CAPITAL CITIES ABC REPORTS RECORD EARNINGS FOR THE FOURTH QUARTER AND YEAR ENDING DECEMBER 31, 1994.

NEW YORK--(BUSINESS WIRE)--Feb. 6, 1995--Capital Cities/ABC, Inc. earnings for the fourth quarter and year ending December 31, 1994 were announced today by Thomas S. Murphy, Chairman of the Board and Chief Executive Officer. Consolidated net income for the fourth quarter of 1994 was a record $240,570,000, compared with $166,737,000 reported for the same period of 1993. Earnings per share for the fourth quarter of 1994 were a record $1.56, an increase of 51% from the $1.03 reported in last year's comparable quarter. Earnings per share for 1993 have been restated to reflect the Company's 10-for-1 stock split effective June 3, 1994.

As a result of the Company's fiscal calendar, the fourth quarter of 1994 had six less days than the fourth quarter of 1993. Despite the fewer number of days, net revenues for the fourth quarter of 1994 increased 12% from 1993, with broadcasting operations up 14%. Net revenues for the ABC Television Network and the television stations increased significantly. ESPN continued to report substantial revenue increases, while the radio operations reported moderate revenue growth. Publishing revenues increased 4%, with newspapers and specialized publications reporting comparable gains.

Operating income for the fourth quarter of 1994 was $439,620,000, compared with $302,495,000 reported in 1993, a 45% increase, with broadcasting operations increasing by 47%. The ABC Television Network reported a significant gain in operating income as it continues to enjoy strong advertiser demand. Earnings at ESPN were up significantly, while television stations and radio operations also reported substantial gains. Publishing earnings increased 17%, reflecting moderate increases at the newspapers and significant gains at the specialized publications.

Consolidated net income for the full year of 1994 was $679,814,000, compared with $467,379,000 in 1993 (before an extraordinary charge). Earnings per share for 1994 were $4.42, an increase of 55% from the $2.85 reported in 1993 (before the extraordinary charge). Average shares outstanding for 1994 were 153,890,000 compared with 163,800,000 in 1993. The decline reflects the Company's repurchases of its common stock in both years. In 1993 the Company recorded an extraordinary charge (after-tax) of $12,122,000, or $0.07 per share, relating to early debt redemptions. The 1993 earnings per share and average shares outstanding have been restated to reflect the 1994 stock split.

Net revenues for 1994 increased 12% from 1993, with broadcasting operations up 13%. Net revenues for the ABC Television Network increased significantly, due principally to greater advertiser demand and an improved marketplace. ESPN continued to report substantial revenue increases, while the television stations and radio revenues increased moderately. Publishing revenues increased 9%, with newspapers and specialized publications reporting comparable gains.

Operating income for 1994 was $1,238,811,000, compared with $862,149,000 in 1993, an increase of 44%, with broadcasting operations up 45%. The ABC Television Network, ESPN and the radio operations each increased very significantly over 1993. Operating earnings at the television stations were up substantially. Publishing earnings increased 23%, with the newspapers and specialized publications both reporting substantial increases.

Capital Cities/ABC operates the ABC Television Network and eight television stations, the ABC Radio Networks and 19 radio stations, and provides programming for cable television. The Company is engaged in international broadcast/cable services and television program production and distribution. Also, the Company publishes daily and weekly newspapers, shopping guides, various specialized and business periodicals, and books. -0-

                            CAPITAL CITIES/ABC, INC.
                    SUMMARY STATEMENT OF CONSOLIDATED INCOME
                      (Thousands of Dollars)    (Unaudited)

                              Three Months Ended          Year Ended
                                 December 31,            December 31,
                              1994        1993        1994        1993

Net revenues                $1,974,264 $1,755,119 $6,379,237 $5,673,653
Costs and expenses
   Direct operating costs    1,490,838  1,413,294  4,967,891  4,655,127
   Depreciation                 27,843     24,009    109,128     95,032
   Amortization of intangibles  15,963     15,321     63,407     61,345
                             1,534,644  1,452,624  5,140,426  4,811,504

Operating income               439,620    302,495  1,238,811    862,149

Interest expense               (14,504)   (13,003)   (55,070)   (59,772)
Interest income                  8,842      8,092     24,553     36,650
Miscellaneous, net              (5,388)    (2,647)    (2,980)   (10,648)
Income before income taxes     428,570    294,937  1,205,314    828,379
Income taxes                  (188,000)  (128,200)  (525,500)  (361,000)
Income before extraordinary
   charge                      240,570    166,737    679,814    467,379
Extraordinary charge                 -          -          -    (12,122)
Net income                  $  240,570 $  166,737 $  679,814 $  455,257

Income per share
   Before extraordinary charge  $ 1.56     $ 1.03     $ 4.42     $ 2.85
   Extraordinary charge              -          -          -       (.07)
   Net income                   $ 1.56     $ 1.03     $ 4.42     $ 2.78

Average shares (000's)         154,040    161,100    153,890    163,800

                    SUMMARY OF OPERATIONS BY BUSINESS SEGMENT
                      (Thousands of Dollars)    (Unaudited)

Net revenues
   Broadcasting             $1,690,524 $1,481,871 $5,277,126 $4,663,215
   Publishing                  283,740    273,248  1,102,111  1,010,438
        Total               $1,974,264 $1,755,119 $6,379,237 $5,673,653

Operating income
   Broadcasting             $  409,784 $  278,595 $1,127,198 $  778,077
   Publishing                   42,160     35,987    155,018    125,647
     Income from operations    451,944    314,582  1,282,216    903,724
   General corporate expense   (12,324)   (12,087)   (43,405)   (41,575)
        Total               $  439,620 $  302,495 $1,238,811 $  862,149

CONTACT: Capital Cities/ABC Inc.

Joseph M. Fitzgerald - Vice President, Investor Relations 

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