CHILDRENS BROADCASTING CORPORATION ANNOUNCES SECOND QUARTER AND SIX MONTHS FINANCIAL RESULTS; Second Quarter Revenues Increase 26%, Six Months Revenues Up 36%; Six Months Network Revenues Up 174% Over Comparable Year Ago Period.

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 10, 1995--CHILDRENS BROADCASTING CORPORATION. (CBC) (Nasdaq Symbol: AAHS), today announced financial results for its second quarter and six months ended June 30, 1995.

Revenues for the quarter ended June 30, 1995 increased 26% to $1,404,272 from $1,115,530 reported for the same period a year ago. The net loss for the period was $1,073,483, or $(0.20) per share, compared to a net loss of $728,954, or $(0.14) per share, for the second quarter ended June 30, 1994.

Revenues for the six months ended June 30, 1995 increased 36% to $2,666,102 from $1,953,328 for the six months ended June 30, 1994. The net loss for the period was $2,511,861, or $(0.46) per share, compared to a net loss of $1,755,475, or $(0.33) per share, for the comparable year ago period.

Commenting on the results, Christopher T. Dahl, chairman of the board and president of Childrens Broadcasting Corporation, stated, "The Company's revenue growth continued to be positively affected by revenue growth at the Company's owned and operated stations, including those operated under Local Marketing Agreements (LMA's). The increase in Network revenues, 174% over the comparable six month period of fiscal 1995, is primarily due to the fact that we signed several advertisers who have committed to purchase advertising time throughout 1995, some of which began advertising in the first quarter. This action is testament to the growing popularity and interest in the Radio AAHS(R) format as well as the return on the investment we have made in network affiliates."

Mr. Dahl continued, "Despite increased losses for the second quarter and six months compared to the same year ago periods, we remain encouraged by the Company's continued revenue growth, especially at the Network level, a trend we anticipate will continue. Consequently, we are optimistic that losses will decrease throughout the year as revenues increase and expenses remain steady."

"We are also encouraged by consumers' acceptance of Radio AAHS(R) Magazine, a monthly magazine produced in partnership with Warner Music Enterprises. This one of a kind magazine is mailed with a companion CD or cassette tape featuring 8-10 Radio AAHS(R) hit songs. The response to the product continues to be positive. We anticipate that the magazine will operate profitably for the Company as the number of subscribers continues to increase and as CBC receives a greater royalty to offset expenses. In fact, during the second quarter Radio AAHS(R) Magazine's circulation was well up over the 50,000 mark Warner Music Enterprises targeted for its initial launch."

"Additionally, CBC continued to achieve important milestones during the second quarter, including: adding 26th affiliate, KKSO-AM in Des Moines, Iowa; launching of the Radio AAHS(R) World Wide Web site on line through Time Warner's Pathfinder; celebrating the fifth birthday of flagship station, WWTC-AM, Minneapolis; and celebrating the one year anniversary of live programming from Disneyland. We would like to thank our employees for their hard work and dedication, as well as our loyal listeners, for helping us reach these milestones."

The Company noted that it continues to explore the various opportunities available to it as it relates to funding CBC's next stage of growth.

Children's Broadcasting Corporation develops, produces and broadcasts radio programming for children age 12 and under and their parents. the company, which broadcasts via satellite from its flagship station WWTC-AM in Minneapolis, is the only radio network in the United States providing 24-hour programming for children. -0-

                 CHILDREN'S BROADCASTING CORPORATION
                CONSOLIDATED STATEMENT OF OPERATIONS
                             (Unaudited)

                 Three Months Ended      Six Months Ended
                       June 30                June 30
                  1995        1994       1995         1994

Revenues:
 Owned,
 Operated and
 LMA Stations  $1,140,322   $958,768  $2,030,126  $1,721,099
 Network          263,950    156,762     635,976     232,229
Total Revenues $1,404,272 $1,115,530   2,666,102   1,953,328
Operating
Expenses:
 Owned,
 Operated and
 LMA Stations:
 General and
 Administrative   480,243    689,754   1,041,702   1,454,684
 Technical and
 Programming      231,345    185,278     525,901     349,421
 Selling          409,440    271,866     904,308     603,553
                1,121,028  1,146,899   2,471,911   2,407,659
Network:
 General and
 Administrative   127,724     78,916     258,074     217,085
 Programming      150,119     80,494     282,069     184,168
 Selling          255,323    157,037     583,224     225,055
 Merchandising      6,684      6,023      13,244      19,377
 Magazine          38,567      -----      57,558       -----
                  578,417    322,470   1,194,169     645,685

Corporate         363,565    333,325     727,964     596,018
Depreciation and
 Amortization     225,391     51,968     457,191     103,937
Loss on Exchange
 of Assets         24,226      -----      28,687       -----
  Total
  Operating
  Expenses      2,312,627  1,854,662   4,879,922   3,753,299

Loss from
 Operations     (908,355)   (739,131) (2,213,820) (1,799,970)
Interest
 Expense (Net
 of Interest
 Income)          165,123    (10,177)    298,041     (44,495)

Net Loss      ($1,073,483) ($728,954)($2,511,861)($1,755,475)

Net Loss
 Per Share         ($0.20)    ($0.14)     ($0.46)     ($0.33)

Weighted
 Average Number
 of Shares
 Outstanding    5,420,000  5,372,000   5,420,000   5,372,000

CONTACT: Childrens Broadcasting Corporation, Minneapolis

James Gilbertson, CFO, 612/338-3300;

Joy Plaschko, Media Relations, 612/330-9524

or

Lippert/Heilshorn & Associates, New York

Jeffrey Volk, 212/838-3777 -- Ext. 102