Big City Radio Grows Revenues 24% in the Second Quarter 1998.

NEW YORK--(BUSINESS WIRE)--Aug. 12, 1998--Big City Radio, Inc. (AMEX:YFM) today announced its financial results for the second quarter of 1998. Gross revenues for the three months ended June 30, 1998 were $3,942,000, an increase of $757,000 or 24% over the gross revenues for the three months ended June 30, 1997 of $3,185,000. Net revenues in the three months ended June 30, 1998 were $3,509,000 as compared to $2,829,000 for the three months ended June 30, 1997, an increase of $680,000, or 24%.

                             Three Months Ended June 30,
($000s, except per share amounts)    1998     1997     Change

Gross Revenues                    $ 3,942  $ 3,185      24%
Net Revenues(a)                     3,509    2,829      24%
Broadcast Cash Flow (Deficit)      (1,279)    (570)    124%
Net Loss                          ($5,459) ($2,253)    142%

Basic and Diluted Net Loss
  Per Share:                       ($0.39)  ($0.24)     62%

(a) Gross revenues minus agency commissions

In the three months ended June 30, 1998, the Company reported a broadcast cash deficit from station operations of $1,279,000 as compared to a deficit of $570,000 for the three months ended June 30, 1997.

Net loss for the three months ended June 30, 1998 was $5,459,000, or $0.39 per share, compared to $2,253,000, or $0.24 per share, for the three months ended June 30, 1997.

"The second quarter results demonstrate the growth and development of our Los Angeles and New York properties, and the initial start-up of our first Chicago property", stated Michael Kakoyiannis, the Company's President and Chief Executive Officer. "This quarter represented the first complete quarter in which our programming and engineering initiatives were in place for Los Angeles. In New York, we continued to implement our engineering and programming plans throughout the period, while Chicago has completed its first quarter of development. Furthermore, during the quarter we announced the signing of asset purchase agreements to purchase our second Chicago station group, and the strategically important fourth New York 107.1 station. We are continuing to pursue additional attractive acquisition opportunities in major markets."

In March 1998, the Company successfully completed an offering of $174,000,000 aggregate principal amount at maturity of 11.25% Senior Discount Notes, due 2005. Gross proceeds of $125.4 million were used to repay all amounts under its outstanding credit facility, and will also be used in part to finance the acquisition of radio station properties and assets, and for general working capital purposes.

As the Company is in the early stage of development, the Company expects to generate significant operating and net losses as it continues to expand its presence in major markets. Management believes that its goals will be achieved through the Company's successful implementation and execution of its growth strategy. Big City Radio, Inc. acquires radio broadcast properties in or adjacent to major metropolitan markets and utilizes innovative engineering techniques and low-cost, ratings-driven operating strategies to develop these properties into successful metropolitan radio stations. Big City Radio currently owns and operates radio stations in New York, Los Angeles and Chicago, the three largest radio markets in the United States. Stuart Subotnick, Chairman of Big City Radio, Inc. and a general partner of Metromedia Company, is a majority shareholder of the Company's Common Stock.

This partial discussion of the statements of financial condition and operations of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Form 10-Q for the three months ended June 30, 1998, as filed with the U.S. Securities and Exchange Commission.

Statements in this news release relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve risks, uncertainties, and other factors, which may cause the actual results, performance or achievements of Big City Radio, Inc. to be materially different from those expressed or implied by such forward-looking statements. Such factors include shifts in population and other demographics, changes in audience tastes, the level of competition for advertising dollars, priorities of advertisers, fluctuations in operating costs, new laws and government regulations and policies, changes in broadcast technical requirements, changes in the willingness of financial institutions and other lenders to finance radio station acquisitions and operations, and other factors which are described in the Company's Securities and Exchange Commission filings.

                         BIG CITY RADIO, INC.
                Consolidated Statements of Operations
      (all numbers in $000s, except share and per share amounts)

                Three months Ended June 30,  Six months Ended June 30,
                        1998        1997        1998          1997

Gross Revenues      $ 3,942      $ 3,185      $ 6,600       $ 5,283
agency commissions      433          356          692           583
                    -------      -------      -------       -------
Net Revenues          3,509        2,829        5,908         4,700
Station Operating
  expenses            4,788        3,399        8,290         6,830
                    -------      -------      -------       -------
Broadcast cash flow  (1,279)        (570)      (2,382)       (2,130)
Corporate, general
  and administrative
  expenses              610          400        1,180           734
Employment Incentive    808            -          808             -
Depreciation and
  amortization          622          402        1,198           722
                    -------      -------      -------       -------
Operating loss       (3,319)      (1,372)      (5,568)       (3,586)
Interest expense, net 2,645          899        3,640         1,717
Other (income)
  expense, net          106          (18)         143           (46)
                    -------      -------      -------       -------
Loss before benefit
  from income taxes
  and extraordinary
  loss               (6,070)      (2,253)      (9,351)       (5,257)
Income tax benefit      611            -        1,101             -
                    -------      -------      -------       -------
Loss before
  extraordinary loss (5,459)      (2,253)      (8,250)       (5,257)
Extraordinary loss        -            -          495             -
                    -------      -------      -------       -------
Net loss             (5,459)      (2,253)      (8,745)       (5,257)
                    =======      =======      =======       =======

Basic and diluted
  loss per share:
   Loss before
     extraordinary
     loss            ($0.39)      ($0.24)      ($0.59)       ($0.56)
   Extraordinary loss  0.00         0.00        (0.04)         0.00
                    -------      -------      -------       -------
   Net loss          ($0.39)      ($0.24)      ($0.63)       ($0.56)
                    =======      =======      =======       =======
Weighted average
  number of shares
  outstanding    13,988,913    9,375,520   13,982,253     9,375,520
                 ==========    =========   ==========     =========


                         BIG CITY RADIO, INC.
                      Consolidated Balance Sheets
                        (all numbers in $000s)

                                                June 30,    December 31,
                                                  1998          1997
                                                  ----          ----
Assets
Cash, cash equivalents, and marketable
  securities                                   $83,839           $80
Accounts receivable, net                         2,635         2,325
Prepaids and other current assets                  489           252
                                               -------       -------
Total current assets                            86,963         2,657
Property and equipment, net                      3,179         2,679
Intangibles, net                                53,282        54,115
Deferred financing fees                          4,378           612
Other assets                                     2,272            45
                                               -------       -------
Total assets                                   150,074        60,108
                                               =======       =======

Liabilities and stockholders' equity
Accounts payable                                   577         1,125
Accrued expenses                                 1,935         1,383
Other current liabilities                          147           368
                                               -------       -------
Total current liabilities                        2,659         2,876
Long-term debt                                       0        30,100
Senior discount notes                          129,433
Deferred income tax liabilities                    887         2,100
Common stock                                       141           140
Additional paid-in-capital                      27,831        27,024
Deficit                                        (10,877)       (2,132)
                                               -------       -------
Total liabilities and stockholders' equity     150,074        60,108
                                               =======       =======


                         BIG CITY RADIO, INC.
                   Computation of earnings per share

                              Three months Ended     Six months Ended
                                   June 30,                June 30,
                            1998          1997      1998          1997

Computation of earnings
  per share
Net loss              ($5,459,000) ($2,253,000) ($8,745,000) ($5,257,000)
                      ===========  ===========  ===========  ============

Weighted average number
  of shares
  outstanding-basic    13,988,913    9,375,520   13,982,253    9,375,520
Dilutive effect of
  stock options after
  application of
  treasury stock method         0            0            0            0
                      -----------  -----------  -----------  -----------
Weighted average
  number of shares
  outstanding          13,988,913    9,375,520   13,982,253    9,375,520
                      ===========  ===========  ===========  ===========

Net loss per share         ($0.39)      ($0.24)      ($0.63)      ($0.56)
                      ===========  ===========  ===========  ============

CONTACT: G. A. Kraut Company, New York

Jeff Luth, [phone]