Capstar Broadcasting Partners to acquire Community Pacific Broadcasting Company.

DALLAS, AUSTIN and MONTEREY, Calif.--(BUSINESS WIRE)--Jan. 7, 1997

-- Further Develops Mid-Market Radio Company Formed in May 1996

by Hicks, Muse, Tate & Furst and R. Steven Hicks --

-- Community Pacific CEO David Benjamin and Industry Veteran Dex Allen

To Join Capstar as Heads of Capstar's Newly Formed

West Coast Subsidiary --

Hicks, Muse, Tate & Furst Incorporated, of Dallas, a leading private investment firm, and Capstar Broadcasting Partners, Inc., of Austin, a radio investment group formed last year by Hicks Muse and R. Steven Hicks, Capstar's chairman and chief executive officer, today announced the signing of a definitive agreement under which Capstar will acquire Community Pacific Broadcasting Company L.P., of Monterey, Calif. The transaction, financial terms of which were not disclosed, brings completed and announced Capstar acquisitions since it was formed in May 1996 to 70 stations and to a total capital value, including debt and equity, of more than $375 million.

In addition, Capstar said that upon completion of the transaction, which is expected to occur in the fourth quarter of 1997, Community Pacific Chief Executive Officer David Benjamin will become Chairman and Chief Executive Officer of Capstar's newly formed West Coast subsidiary. Effective immediately, Dex Allen, also a highly regarded radio executive, most recently Managing Partner of Commonwealth Broadcasting, L.P., will become the West Coast group's President and Chief Operating Officer. Working closely with Capstar Chairman/CEO R. Steven Hicks, Messrs. Benjamin and Allen and their colleagues, consistent with Capstar's existing investment strategy, will pursue middle-market radio station acquisitions in the western and midwestern United States, and will then operate the acquired properties.

Community Pacific currently owns and operates a total of 11 radio stations (6 FM and 5 AM) in mid-sized markets located primarily in the western United States, including Modesto/Stockton, California, Des Moines, Iowa, and Anchorage, Alaska. Capstar and Community Pacific have also agreed to enter into a Local Marketing Agreement, which will go into effect upon expiration of the applicable Hart-Scott-Rodino waiting period.

Thomas O. Hicks, Chairman and Chief Executive Officer of Hicks Muse, said: "We continue to actively pursue our buy-and-build strategy in the rapidly consolidating radio broadcasting industry, and are very pleased at the progress Capstar is making in assembling an outstanding group of middle-market radio properties and operating management."

R. Steven Hicks, Chairman and CEO of Capstar Broadcasting, said: "We are delighted that David Benjamin and Dex Allen will be joining the Capstar team. Between the two of them, they will bring to Capstar more than forty years of radio broadcasting experience. They are well-respected in the industry and we look forward to working with them to build out and operate a group of middle-market radio properties in the West and Midwest."

David Benjamin, Chief Executive Officer of Community Pacific, and Dex Allen said: "We are excited to be joining Capstar and to be heading up its West Coast effort. With the Community Pacific properties as a platform, we look forward to expanding into other attractive West Coast and Midwest markets."

The broker on the transaction was Media Venture Partners.

Since its formation in 1989, Hicks, Muse, Tate & Furst Incorporated has completed or currently has pending more than 60 transactions with an aggregate capital value in excess of $10 billion. Headquartered in Dallas, the firm also has offices in New York, St. Louis and Mexico City.

CONTACT: Kekst and Company

Roy Winnick, 212/593-2655