Big City Radio Receives Bridge Loan; Company to Make Interest Payment on Senior Notes.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 12, 2001

Big City Radio, Inc. (Amex:YFM) today announced that it has received a $15 million bridge loan from UBS Warburg LLC.

As previously announced, the Company did not make the interest payment on its 11 1/4% Senior Discount Notes due 2005 that was due on September 15th, 2001. Under the Indenture governing the Notes, the Company has a grace period until October 15, 2001 to make the interest payment.

The Company will use a portion of the proceeds from the bridge loan to make the interest payment on the Senior Notes.

The bridge loan will bear an interest rate of LIBOR plus 3.0% or the Base Rate plus 2.0%. The Company expects to repay the bridge loan in its entirety upon the consummation of the sale of the Company's four Phoenix radio stations pursuant to an agreement that was previously announced.

Big City Radio, Inc. owns 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, Chicago, and Phoenix, four of the largest radio markets in the United States, an in-house radio rep firm, and a Hispanic publishing business and internet portal website in Miami.

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, including its most recently filed Forms 10-K and 10-Q.