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CHILDREN'S BROADCASTING CORPORATION REPORTS SECOND QUARTER SALES AND ADVERTISING REVENUES THROUGH WEEK OF AUG. 9, 1993

 MINNEAPOLIS, Aug. 24 /PRNewswire/ -- Children's Broadcasting Corporation (NASDAQ: AAHS) today reported a second quarter net loss of $980,000, or $.31 per share, compared with a loss of $156,000 or $.10 per share during the same period of 1992. Net revenues were $185,000 compared to $128,000 for the second quarter of 1992. James G. Gilbertson, chief financial officer of the company, stated that the increased loss was due to an increase in network expenses and corporate support costs during the start-up phase of the network, along with a significant adjustment to market of stock award compensation totaling $362,500, relating to stock awards previously granted but vested in the second quarter. Gilbertson added that while network revenues are increasing, the company expects to continue to operate at a loss during the remainder of 1993.
 The company also announced the booking of several year-long and quarterly network orders which will add $350,000 of net revenues over the next 12 months. The companies placing these orders during the week of Aug. 9, 1993 were the major national accounts of Disney Home Video, General Mills/Cheerios, Toys "R" Us and Paramount Pictures. Christopher T. Dahl, president and chief executive officer of Children's Broadcasting, stated: "We are very pleased at the performance of our network national sales group in enabling us to achieve a new milestone with this growth spurt. The fact that such major companies believe in our concept and want to grow with us, confirms our belief that the future is bright and exciting for Radio AAHS."
 Dahl also stated that the entertainment industry has been a leader in supporting Radio AAHS. "Warner Brothers, Buena Vista and others have chosen the network as a vehicle for their message because they understand our target audience. We reach the kids who make entertainment requests and the parents who make the buying decisions. It's a unique listenership situation which Hollywood is taking seriously and we're pleased that the rest of the advertising community is following in their lead."
 Launched in October 1992, the Radio AAHS Network is broadcasting in the following markets:
 The flagship station, WWTC 1280 AM in Minneapolis; KPLS 830 AM, Los Angeles; KCTQ 850 AM, Ventura County, Calif.; WKDL 1050 AM, Washington, D.C.; KKDS 1060 AM, Salt Lake City; WITH 1230 AM, Baltimore; KIDR 740 AM, Phoenix; KYYD 1340 AM, Abilene, Texas; WKDV 1460 AM, Manassas, Va.; and WMXH 750 AM, Wilkes-Barre/Scranton, Penn.; as well as affiliates in Denver and Dallas/Fort Worth, which are expected to start broadcasting in September.
 The company recently announced its acquisition of the debt of Marsh Broadcasting Corporation, which it intends to use to acquire six AM radio stations previously operated by March in Dallas/Fort Worth; Kansas City, Kan.; Houston; Milwaukee; Washington D.C. and Minneapolis. The sale is subject to approval by the federal bankruptcy court in Los Angeles and transfer of the station's licenses will be subject to FCC approval. In the meantime, Children's Broadcasting Corporation is operating those stations under a management agreement known in the industry as LMA.
 Children's Broadcasting Corporation also recently announced that it had reached a preliminary agreement with the owners of radio station KPLS, Los Angeles, concerning the acquisition of that station. KPLS is currently operating as a network affiliate of Children's Satellite Network.
 Christopher T. Dahl, president and chief executive officer of Children's Broadcasting, stated that the acquisition of KPLS allows Children's Broadcasting to be in an ownership position in the major Los Angeles market, allowing the company to capture the entire advertising revenue stream from sales of the company's developing network in this market with a population of approximately 11.5 million people.
 -0- 8/24/93
 /CONTACT: Christopher T. Dahl, 612-926-1280; or James G. Gilbertson, 612-338-3300, both of the Children's Broadcasting Corporation/
 (AAHS)


CO: Children's Broadcasting Corporation ST: Minnesota IN: ENT SU: ERN

KH-DB -- MN023 -- 5634 08/24/93 18:24 EDT
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Date:Aug 24, 1993
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