Capstar Broadcasting Partners Completes Acquisition of Osborn Communications Corporation.

DALLAS, AUSTIN, Texas and GREENWICH, Conn.--(BUSINESS WIRE)-- Feb. 21, 1997-- Hicks, Muse, Tate & Furst Incorporated, of Dallas, a leading private investment firm, and Capstar Broadcasting Partners, of Austin, a middle-market radio group formed in May 1996 by Hicks Muse and radio industry veteran R. Steven Hicks, today announced that Capstar has completed its previously announced acquisition of Osborn Communications Corporation, of Greenwich, Connecticut, an owner/operator of diverse media properties including, after certain announced acquisitions and dispositions, a total of 20 FM and AM radio stations in mid-sized markets in the eastern United States. The transaction is valued at more than $100 million. Capstar also announced that, in connection with the financing of the Osborn acquisition and other pending acquisitions, it has received $150 million of proceeds from the sale of discount notes maturing in 2009.

With the completion of the Osborn Communications transaction, Capstar now owns and operates, or provides sales and marketing services to, a total of 53 radio stations in 12 mid-sized markets across the United States, and, in addition, has contracts to acquire an additional 67 radio stations in an additional 19 markets nationwide. The total of 120 radio stations in 31 markets makes Capstar one of the largest radio groups, based on station count, in the United States.

Upon consummation of all its pending acquisitions and dispositions, Osborn -- which was formed in 1984 by Frank D. Osborn, its President and Chief Executive Officer, and which is now a wholly owned subsidiary of Capstar Broadcasting -- will own 12 FM and 8 AM radio stations in the following markets: Wheeling, West Virginia (5 FM and 2 AM, including its heritage stations WWVA-AM and WOVK-FM); Jackson, Tennessee (2 FM/1 AM); Gadsden, Alabama (1 FM/1 AM); Asheville, North Carolina (1 FM/1 AM); Huntsville, Alabama (1 FM/2 AM); and Tuscaloosa, Alabama (2 FM/1 AM).

As previously indicated, Osborn Communications will maintain its corporate identity as an autonomous subsidiary, and will continue to operate under the direction of Mr. Osborn, who will maintain a substantial equity stake in the company.

Thomas O. Hicks, Chairman and Chief Executive Officer of Hicks Muse, said: "Osborn Communications adds another jewel to the crown in our buy- and-build initiative to develop the leading group of middle-market radio properties under the Capstar banner. We look forward to working with Frank Osborn and his colleagues at Osborn Communications."

R. Steven Hicks, Chairman and Chief Executive Officer of Capstar, said: "With the consummation of Capstar's acquisition of Osborn Communications, we have added to the already strong portfolio of radio stations we acquired from Commodore Media, Inc., in October 1996. In addition, while Commodore has focused on the Northeast, Osborn has radio station clusters in the Southeast, giving Capstar two regional operating companies."

Mr. Osborn said: "I am pleased to be joining the Capstar family. Together, with Capstar's substantial capital resources and its team of experienced broadcasters, we intend to achieve the pre-eminent position among radio groups focusing on mid-sized markets."

Bankers Trust Company acted as advisor to Hicks, Muse, Tate & Furst for the transaction, and Osborn was advised by Alex. Brown & Sons. Robert Chaisson was a broker in the transaction.

Hicks, Muse, Tate & Furst Incorporated, with offices in Dallas, New York, St. Louis and Mexico City, is a leading private investment firm, with more than 70 transactions completed or pending since 1989 having an aggregate value of approximately $19 billion.

CONTACT: Hicks Muse/Capstar

Roy Winnick

Kekst and Company

212-593-2655