Arbitron Inc. Reports 2002 First Quarter Financial Results; Revenue Up 9.5% Over First Quarter 2001.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 18, 2002

Arbitron Inc. (NYSE: ARB) today announced results for the first quarter ended March 31, 2002.

For the first quarter, the Company reported revenue of $65.9 million, an increase of 9.5% over revenue of $60.2 million during the first quarter of 2001. Earnings before interest and taxes (EBIT) for the quarter were $27.6 million, compared with EBIT of $27.3 million during the same period last year. Net income for the quarter was $14.2 million, compared with $16.3 million for the first quarter of 2001.

Cost and expenses were higher than last year because of planned increased spending related to the RADAR(R) service, the Portable People Meter initiative, royalties, data collection, and research and development. Net income compared to 2001 declined as a result of interest expense related to the debt incurred in connection with the reverse spin-off from Ceridian on March 30, 2001.

Net income per share for the quarter was $0.49 (basic) and $0.48 (diluted), compared with $0.56 (basic and diluted) per share during the comparable period last year. The 2001 earnings per share amounts have been adjusted to reflect the one-for-five reverse split, which became effective following Arbitron's reverse spin-off from Ceridian on March 30, 2001. Effective January 1, 2002, the Company discontinued the amortization of goodwill in accordance with generally accepted accounting principles. Had the Company been required to adopt this accounting effective as of January 1, 2001, net income and diluted net income per share for the three months ended March 31, 2001 would have been $16.7 million and $0.57, respectively.

In announcing the results, Stephen Morris, president and chief executive officer of Arbitron said, "Our core business remains solid and continues to grow, even with the challenging economic environment. In the first quarter, we generated near double-digit percentage revenue growth, in part due to revenue from our recent RADAR acquisition. Our net earnings for the quarter were in line with our expectations and we remain on track in terms of our expectations for 2002."

"Since the beginning of the year, we delivered the first data to our charter customers in our new market of Mexico City and we began the groundwork for further expansion of our diary-based service in that country. We reached an important agreement with our radio network customers that allows us to use our existing diary database to produce the RADAR network audience estimates," Mr. Morris continued.

"This week, Arbitron signed a contract extension with Infinity Broadcasting Corporation, which gives their stations access to our Winter 2002 quarterly radio ratings until the release of the Spring 2002 radio survey as well as access to additional services currently provided. Negotiations for a long-term renewal of the Infinity Broadcasting contract continue," said Mr. Morris.

"We also have made significant progress in our Portable People Meter initiative," noted Mr. Morris. "We have reached our goal of recruiting 1,500 consumers for the second phase of the U.S. market trial and are getting ready to analyze the station specific ratings that this new phase of the PPM trial is now producing," said Mr. Morris. "This is the next important step in our efforts to form a joint venture with Nielsen Media Research."

About Arbitron

Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies and outdoor advertising companies in the United States, Mexico and Europe. Arbitron's core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. Arbitron Webcast Services measures the audiences of audio and video content on the Internet, commonly known as webcasts. The Company is developing the Portable People Meter, a new technology for radio, TV and cable ratings.

Arbitron's marketing and business units are supported by a world-renowned research and technology organization located in Columbia, Maryland. Arbitron has approximately 800 full-time employees; its executive offices are located in New York City.

Through its Scarborough Research joint venture with VNU Media Measurement & Information, Arbitron also provides media and marketing research services to the broadcast television, magazine, newspaper and online industries.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Arbitron in this release that are not historical in nature, particularly those that utilize terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes" or "plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which Arbitron has derived from the information currently available to it. These forward-looking statements involve known and unknown risks and uncertainties that may cause our results to be materially different from results implied in such forward-looking statements. These risks and uncertainties include whether we will be able to:

-- realize the benefits we expect to achieve from our spin-off from Ceridian
Corporation;

-- renew contracts with large customers as they expire;

-- successfully execute our business strategies, including timely
implementation of our Portable People Meter and our Webcast Ratings services,
as well as expansion of international operations;

-- effectively manage the impact of further consolidation in the radio
industry; and

-- keep up with rapidly changing technological needs of our customer base,
including creating new products and services that meet these needs.

Additional important factors known to Arbitron that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in Arbitron's filings with the Securities and Exchange Commission, including in particular the risk factors discussed under the caption "ITEM 1. BUSINESS - Business Risks" in our Annual Report on Form 10-K, which discussion is incorporated herein by reference.

The forward-looking statements contained in this release speak only as of the date hereof, and Arbitron undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

RADAR(R) is a registered trademark of Arbitron Inc.

                             Arbitron Inc.
                   Consolidated Statements of Income
                   Three Months Ended March 31, 2002
                    and 2001 (Dollars in thousands,
                        except per share data)
                              (Unaudited)

                         Three Months Ended
                            March 31,               $            %
                        2002         2001       Variance     Variance

Revenue                 $ 65,902     $ 60,190      $ 5,712     9.5%
Costs and expenses
   Cost of revenue        18,863       15,873        2,990    18.8%
   Selling, general and
    administrative        12,677       11,214        1,463    13.0%
Research and development   5,512        4,696          816    17.4%
     Total costs and
      expenses            37,052       31,783        5,269    16.6%

Operating income          28,850       28,407          443     1.6%

 Proportionate share of
   net loss of affiliate  (1,245)      (1,123)        (122)    10.9%

Earnings before interest
 and income taxes         27,605       27,284          321     1.2%
   Interest income           138           19          119   greater
                                                               than
                                                               100%
   Interest expense        4,586          386        4,200   greater
                                                               than
                                                               100%
Earnings before income
 taxes                    23,157       26,917      (3,760)  (14.0%)
   Income tax expense      8,915       10,622      (1,707)  (16.1%)

Net income (1)          $ 14,242     $ 16,295    $ (2,053)  (12.6%)

Net income per weighted
 average common
  share - (2)
   Basic                  $ 0.49       $ 0.56     $ (0.07)  (12.9%)
   Diluted                $ 0.48       $ 0.56     $ (0.08)  (14.8%)

Weighted average shares
 used in calculations
 (in thousands)
   Basic                  29,215       29,158
   Diluted                29,849       29,311

Other data  (3)
EBITDA                  $ 28,588     $ 28,359        $ 229     0.8%

      (1) Effective January 1, 2002, the Company adopted the provisions
        of Statement of Financial Accounting Standards No. 142
        "Goodwill and Other Intangible Assets," which required the
        Company to discontinue the amortization of goodwill and rather
        test such assets for impairment on an annual basis. Had the
        Company been required to adopt the provision of the
        pronouncement effective as of January 1, 2001, net income and
        diluted net income per share for the three months ended March
        31, 2001 would have been $16,721 and $0.57, respectively. The
        Company does not expect to have any goodwill impairment
        charges from the adoption of the new pronouncement during
        2002.

      (2) The computations of basic and diluted net income per common
        share for the three month period ended March 31, 2002 are
        based on Arbitron's weighted average shares of common stock
        and potentially dilutive securities outstanding, respectively.
        For the three-month period ended March 31, 2001, the net
        income per weighted average common share computations are pro
        forma computations based upon Ceridian's weighted average
        number of shares of Ceridian common stock and potentially
        dilutive securities outstanding. In November 2000, Ceridian's
        board of directors approved a one-for-five reverse stock
        split, which was effective immediately after the spin-off. Pro
        forma net income per common share and weighted average common
        shares outstanding presented herein have been adjusted to
        reflect this reverse stock split. The diluted weighted average
        common shares amounts assume that all of Ceridian's historical
        dilutive securities were converted into Arbitron securities.

      (3) EBITDA is presented as supplemental information that
        management of Arbitron believes may be useful to some
        investors in evaluating Arbitron because it is widely used as
        a measure to evaluate a company's operating performance before
        interest expense, as well as to evaluate its operating cash
        flow. EBITDA is calculated by adding back net interest
        expense, income tax expense, depreciation and amortization to
        net income. EBITDA should not be considered a substitute
        either for net income, as an indicator of Arbitron's operating
        performance, or for cash flow, as a measure of Arbitron's
        liquidity. In addition, because EBITDA is not calculated
        identically by all companies, the presentation here may not be
        comparable to other similarly titled measures of other
        companies.

                             Arbitron Inc.
                       Condensed Balance Sheets
                 March 31, 2002 and December 31, 2001
                        (Dollars in thousands)

                                      March 31,       December 31,
                                        2002              2001
                                     (Unaudited)       (Audited)
Assets:
Cash and cash equivalents              $ 15,524          $ 21,043
Trade receivables                        15,486            19,393
Deferred taxes                           19,860            28,342
Goodwill, net                            32,937            28,937
Other assets                             27,799            29,126

   Total assets                       $ 111,606         $ 126,841

Liabilities and Stockholders'
 Equity (Deficit):
Deferred revenue                       $ 40,233          $ 52,993
Long-term debt                          195,000           205,000
Other liabilities                        29,561            37,957
Stockholders' equity (deficit) (4)    (153,188)         (169,109)

   Total liabilities and
stockholders' equity (deficit)       $ 111,606         $ 126,841

      (4) Prior to the spin-off from Ceridian Corporation, Arbitron
        distributed its earnings to Ceridian. Those distributions,
        together with a $250 million distribution made to Ceridian on
        the date of the spin-off, gave rise to the stockholders'
        deficit. Proceeds from the issuance of long-term debt were
        used by Arbitron to make the $250 million distribution.