Big City Radio Revenues Rise 42% in Third Quarter 1998.

NEW YORK--(BUSINESS WIRE)--November 12, 1998--Big City Radio, Inc. (YFM:Amex) today announced its financial results for the three months ended September 30, 1998. Gross revenues for the third quarter were $4.5 million, a 42% increase over the gross revenues for the third quarter of 1997. Net revenues (defined as gross revenues minus agency commissions) for the third quarter were $4.0 million, which is also a 42% increase from the third quarter of 1997.

Broadcast cash deficit for the third quarter increased to $425,000 from $166,000 in the third quarter of last year, but improved sharply from a deficit of $1.3 million in the second quarter of 1998.

The net loss for the three months ended September 30, 1998 was $4.2 million, or $0.30 per share, compared to $6.2 million, or $0.66 per share, in the third quarter of 1997. Results for 1997 include a charge of $3.7 million related to management stock options.

"Our performance this quarter reflects a healthy 30% growth in same-station revenue and also includes results from our first Chicago station cluster, 103.1 FM Heart and Soul", which commenced operations earlier this year," stated Chief Executive Officer Michael Kakoyiannis. "During the third quarter, we acquired stations representing key elements of our second Chicago station cluster, and we also completed the acquisition of a station representing the strategically important fourth and final 107.1 FM frequency in the greater New York area. Our energies remain focused on developing our existing properties and evaluating acquisition opportunities in additional major markets", added Kakoyiannis.

In March 1998, the Company successfully completed an offering of $174,000,000 aggregate principal amount 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 be used 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.

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  Nine months ended
                                     September 30,     September 30,
                                  1998      1997      1998        1997
                                 ----      ----       ----       ----
Gross Revenues                  $ 4,531    $ 3,202  $ 11,131   $ 8,485
agency commissions                  495        364     1,187       947
Net Revenues                      4,036      2,838     9,944     7,538
Station Operating expenses        4,461      3,004    12,751     9,834
Broadcast cash flow                (425)      (166)   (2,807)   (2,296)
Corporate, general and
 administrative expenses            721        370     2,063     1,104
Employment Incentive                  -      3,713       808     3,713
Depreciation and amortization       701        501     1,737     1,223
Operating loss                   (1,847)    (4,750)   (7,415)   (8,336)
Interest expense, net             2,761      1,438     6,401     3,155
Other (income) expense, net           2        (10)      145       (56)
Loss before benefit from income
taxes and extraordinary loss     (4,610)    (6,178)  (13,961)  (11,435)
Income tax benefit                  418          -     1,519         -
Loss before extraordinary loss   (4,192)    (6,178)  (12,442)  (11,435)
Extraordinary loss                    -          -       495         -
                                ==========  =======  ========   ======
Net loss                         (4,192)  $ (6,178)  (12,937)$ (11,435)
                                 ========= ========= ========= =======
Basic and diluted loss per share:
Loss before extraordinary loss  $ (0.30)   $ (0.66)  $ (0.89)  $ (1.22)
   Extraordinary loss                 -          -     (0.04)     0.00
                                ========== ========== ======== =======
   Net loss                     $ (0.30)   $ (0.66)  $ (0.92)  $ (1.22)
                                ========== ========== ======== =======
Weighted average number of shares
 outstanding                14,069,275  9,375,520 14,011,580 9,375,520
                          ============  ========== ========  =========


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


                                           September 30,  December 31,
                                               1998          1997
                                               ----          ----
Assets
Cash, cash equivalents and marketable         $59,707          $80
   securities
Accounts receivable                             3,146        2,325
Interest receivable                             1,618            0
Prepaids and other current assets                 673          252
Total current assets                           65,594        2,657
Property and equipment, net                     3,884        2,679
Intangibles, net                               78,232       54,115
Deferred financing fees                         4,215          612
Other assets                                       91           45
Advance to purchase stations                      450            0
                                             ============  ===========
Total assets                                  152,016       60,108
                                             ============   ==========
Liabilities and stockholders' equity
Accounts payable                                1,034        1,125
Accrued expenses                                1,568        1,383
Other current liabilities                         169          368
Total current liabilities                       2,771        2,876
Notes payable, long-term debt                   2,850       30,100
Senior discount notes                         133,023            0
Deferred income tax liabilities                   469        2,100
Preferred stock
Common stock                                      141          140
Additional paid-in-capital                     27,831       27,024
Deficit                                       (15,069)      (2,132)
                                           ============   ===========
Total liabilities and stockholders' equity    152,016       60,108
                                           ============   ===========


                          Computation of earnings per share
                          (In thousands, execept per share)

                                  Three months Ended Nine months Ended
                                     September 30,      September 30,
                                    1998    1997       1998      1997
                                    ----   ----        ----      ----
Computation of earnings per share
 Net loss                         $ 4,192  $ 6,178   $12,937   $11,435
                                  ======== ========  ========  =======
Weighted average number of shares
 outstanding-basic                 14,069    9,376    14,012     9,376
Dilutive effect of stock options after
application of treasury stock method    0        0         0         0
Weighted average number of shares
 outstanding                       14,069    9,376    14,012     9,376
                                 =========  ========= ======= ========
Net loss per share                 $ 0.30   $ 0.66   $ (1.22)   $ 0.92
                                 ========= ========== =======  =======