Arbitron Updates Financial Guidance for 2004; Arbitron Reaches Multi-Year Agreement with Infinity Broadcasting for Radio Rating Services.

NEW YORK -- Arbitron Inc. (NYSE: ARB) today announced that it has reached an agreement with Infinity Broadcasting Corporation, a division of Viacom Inc., (NYSE: VIA and VIAB) for a multi-year contract including radio ratings and other related services.

Taking into account this renewed contract with Infinity Broadcasting and a further review of the company's business operations, Arbitron expects year-end 2004 revenue to increase between 8.5 percent and 10.5 percent over year-end 2003. Earnings Before Interest & Taxes (EBIT) is expected to increase between 6 percent and 8 percent. Net Income is expected to increase 12 percent to 14 percent. Earnings Per Share (diluted) for the year ending December 31, 2004 is expected to be between $1.75 and $1.79.

For the third quarter 2004, Arbitron expects revenue to increase between 10 percent and 11.5 percent over third quarter 2003. Third quarter Earnings Before Interest & Taxes (EBIT) is expected to increase between 8.5 percent and 10.5 percent. Net Income is expected to increase 14 percent to 16 percent. Earnings Per Share (diluted) for the third quarter 2004 is expected to be between $0.61 and $0.63.

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. 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 its research and technology organization located in Columbia, Maryland. Arbitron has approximately 1700 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 document 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 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:

--renew all or part of contracts with large customers as they expire;

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

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

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

--successfully manage the impact on our business of any economic downturn generally and in the advertising market in particular; and

--successfully manage the impact on costs of data collection due to privacy concerns and/or government regulations.

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.

The forward-looking statements contained in this document 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.

Arbitron Inc.
                     EBIT Guidance Reconciliation
    Quarter Ending September 30, 2004 and Year Ending December 31,
                                 2004
                             (In millions)


                                       Quarter Ending   Year Ending
                                       September 30,   December 31.
                                            2004            2004
                                       Guidance Range  Guidance Range
                                         Low     High   Low    High

Earnings before interest and income
 taxes                                   $33.2  $33.8  $98.3  $100.1
Income tax expense                        12.3   12.6   35.8    36.6
Net interest expense                       1.5    1.5    6.6     6.6

Net Income (Guidance)                    $19.4  $19.7  $55.9   $56.9

Note: Earnings before interest and income taxes (EBIT) is a widely used measure of operating performance. EBIT guidance is given because the management of Arbitron believes it is useful to investors to evaluate the Company's projected results because it excludes certain items that are not directly related to the Company's core operating performance. EBIT is calculated by adding back net interest expense and income tax expense to net income. EBIT should not be considered as 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.