Border Media Partners Closes $15 Million Financing from Goldman Sachs Urban Investment Group and Darby-BBVA Latin America Private Equity Fund, LP.

Business Editors

HOUSTON--(BUSINESS WIRE)--June 12, 2003

New Funds Help in Acquisition of Two Radio Stations;

Brings Total Capital Raised in First Year to $25 Million

Border Media Partners, LLC ("Border Media") announced today that it has received $15 million in equity and mezzanine debt financing from the Goldman Sachs Urban Investment Group and Darby-BBVA Latin America Private Equity Fund, LP, bringing the total capital raised in the company's first year to $25 million ($15 million in equity). The new capital will be used to acquire selected radio broadcasting stations, to finance launch costs and capital expenditures, and for general working capital purposes. In conjunction with the financing, Border Media also announced it has acquired two Texas radio stations, KILM FM, 102.1 in the Rio Grande Valley and KBDR FM, 100.5 in Laredo, from Sendero Multimedia. With these acquisitions, Border Media and its affiliates now own or operate six Spanish-language radio stations, reaching over 4 million listeners along the Texas-Mexico border. In an era of rapid media consolidation, Border Media is a rare, independent, Hispanic-owned and managed company with Mexican-Americans comprising the majority of its shareholders and Board members.

"We're building a dynamic bi-national company in several key markets along the Texas-Mexico border," said Thomas Castro, President, CEO and Vice Chairman of Border Media. "Buoyed by the strong growth in trade between the US and Mexico, these markets are among the fastest growing in the U.S. We're excited to welcome as our partners the Goldman Sachs Urban Investment Group and the Darby-BBVA Latin American Private Equity Fund - two investors who share our vision of the opportunity of the border region and the U.S. Hispanic radio market."

Border Media is capitalizing on the strong, positive trend in Hispanic-targeted media and advertising. The stations deliver predominantly Spanish-language programming in Spanish pop and Mexican regional formats. Located along the Texas-Mexico border, Border Media's radio stations serve the rapidly growing U.S. populations in the Rio Grande Valley and Laredo (approximately 90-95% of whom are of Hispanic origin1) as well as the large Mexican populations directly across the border. These markets have experienced rapid development since the passage of the North American Free Trade Agreement in 1994. McAllen, Texas, located in the heart of the Rio Grande Valley, ranked #2 in job growth on the 2003 Forbes list of "Best Places For Business and Careers" and Laredo ranked #3 in job growth on the 2003 Forbes list of "Best Small Places For Business and Careers."2 Today, 43% of all US-Mexico ground-transported trade passes through Laredo3.

Rafael Garza, President of RGG Capital Partners LLC and the Chairman of Border Media, said: "We are proud of Border Media's high quality group of local and global investors and board members who bring significant experience and resources to the table. In just one year, we've established ourselves as a leading Spanish language radio operator in our markets. We're looking for opportunities for growth in these and other markets where we can provide first rate programming to our listeners and deliver great value to our advertisers."

"A key focus of the Goldman Sachs Urban Investment Group is to provide growth capital to high quality, minority-owned companies, and we are excited about the opportunity to partner with Tom Castro, a seasoned radio entrepreneur, and his team of experienced media professionals," said Kevin Jordan, Vice President of Goldman Sachs and a Border Media Board member. "Border Media is now poised to take advantage of the tremendous growth in the markets along the Texas-Mexico border."

"We are delighted to have acquired a 15 percent equity stake in Border Media Partners and we look forward to taking a seat on the company's Board," said Richard H. Frank, Chief Executive Officer of Darby Overseas Investments Ltd. ("Darby"), which manages the Darby BBVA Latin American Private Equity Fund, L.P. "The rapidly growing US-Hispanic market represents an enormous investment opportunity and it is absolutely logical that it should play a key role in the innovative strategies of our firm that focuses on the Latin American region. Darby intends to make future investments in companies that are directly engaged on both sides of the border. We view this very important investment as an extension of our emerging markets strategy to capture broadening Latin investment opportunities as the economy of Mexico becomes increasingly entwined with that of the U.S. and as growing numbers of people across Latin America have close ties to relatives working today in the U.S."

Border Media's initial investors also included the Tony Sanchez, Jr., family of Laredo, Texas, and Buena Ventura Communications of Los Angeles, California. Mr. Sanchez is an oil and gas producer and past Chairman and major shareholder of International Bank of Commerce, the largest minority-owned bank in America. Other early investors included friends and family of the founders throughout the U.S. and Mexico.

Border Media Partners, LLC is a broadcasting company serving selected high growth markets along and near the U.S.-Mexico border. Founded by Thomas Castro and RGG Capital Partners, LLC, Border Media and its affiliates currently own or operate six stations in the Rio Grande Valley and Laredo, Texas. Mr. Castro previously founded El Dorado Communications in 1993. El Dorado owned Hispanic radio stations in Houston, Dallas and Los Angeles, which were purchased for $23 million and recently sold for $140 million. Mr. Castro is based in Houston and this is the fourth company he has founded.

RGG Capital Partners, LLC ("RGG") founded by Rafael G. Garza, is a private equity firm focused on investing in companies in Latin America, with an emphasis on Mexico and the U.S.-Mexico border. RGG seeks to make investments in middle-market growth companies impacted by increasing international trade and works with management to utilize its expertise in the region for the benefit of portfolio companies. RGG is based in Fort Worth, Texas and is an affiliate of Kleinheinz Capital Partners, Inc.

The Goldman Sachs Urban Investment Group is a private equity initiative within The Goldman Sachs Group, Inc., that invests capital in ethnic minority-owned or targeted businesses and urban real estate. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. Goldman Sachs also has offices in Dallas and Houston, Texas.

(1)Source: 12/16/99 Report: US Bureau of the Census Population Division

(2)Source: Forbes Magazine May 9, 2003

(3)Source: Spring 2003 Laredo Development Foundation & US Customs

The Darby-BBVA Latin American Private Equity Fund is a partnership managed by Darby that involves BBVA, Spain's largest bank. Darby is a private emerging markets' investment firm established in 1994. Headquartered in Washington, D.C., the firm was founded by Nicholas F. Brady, former Secretary of the U.S. Treasury under former President George H.W. Bush. Darby sponsors and manages funds for institutional investors and high-net worth individuals that invest in Latin American private equity, emerging markets mezzanine finance transactions in Latin America and in Asia, and global emerging markets and high yield fixed income securities. In addition, Darby sponsors and manages a specialized operating company that provides capital, advisory services and office facilities services to technology firms in Latin America. BBVA owns Bancomer, Mexico's largest bank, and Darby owns a significant position in Banorte, based in Monterey, Mexico, near the Texas-Mexico border.