Chancellor Media to be Renamed AMFM Inc.; Shareholder Meeting Date Set For July 13th to Vote on Name Change and Proposed Merger With Capstar.

DALLAS--(BUSINESS WIRE)--May 19, 1999--

AMFM Inc. Launches Three Internet Business Units

To Develop E-Commerce, Provide Streaming Media

and Invest in Internet Companies

AMFMi to Develop and Manage Local Web Portals For AMFM's

Radio Stations, Creating National, Affinity-based E-Commerce Network

AMFM.com to Serve as AMFM Inc.'s Online Broadcasting Entity, Providing

Streaming Media Services to AMFM and Creating and Managing

Internet-only Radio Stations

AMFM Equities to Develop Promotional Partnerships In Exchange

for Equity in Internet and New Media Concerns

Chancellor Media Corporation (AMFM Inc.) (Nasdaq:AMFM) today announced that it will change its name to AMFM Inc., subject to shareholder approval. Shareholders will vote on the name change as well as the proposed merger with Capstar Broadcasting Corporation (NYSE:CRB) on July 13, 1999. The Company also announced a broad-based Internet strategy intended to leverage the value of the Company's leading national radio station portfolio, proprietary content, advertiser relationships and 66 million weekly listeners.

The Company has formed three new business units: AMFM Interactive, Inc. (AMFMi), AMFM.com and AMFM Equities, which are intended to position AMFM's E-commerce web sites as highly trafficked Internet destinations, stream online broadcasts of AMFM's on-air programming and other media, and promote emerging Internet and new media concerns.

All of AMFM's Internet businesses report to R. Steven Hicks, president and chief executive officer of AMFM's New Media Group. Commenting on AMFM's Internet business strategy, Steve Hicks said, "AMFM's loyal weekly audience of 66 million listeners is our principal Internet asset. AMFM is redefining radio as a feedback-driven, user-controlled, value-sharing medium. The visual, interactive capabilities of the Internet will `close the loop' with radio audiences, transforming loyal but largely anonymous listeners into active members of communities and e-commerce buying clubs. Extending AMFM's brand to the Internet will also strengthen the affinity between on-air stations and their audiences, benefiting the traditional advertising revenue model. By managing these business units internally, we can protect and carefully nurture each of the extremely valuable 465 `brands' which comprise AMFM's radio portfolio. The formation today of three independent business units represents a unique opportunity to use the complementary nature of radio and the Internet to create an E-commerce, streaming media powerhouse."

Specific details of each new business unit follows:

AMFM Interactive, Inc. (AMFMi)

AMFMi, AMFM's consumer E-commerce business, will develop and manage a national network of local web portals, paired with local AMFM radio stations. AMFMi will create a "consumer-centric" network of affinity-based E-commerce destinations centered on music preferences and local activities.

AMFMi's trial launch is currently under way in Philadelphia and other selected markets. Over the balance of 1999, AMFMi's local portals will be integrated with AMFM's and Capstar's approximately 465 radio stations. Working with `best of breed' systems integrators and web site designers, and with AMFM.com, AMFMi will oversee the delivery of streaming-media, locally customized content and services, and a complete suite of E-commerce capabilities.

James E. de Castro, Chief Executive Officer of AMFM Radio Group commented, "The announcement today of our name change and Internet initiatives highlight the reincarnation of this company. The AMFM Inc. name underscores the Company's principal asset and source of cash flow - the largest and best operated portfolio of radio broadcasting assets in the country.

"AMFMi's approach is the perfect marriage of radio and the Internet. It will bring AMFM's large, well-defined, loyal radio audiences to individually designed Web sites that meet the needs, interests and preferences of each radio station audience. And it will help build each radio station's audience, hence advertising revenues, by giving its listeners powerful new reasons -- such as unparalleled depth of information, special deals for online listeners, membership in affinity-based buying clubs, the ability to instantly order recordings as they are broadcast, and the like -- to both log on and tune in."

AMFM.com

AMFM.com, AMFM Inc.'s online broadcasting company, will be responsible for streaming media for AMFM stations to AMFMi web sites and provide streaming services for media companies and other corporate clients. AMFM.com will also create and manage Internet-only stations, enhancing proprietary radio content with compatible audio and visual programming.

AMFM.com's primary sources of revenue will be from the sale of audio and video commercials and sponsorships, e-commerce revenue sharing with AMFMi and the sale of video conferencing, distance learning and other web-casting business services to media and corporate clients.

Steve Hicks said, "AMFM.com's goal is to become `The Destination' for internet broadcasting, providing streaming media services and functionality for AMFM stations and managing the transformation of radio into an integrated on-air/online medium."

AMFM Equities

AMFM Equities, the third leg of AMFM's Internet business strategy will allow AMFM to participate in the growth of selected Internet and new media companies. A bank of promotional commercial time comprised of radio inventory and promotional sponsorships will be exchanged for equity in promising companies whose value can be materially enhanced by AMFM's marketing assistance.

Steve Hicks said, "It is widely acknowledged that radio advertising is one of the most cost-effective means for promoting new Internet companies, driving site visitations and usage and building Internet brands. AMFM Equities allows AMFM Inc. an opportunity to leverage its radio and Internet presence to dramatically influence the success of promising Internet and new media ventures. Specifically, `.com' advertising has grown to comprise as much as 15% of on-the-air advertising in some markets, and there has been a direct correlation between such advertising and the success of these ventures."

Jimmy de Castro, summing up today's announcement said, "These Internet initiatives are consistent with AMFM's ongoing `top line' strategy which seeks to drive the organic growth of our broadcast franchises and create new revenue sources. This strategy has achieved tremendous success through entities such as the AMFM Radio Networks and Chancellor Marketing Group. AMFM.com, AMFMi, and AMFM Equities have the potential to become the fastest growing element in this strategy. We are confident that our approach, assets, management and partners will provide immediately tangible benefits to our stations and a separate opportunity for our shareholders to participate in the development of important Internet enterprises."

AMFM Inc. is a diversified media company consisting of AMFM Radio and Outdoor Group and the AMFM New Media Group, which includes Katz Media, the leading media representation firm. Reflecting announced transactions, AMFM Radio Group will be the nation's largest radio broadcasting entity with approximately 465 stations in 105 markets reaching a weekly listener base of 66 million people. AMFM Outdoor Group is the nation's fifth-largest outdoor advertising company, operating over 42,500 display faces nationwide. AMFM's Katz Media is the only full-service media representation firm in the United States serving multiple types of electronic media. Chancellor Marketing Group is a full-service, sales promotion firm developing integrated marketing programs for Fortune 1000 companies.

This news announcement contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Key risks are described in Chancellor's/AMFM's reports filed with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors, including economic changes and changes in the broadcasting industry generally and, accordingly, the Company's actual performance and results may vary from those stated herein and Chancellor/AMFM undertakes no obligation to update the information contained herein.