Chancellor Broadcasting Reports Record Quarterly Revenues and Broadcast Cash Flow.

DALLAS--(BUSINESS WIRE)--Aug. 4, 1997--

- Net Revenues Rise 64.5%; Broadcast Cash Flow Increases 72.7% -

Chancellor Broadcasting Company (CBCA:Nasdaq) today reported record financial results for the three and six month periods ended June 30, 1997.

For the three months ended June 30, 1997, consolidated net revenues increased 64.5% to $73.1 million from $44.4 million last year. Broadcast cash flow (defined as station operating income excluding depreciation, amortization, and corporate expenses) was $31.4 million for the second quarter of 1997, a 72.7% increase over $18.2 million in the corresponding period of 1996. The Company reported a second quarter net loss attributable to common stock of $16.9 million, or $0.89 per share, compared with a net loss attributable to common stock of $2.4 million, or $0.14 per share, for the 1996 period.

Commenting on the Company's record results, Steven Dinetz, President and Chief Executive Officer, said, "Chancellor's second quarter results reflect broad station operating improvements and the growth of our station portfolio including the addition of the Colfax and OmniAmerica station groups. Reflecting our growth initiatives and operating focus, broadcast cash flow margins rose to 43.0% for the second quarter of 1997 from 41.0% in 1996."

For the six months ended June 30, 1997, consolidated net revenues increased 84.0% to $128.9 million compared with $70.1 million in the first six months of 1996. Broadcast cash flow in the first half of 1997 rose 79.5% to $49.1 million, compared with $27.3 million in the corresponding period of 1996.

On a pro forma basis for the quarter ended June 30, 1997, the Company's consolidated net revenues were up 13.6% to $84.2 million, while the Company's consolidated broadcast cash flow increased 23.7% to $38.6 million, compared to the quarter ended June 30, 1996. On a year to date basis, pro forma net revenues increased 13.6%, broadcast cash flow increased 25.9% and broadcast cash flow margins improved to 42.0% up from 37.9% last year.

Mr. Dinetz added, "Chancellor's double digit same station growth exceeded industry averages reflecting continued operating improvements in many of our markets.

"Our forward focus is on completing the merger with Evergreen Media, forming Chancellor Media Corporation. This organization will possess a broad group of highly rated stations diversified both geographically and by format. We are committed to building further value for our stockholders through growing and enhancing the operating performance of Chancellor Media, and this effort will be led by an experienced management team comprised of Chancellor Broadcasting, Evergreen Media, Viacom and Gannett radio executives." Upon consummation of all pending acquisitions, excluding the previously announced merger with Evergreen Media, Chancellor Broadcasting will own and operate 52 stations in 14 markets. Chancellor Media Corporation will be formed by the currently pending merger of Evergreen Media Corporation and Chancellor Broadcasting Company, as well as radio properties acquired from Viacom Inc. and the acquisition of five radio stations from Pacific and Southern Company, Inc., a wholly-owned subsidiary of Gannett Company, Inc. Upon consummation of all announced transactions, Chancellor Media will own and operate 99 radio stations in 21 of the nation's largest markets. -0-

        CHANCELLOR BROADCASTING COMPANY  AND SUBSIDIARIES
                           (unaudited)
                         (in thousands)

                          Three Months Ended      Six Months Ended
                              June 30,               June 30,
                       1997     1996 %Change   1997       1996 %Change
Historical:
Net revenues         $73,088 $ 44,426  64.5% $128,942  $ 70,068  84.0%
Broadcast cash flow   31,423   18,192  72.7%   49,090    27,343  79.5%
Broadcast cash flow
 margin                42.99%   40.95%  4.9%    38.07%    39.02% (2.5%)

Pro Forma:
Net revenues         $84,182 $ 74,089  13.6% $150,194  $132,252  13.6%
Broadcast cash flow   38,647   31,239  23.7%   63,026    50,046  25.9%
Broadcast cash flow
 margin                45.90%   42.16%  8.9%    41.96%    37.85% 10.9%
-0-
           CHANCELLOR BROADCASTING COMPANY AND SUBSIDIARIES
              Consolidated Statements Of Operations
                           (unaudited)
              (in thousands, except per share data)

                            Three Months Ended  Six Months Ended
                                June 30,             June 30,
                              1997      1996      1997      1996

Net revenues                $73,088   $44,426  $128,942   $70,068

Station operating expenses
 excluding depreciation
 and amortization            41,665    26,234    79,852    42,725

Broadcast cash flow          31,423    18,192    49,090    27,343

Depreciation and
 amortization                 8,605     5,148    16,714     9,675

Corporate general &
 administrative expenses      2,222       832     3,934     1,839

Merger expense                  459        --     2,515        --

Stock option compensation       950       950     1,900     1,900

Operating income             19,187    11,262    24,027    13,929

Interest expense             12,488     9,680    23,908    17,327

Other, net                       25        92    (1,607)       98

Net income (loss) before
 income taxes and
 extraordinary item           6,674     1,490     1,726    (3,496)

Income tax expense            3,727       662     3,327     1,601

Dividends and accretion
 on preferred stock of
 subsidiary                   9,987     3,183    18,122     4,843

Loss before extraordinary
 loss                        (7,040)   (2,355)  (19,723)   (9,940)

Extraordinary loss on early
 extinguishment of debt,
 net of income tax benefit    7,926        --    10,675     4,646

Net loss                    (14,966)   (2,355)  (30,398)  (14,586)

Loss on repurchase of
 preferred stock                 --        --        --    16,570

Preferred dividends           1,925        --     3,379        --

Net loss attributable to
 common stock              $(16,891)  $(2,355) $(33,777) $(31,156)
Net loss per common share  $  (0.89)  $ (0.14) $  (1.79) $  (2.05)

Weighted average common
  shares outstanding         18,988    17,242    18,855    15,217

CONTACT: Eric W. Neumann  Joseph N. Jaffoni

Senior Vice President of Finance David C. Collins

Chancellor Broadcasting Company Jaffoni & Collins Incorporated

972/239-6220 212/505-3015 or

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