Hearst-Argyle Television Announces Results for the Third Quarter and Nine Months.

NEW YORK--(BUSINESS WIRE)--Nov. 4, 1998--

Third Quarter Pro Forma Operating Cash Flow Up 9%; Pro Forma

After-Tax Cash Flow Per Share of $0.38; Pro Forma Earnings Per

Share of $0.21

Additional Pro Forma Results Are Included for Operations of Pulitzer Broadcast Group, Kelly Broadcasting Sacramento Stations

Hearst-Argyle Television, Inc. (NYSE: HTV) today announced operating results for the third quarter and nine months ended September 30, 1998, on a GAAP reported basis as well as on a pro forma, same-station basis. The Company also announced additional pro forma results for the three months and year-to-date as if the broadcasting group of Pulitzer Publishing, as well as the Sacramento stations of Kelly Broadcasting which Hearst-Argyle recently announced it would acquire, were part of the Company at the beginning of each period.

The following tables summarize the Company's results.

Hearst-Argyle Only:

Three Months Ended Sept. 30

($ in millions, except per share data)

Pro Forma

GAAP - Reported Same-station

1997** 1998 Change 1997 1998 Change

Total Revenues $ 77.7 $ 95.0 22.3 % $ 90.5 $ 95.0 5.0 %

Broadcast Cash Flow* $ 31.0 $ 40.7 31.3 % $ 37.5 $ 40.7 8.5 %

Operating Cash Flow* $ 29.0 $ 37.6 29.7 % $ 34.5 $ 37.6 9.0 %

After-Tax Cash Flow* $ 14.8 $ 19.9 34.4 % $ 18.2 $ 20.4 12.1 %

Earnings per Share $ 0.20 $ 0.20 -- $ 0.17 $ 0.21 23.5 %

*Definitions for Broadcast Cash Flow, Operating Cash Flow and After-tax Cash Flow are provided in the Notes to the accompanying financial tables.

*

he Company will present the "pre-merger" (prior to September
1, 1997 -- the effective date of the merger of Argyle Television, Inc.
and the broadcast group of The Hearst Corporation) financial results
of the Hearst Broadcast Group rather than that of Argyle Television,
Inc., which was the legal acquiror and registrant at the time. (See
"Status of Pending Transactions.")


                             Nine Months Ended Sept. 30
                     ($ in millions, except per share data)

                                                         Pro Forma
                         GAAP - Reported            Same-station

                       1997**   1998   Change    1997   1998   Change

Total Revenues         $221.3  $292.0  31.9 %   $275.8  $292.1   5.9 %

Broadcast Cash Flow*   $ 94.9  $131.8  38.9 %   $121.3  $131.5   8.4 %

Operating Cash Flow*   $ 88.3  $122.1  38.3 %   $111.6  $121.9   9.2 %

After-Tax Cash Flow*   $ 45.7  $ 64.7  41.6 %   $ 59.1  $ 66.3  12.2 %

Earnings per Share     $ 0.75  $ 0.48 (36.0)%   $ 0.60  $ 0.69  15.0 %

*    Definitions for Broadcast Cash Flow, Operating Cash Flow and
     After-tax Cash Flow are provided in the Notes to the accompanying
     financial tables.

**   The Company will present the "pre-merger" ( prior to September 1,
     1997 -- the effective date of the merger of Argyle Television,
     Inc. and the broadcast group of The Hearst Corporation) financial
     results of the Hearst Broadcast Group rather than that of Argyle
     Television, Inc., which was the legal acquiror and registrant at
     the time. (See "Status of Pending Transactions.")

Hearst-Argyle Pro Forma Including Pulitzer, Kelly/Sacramento Stations:
                  ($ in millions, except per share data)

                       3 Mos. Ended Sept. 30     9 Mos. Ended Sept. 30

                       1997     1998   Change      1997   1998  Change
Total Revenues        $162.3   $167.9   3.5 %    $495.7  $524.6  5.8 %

Broadcast Cash Flow*  $ 67.4   $ 72.7   7.9 %    $218.3  $239.7  9.8 %

Operating Cash Flow*  $ 63.4   $ 68.8   8.5 %    $206.4  $227.8 10.4 %

After-Tax Cash Flow*  $ 33.1   $ 35.0   5.7 %    $106.0  $116.8 10.2 %

Earnings per Share    $ 0.01   $ 0.03   200 %    $ 0.11  $ 0.22  100 %

   *Definitions for Broadcast Cash Flow, Operating Cash Flow and
After-tax Cash Flow are provided in the Notes to the accompanying
financial tables.


    The Company additionally announced that it has obtained
commitments from leading institutional investors to purchase $450
million of senior notes to be issued by the Company. The notes will
have a maturity of 12 years, with an average life of 10 years, and
will bear interest at 7.18% per annum. The proceeds of this financing,
expected to fund in late December, will be used to fund in part the
Pulitzer and Kelly transactions.
    "The pro forma results indicate that the Pulitzer and Kelly
transactions are not dilutive to our third quarter after-tax cash flow
per share, and are accretive to the nine-months results by about three
cents on a fully diluted-share basis," noted Bob Marbut, chairman and
co-chief executive officer. "These calculations are based on
Hearst-Argyle shares issued to Pulitzer shareholders at the bottom of
our trading `collar.' Obviously, if fewer shares were issued, the
transactions would become even more accretive."
    "We think Hearst-Argyle's results this quarter provide evidence
that the strongest local media franchises are best equipped to weather
a storm," added John G. Conomikes, president and co-chief executive
officer. "Our stations, many of which lead their markets, continued to
outperform the competition in terms of ratings and in terms of
operating results. And the pattern of improvement at our newer and
smaller stations is also continuing.
    "Our ad sales pacing for the fourth quarter continues at around
3% to 4%, which is similar to the pacing experienced by the Pulitzer
and Kelly stations," Conomikes added. "Our pacing is led by the more
buoyant performance in our local markets, while some of our stronger
ad categories on the national front right now include
telecommunications and pharmaceuticals. We are finding that
advertisers, while still committed to marketing their brands through
the most effective media, are making their buying decisions later in
the cycle than before. This was clearly the case for us in the third
quarter, with our actual revenue results finishing ahead of our sales
pacing early in the quarter."
    "Our stations continue to perform well in local news and
syndicated programming time periods, and we've benefited from strong
political advertising due to our leading news ratings," added David J.
Barrett, executive vice president and chief operating officer. "ABC's
prime time performance is showing signs of improvement, particularly
in the 18-49 adult demographic, and we're benefiting from multiple
Monday Night Football games featuring local teams. We're also
optimistic that ABC's November `sweeps' results will further reflect
the improvement shown in October. These trends should help us to
remain strongly competitive in our nine ABC markets."
    "We are currently in negotiations to consolidate our national
advertising business with one rep firm," Conomikes added, "and we are
confident of arriving at an agreement within the next six months. This
agreement should enhance the effectiveness and focus of our national
sales efforts and should result in measurable savings, although it is
premature to forecast the level of cost reduction we'll achieve."
    As of November 3, 1998, the Company had repurchased 776,764
shares of its stock, at an average price of $33.12 per share, for a
total consideration of approximately $25.7 million, under its
previously announced share repurchase program. Total common shares
outstanding were reduced to approximately 53.1 million; Series A
shares outstanding are approximately 11.8 million.
    "Within our first full year as Hearst-Argyle Television," Marbut
noted, "we have followed through on a number of commitments we made at
the outset:

--       We set goals of improving ratings and overall consolidated
         margins. With the strides that have been made on that front,
         our companywide BCF margin has steadily improved, as have key
         daypart ratings at a number of stations.

--       We set a goal of reaching 20% of U.S. television households
         within three to five years. With the Pulitzer and Kelly
         stations, we'll be at 17.5%.

--       We sought to improve our stock's trading liquidity. With that
         in mind, we moved to the New York Stock Exchange and
         structured the planned acquisition of Pulitzer Broadcasting
         to increase our float appreciably.

    "We are very optimistic about our business, especially for the
year 2000 and over the long run as this industry continues to
consolidate," Marbut added. "We believe that our first-year
accomplishments position us strongly for the future and demonstrate
that Hearst-Argyle has become a Top Tier consolidator."


Status of Pending Transactions

    In May, the Company announced that it would acquire the nine
television stations and five radio stations of Pulitzer Publishing. In
August, the Company announced that it would acquire KCRA-TV and a
time-brokerage agreement for KQCA-TV, both in Sacramento, CA, from
Kelly Broadcasting.
    The Pulitzer transaction is subject to regulatory and shareholder
approval and certain other conditions. The Hart-Scott-Rodino clearance
has been received, and Pulitzer has also received a favorable letter
ruling from the Internal Revenue Service regarding the tax-free nature
of the spin-off of its newspaper operations to its current
stockholders, the receipt of which was a condition to the closing of
the Pulitzer transaction. The Company has filed preliminary proxy
materials on a confidential basis with the Securities and Exchange
Commission in connection with the stockholders' meeting to consider
the Pulitzer transaction.
    Hearst-Argyle has received the SEC's comments on the proxy
materials and is in the process of responding to these comments. In
response to one of the comments received from the SEC, the Company
will present the "pre-merger" (prior to September 1, 1997, which was
the effective date of the merger of Argyle Television, Inc. and the
broadcast group of The Hearst Corporation) financial results of the
Hearst Broadcast Group (which were included in all of the Company's
1933 Act filings) rather than that of Argyle Television, Inc., which
was the legal acquiror and registrant at the time. This form of
"pre-merger" presentation has no impact on any "pre-merger" financial
results of either Argyle Television, Inc. or the Hearst Broadcast
Group, nor on any pro forma financial results, nor on any
"post-merger" GAAP financial results of the Company.
    The Company anticipates that its stockholders' meeting to
consider the Pulitzer transaction will be held in January 1999, with a
closing shortly following the meeting.
    The Kelly transaction is subject to regulatory approval and
certain other conditions. The Hart-Scott-Rodino clearance has been
received, and the Company anticipates that this transaction will close
in early January 1999.

Recent Operating Accomplishments at Various Hearst-Argyle Television
Units


    WCVB-TV, Boston, an ABC affiliate, is now digital. Boston's first
HDTV station and one of the first ABC affiliates upgraded to HDTV,
WCVB hosted an HDTV simulcast of the historic NASA shuttle launch at
Boston's Museum of Science. In a survey conducted at the event by
MediaCom Worldwide, a unit of Grey Advertising, 58% of the 400
respondents said they felt the "visual experience of HDTV was
spectacular"; 51% said they "definitely paid more attention to the
screen than they do normally"; and nearly one-third (27%) said they
would be more likely to watch advertising broadcast via HDTV. WCVB
also continued to lead the market in all key newscasts, and its public
affairs program, Chronicle, defeated the popular Jeopardy by a
significant margin in the July ratings period for the first time in
the locally produced show's 16-year history. Another locally produced
WCVB special, The Healthbeat Project: Facing Depression, was second
only to a special episode of Third Rock from the Sun in the 9:30 p.m.
time period; the station capitalized further on its Healthbeat
specials with a local children's fair attended by Boston's mayor.
WCVB's ratings improved in other time periods, and it won the 10 a.m.
to 1 p.m. weekday slot. For the eighth year in a row, WCVB's heavily
watched POPS Goes the Fourth July 4 telecast featuring the Boston Pops
Orchestra was simulcast on the A&E Network, in which The Hearst
Corporation holds an ownership interest. WCVB achieved a 23.9
rating/36 share for the September New England Patriots game against
the Denver Broncos on Monday Night Football, ranking WCVB behind only
ABC's Denver affiliate.
    WTAE-TV, Pittsburgh, an ABC affiliate, celebrated its 40th
anniversary in September with a fireworks display and an hour-long,
prime-time special. In October WTAE-TV and two local newspapers
secured a judicial precedent. For the first time in western
Pennsylvania, routine video recordings made in police cruisers were
ruled to be part of the public record allowing Pittsburgh viewers to
see tape depicting alleged police misconduct. WTAE was the
third-highest ratings-metered station in the entire ABC network for
the September premiere of ABC's Wednesday edition of 20/20, and the
second-highest for the fall premiere of the show's Friday edition. For
the October 26 Steelers-Chiefs game on Monday Night Football, WTAE
scored a 42.9/58.
   WBAL-TV, Baltimore, an NBC affiliate, in July was No.1 in the
adults 25-54 demographic in the 5 p.m., 6 p.m. and 11 p.m. newscasts,
and was the only station to post year-to-year gains at 6 a.m. WBAL's
50th Anniversary celebration included a successful one-hour primetime
special co-hosted by Richard Belzer from Homicide, while NBC soap
stars joined WBAL for a "Soap Opera Gala" raising more than $250,000
for the Children's Cancer Association. When WBAL co-produced a special
promoting the grand opening of Planet Hollywood in the Baltimore Inner
Harbor, 60,000 people jammed the waterfront for the celebration.
WBAL-TV launched the only regularly scheduled broadcast on the
region's high school athletes and, in October, provided the only
helicopter news coverage of a chemical explosion at Baltimore's Wagner
Point.
    WLWT-TV, Cincinnati, an NBC affiliate, which has broken ground on
its new, all-digital facility, expanded its No.1-rated early morning
news program, News 5 Today, to two hours. In September, WLWT joined
with MSNBC to simulcast the cable network's Leadership and America
"town meeting" program from Cincinnati's Aronoff Center for the Arts,
marking NBC's first time for a cable/affiliate prime time partnership.
The station received four awards, including two first-place honors, in
local Society of Professional Journalists competition. In July, WLWT's
early morning and late-night newscasts ranked No.1 in adults 18-49,
and its 6 p.m. newscast tied for No.1 in adults 25-54.
    KMBC-TV, Kansas City, MO, an ABC affiliate, in July maintained
its strong market leadership, winning all newscasts, and tying for
No.1 in prime time. In addition to numerous area journalism awards,
KMBC received 24 Emmy nominations. KMBC's local programming included
Ask The Candidates, 90-second mini-programs providing political
candidates 30 seconds to respond to questions posed by KMBC
anchor/hosts; A Day At the K, taking viewers behind-the-scenes at
Kauffman Stadium for a day in the life of Royals baseball; K.C. Wild,
a series of programs with the Kansas City Zoo; and Tailgate Specials
prior to Kansas City Chiefs games on the station. KMBC was the second
highest rated among metered ABC stations for the fall premiere of the
Wednesday edition of 20/20. For the October 26 Steelers-Chiefs game on
Monday Night Football, KMBC scored a 42.3/59.
    WISN-TV, Milwaukee, an ABC affiliate, cemented its position as
Milwaukee's leading football station, signing Green Bay Packers
quarterback Brett Favre and fellow Packers for exclusive one-on-one
interviews during the season on the station's 6 p.m. and 10 p.m.
newscasts. For their inaugural 1998 Monday Night Football game, the
Green Bay Packers helped WISN to lead all ABC stations with a 48.9
rating/66 share. WISN also was the third highest rated among metered
ABC stations for the fall premiere of the Sunday edition of 20/20. The
station became the first-ever media sponsor of the Briggs & Stratton
Run & Walk to benefit Milwaukee's Children's Hospital.
    KOCO-TV, Oklahoma City, an ABC affiliate, in August became the
first TV station in Oklahoma, and one of the first nationwide, to
offer a new technology that immediately transmits severe weather
warnings directly to individuals through their pagers and/or computers
via e-mail. The free service, Weather Warn 5, tracks bulletins from
the National Weather Service Storm Prediction Center and can be
received by signing up through KOCO's website (kocotv.com) or by
contacting various pager services.
    KITV-TV, Honolulu, an ABC affiliate and America's first
commercially licensed digital television station, carried ABC's
November 1 telecast of 101 Dalmations in HDTV. KITV began a series of
programs recognizing accomplishments of Hawaii's Twelve Most
Remarkable Women of the Twentieth Century. The series will air through
1999.
    WAPT-TV, Jackson, MS, an ABC affiliate, in September provided 72
continuous hours of Hurricane Georges coverage including hourly
updates and special newscasts. The station also joined with the
Salvation Army to raise more than 110,000 pounds of food and personal
care products for hurricane victims. Capitalizing on area interest in
college football, WAPT hosted Mississippi Kickoff '98, a live,
hour-long statewide examination of the sport.
    WPTZ-TV/WNNE-TV, serving Plattsburgh, N.Y. and Burlington, VT, in
August -- within its first two months under Hearst-Argyle ownership
added two Sunday newscasts, at 6 p.m. and 11 p.m., and was first in
the market to do so.
    KSBW-TV, the NBC affiliate serving Monterey-Salinas, CA, provided
the videotaping of area children -- producing over 400 tapes --
helping combat the problem of missing children and furthering its
community presence. The station helped generate more than $4.5 million
in charitable funds during the year through its involvement in more
than 100 area charities.
    WPBF-TV, the Hearst-Argyle managed ABC affiliate in West Palm
Beach, was the only area station with a permanent live hook-up at
Hurricane Georges headquarters in Miami, adding a phone bank to its
on-air coverage. WPBF also ran the area's first televised debate
between the gubernatorial candidates in October. The station achieved
a 22.3/33 rating/share for the recent Monday Night Football telecast
of a Miami-Jacksonville game. WPBF, acquired by The Hearst Corporation
in 1997, was praised recently in a local TV column as having
"new-found fire in its belly."
    Hearst-Argyle Television Productions' hit syndicated show
Rebecca's Garden is growing in visibility; Host Rebecca Kolls has made
several appearances on NBC's Today show to offer gardening tips, and
is scheduled to co-host the 1999 Rose Parade coverage on Home & Garden
Television. Living Better With Carrie Wiatt, the unit's new lifestyle
program, debuted this fall on more than 125 stations, or about 85% of
the country.


Recent Operating Accomplishments at Pulitzer Television Stations

    WESH-TV, Orlando, FL, an NBC affiliate, News Channel 2 became the
No.1 11:00 p.m. newscast in the July ratings periods, and the station
began to show growth in the afternoons after a strategic
re-positioning of programming.
    WYFF-TV, Greenville, SC, an NBC affiliate, continued its news
leadership by winning all of the major newscasts in the July sweep
period. For the second time in as many years, News 4 took home four
Emmys in the Southern Regional Emmy competition in Atlanta. WYFF also
won the 1998 NAB (medium market) Service to Children Television Award
for its "For The Children" campaign.
    WDSU-TV, New Orleans, LA, an NBC affiliate, provided virtually
around-the-clock storm coverage, tracking Hurricane Earl; Tropical
Storm Francis, which WDSU News chased from Biloxi, Ms. all the way to
the Texas border; and finally, Hurricane Georges, which threatened to
collide with New Orleans before taking an 11th-hour turn northward.
    WGAL-TV, Lancaster, PA, an NBC affiliate, in the July Nielsen
results increased its lead over its primary news competitor. All News
8 newscasts are No.1 in their respective time periods, reaching more
viewers than the combined efforts of the competition. WGAL is a strong
number one in daytime, early and late fringe and prime, showing the
most growth in the key prime access time period, with its broadcasts
of ET tying Wheel of Fortune and beating Frazier and its broadcasts of
Extra now tying Seinfeld. WGAL conducted a "weather watcher"
recruiting lunch for more than 70 volunteers, sponsored a street fair
in downtown Lancaster, and kicked off the second year of Football
Friday, its high school football highlights program. WGAL had 14
nominations -- almost as many as all its market competitors combined
-- from the Mid-Atlantic Emmy Award Chapter.
    WXII-TV, Winston-Salem, NC, an NBC affiliate, provided viewers --
as well as listeners to its radio station WXII-AM -- with more than 30
hours of continuous news coverage of Hurricane Bonnie and a fire at an
RJR Tobacco warehouse that burned to the ground in the heart of the
downtown Winston-Salem business district. In the second metered book,
WXII's 11pm Monday-Friday newscast was No.1, continuing leadership the
station established in May. The National Crimestoppers Organization,
The Local American Red Cross, and the North Carolina Mental Health
Association all publicly recognized WXII's public service efforts.
    KOAT-TV, Albuquerque, NM, is one of ABC's strongest affiliates
nationally. Among all of ABC's top 50 markets, KOAT's late news ranked
fourth in household share and sixth in adults 25-54 in July. KOAT was
recently honored with a Rocky Mountain Emmy Award for a "Target 7"
investigation, "Disorder In The Court," and also received a nomination
for its highly successful community outreach campaign, "New Mexico's
Children First."
    WLKY-TV, Louisville, KY, a CBS affiliate, took over a commanding
second place in local news in the July Nielsen ratings book at noon,
five, and 11 p.m. and edged closer to the onetime dominant local news
station in the market, WHAS. Anchor/reporter John Boel won three
regional Emmys for his reporting. He is the most honored reporter in
Louisville over the past five years. The station built and put on the
air a new news set and is concluding construction of its building
expansion.
    KCCI-TV, Des Moines, IA, a CBS affiliate, in July had its best
ratings book so far this decade. The station won all newscast time
periods with more viewers than the two competing news stations
combined. Late news scored its biggest margin of victory since 1989,
with a 25 rating/46 share compared to the nearest competitor's 17/30.
KCCI also won the 25-54 demo in all newscasts and won the 18-49 demo
in all but one newscast. KCCI's late news is the highest rated among
all CBS affiliates.
    KETV-TV, Omaha, NE, an ABC affiliate, recently raised $10,000 to
provide underprivileged children with back-to-school supplies by
selling over 2,200 Italian cookbooks written and illustrated by news
anchor Julie Cornell. The benefit earned Cornell recognition as
"Humanitarian of the Year" by the Sons of Italy organization.

Recent Operating Accomplishments at Kelly Stations

    KCRA-TV, Sacramento/Stockton/Modesto, an NBC affiliate, held a
commanding lead in the July ratings, placing No.1 in every news
category while delivering eight of the top 10 regularly scheduled
prime time programs. Its 6-7a.m. Sunrise News delivered a 57 in-market
household share; its 5p.m. and 6p.m. newscasts widely surpassed the
competition with a 29 share and a 25 share, respectively; and its
6:30p.m. newscast was up two household share points from both July
1997 and May 1998. The KCRA news department also produced three
installments of Voices of California, an hour-long, audience
participation program, hosted by KCRA news anchors, addressing topics
such as education and health care.
    KQCA-TV, Sacramento/Stockton/Modesto, a WB affiliate for which
KCRA provides programming services under a time brokerage agreement,
overindexed the WB average in prime time in the July 1998 ratings
period in several key demographics. The station has added a number of
popular syndicated shows to its fall lineup, and its September
household rating and share grew 20% and 25%, respectively, over
September 1997.

Recent Radio Accomplishments

    WBAL-AM won eight first place awards and five second place awards
in the Maryland Excellence in Journalism Awards competition sponsored
by the Society of Professional Journalists. WBAL was Baltimore's
exclusive play-by-play radio provider of Major League Baseball's
divisional playoffs, league championships and the World Series.
WIYY-FM 98 Rock, in collaboration with area businesses, collected
1,020 units of blood in its 13th annual blood drive for Red Cross,
ahead of its goal of 980 units.
    Hearst-Argyle Television, Inc. owns and/or manages 15
network-affiliated television stations, and manages two radio
stations, in geographically diverse U.S. markets. The Company's
television stations reach approximately 11% of U.S. TV households,
comprising the fourth largest non-network owned television station
group in the United States. In May, the Company announced that it
would acquire the nine television and five radio stations of Pulitzer
Publishing and, in August, KCRA-TV and a time brokerage agreement for
KQCA-TV, both in Sacramento, Calif., from Kelly Broadcasting Co. The
two transactions would extend Hearst-Argyle's U.S. TV household
coverage to about 17.5%, making it one of the nation's two largest
independent TV station groups. Subject to regulatory and shareholder
approvals and certain other conditions, the Pulitzer and Sacramento
transactions are expected to close in the first quarter of 1999.
Hearst-Argyle trades on the New York Stock Exchange under the symbol
"HTV."

    This news release contains forward-looking statements that are
subject to risks and uncertainties. Forward looking statements include
the information concerning the Company's advertising sales "pacing,"
and those preceded by, followed by, or that include the words
"believes," "expects," "anticipates," "could," or similar expressions.
For these statements, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. The following important
factors, among them, could affect the future results of the Company
and could cause those results to differ materially from those
expressed in each forward-looking statement: material adverse changes
in economic conditions in the markets served by the Company; future
regulatory actions and conditions in the television stations'
operating areas; and competition from others in the broadcast
television markets served by the business.

         Financial results and related notes follow.
-0-

Hearst-Argyle Television, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

Nine Months Ended Three Months Ended

September 30 September 30

1997 (1) 1998 (2) 1997(1) 1998(2)

(In thousands, except per share data)

Total revenues $77,730 $95,045 $221,296 $292,010

Station operating

expenses 36,323 43,647 96,919 127,595 Amortization of program

rights 10,149 10,358 29,201 32,027 Depreciation and

amortization 5,504 9,037 13,694 26,678

Station operating income  25,754 32,003 81,482 105,710

Corporate general and

administrative expenses 2,079 3,065 6,546 9,619

Operating income 23,675 28,938 74,936 96,091

Interest expense, net 8,039 10,151 20,524 29,978

Income before income taxes

and extraordinary item 15,636 18,787 54,412 66,113

Income taxes 6,308 7,882 22,362 28,111

Income before

extraordinary item 9,328 10,905 32,050 38,002

Extraordinary item, loss

on early retirement of

debt, net of income tax

benefit -- (49) -- (10,826)

Net income 9,328 10,856 32,050 27,176

Less preferred stock

dividends (3) (355) (355) (355) (1,066)

Income applicable to

common stockholders $8,973 $10,501 $31,695 $26,110

Income per common share

- basic

Before extraordinary

item $0.20 $0.20 $0.75 $0.68

Extraordinary item -- -- -- (0.20)

Net income $0.20 $0.20 $0.75 $0.48

Number of common shares

used in the

calculation(4) 43,998 53,409 42,208 53,678

Income per common share

- diluted

Before extraordinary

item $0.20 $0.20 $0.75 $0.68

Extraordinary item -- -- -- (0.20)

Net income $0.20 $0.20 $0.75 $0.48

Number of common shares

used in the

calculation(5) 44,043 53,690 42,223 53,943

Supplemental Financial

Data:

Broadcast cash flow(6) $31,035 $40,681 $94,897 $131,762 Broadcast cash flow

margin 39.9% 42.8% 42.9% 45.1% Operating cash flow(7) $28,956 $37,616 $88,351 $122,143 Operating cash flow

margin 37.3% 39.6% 39.9% 41.8% After-tax cash flow(8) $14,832 $19,942 $45,744 $64,680 Program payments $10,372 $10,717 $29,480 $32,653

See notes on the following page.

Notes to Condensed Consolidated Statements of Operations

(1) Includes results from: (i) WCVB, WTAE, WBAL, WISN, KMBC and WDTN

for the entire period presented; (ii) WAPT, KITV, the Arkansas

Stations, WLWT, KOCO and the Company's share of the Clear Channel

Venture (WNAC/WPRI) for September only; and, (iii) fees derived

by the Company from the Managed Stations for September only.

(2) Includes results from: (i) WAPT, KITV, the Arkansas Stations,

WLWT, KOCO, WCVB, WTAE, WBAL, WISN and KMBC for the entire period

presented; (ii) fees derived by the Company from the Managed

Stations for the entire period presented; (iii) WDTN and the

Company's share of the Clear Channel Venture (WNAC/WPRI) from

January 1 through May 31; and, (iv) KSBW and WPTZ/WNNE (the STC

Swap) for June through September.

(3) Reflects preferred stock dividends relating to the preferred

stock issued in conjunction with the acquisition of the Arkansas

Stations. The dividend calculation is shown here for purposes of

calculating earnings per common share.

(4) Basic income per common share uses the weighted average number of

shares outstanding for the period presented, in accordance with

FASB Statement No. 128. The weighted average number of shares for

the 1997 periods have been revised to reflect the shares issued

to The Hearst Corporation in the merger of Argyle Television,

Inc. and the Hearst Broadcast Group retroactively to January 1,

1997.

(5) Diluted income per common share uses the weighted average number

of shares outstanding for the period presented plus the effect of

the assumed exercise of all dilutive stock options outstanding

during the period presented in accordance with FASB Statement No.

128.

(6) Broadcast cash flow is defined as station operating income, plus

depreciation and amortization, plus amortization of program

rights minus program payments. Broadcast cash flow is presented

here not as a measure of operating results and does not purport

to represent cash provided by operating activities. Broadcast

cash flow should not be considered in isolation or as a

substitute for measures of performance prepared in accordance

with generally accepted accounting principles.

(7) Operating cash flow is defined as operating income, plus

depreciation and amortization, plus amortization of program

rights, minus program payments plus non-cash compensation

expense. Operating cash flow is presented here not as a measure

of operating results, but rather as a measure of debt service

ability. Operating cash flow does not purport to represent cash

provided by operating activities and should not be considered in

isolation or as a substitute for measures of performance prepared

in accordance with generally accepted accounting principles.

(8) After-tax cash flow is defined as income (loss) before

extraordinary item plus depreciation and amortization (does not

give effect to deferred income taxes.) After-tax cash flow does

not present a measure of operating results and does not purport

to represent cash provided by operating activities. After-tax

cash flow should not be considered in isolation or as a

substitute for measures of performance prepared in in accordance

with generally accepted accounting principles. This measure may

not be comparable to similarly titled measures used by other

companies.

Hearst-Argyle Television, Inc.

Pro Forma Combined Condensed Statements of Operations

(Excluding the Pulitzer and Kelly Transactions)

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

1997 1998 1997 1998

(In thousands, except per share data)

Total revenues $ 90,508 $ 95,045 $275,779 $292,061 Station operating

expenses (1) 42,332 43,647 123,477 128,498 Amortization of program

rights 10,457 10,358 30,841 31,384 Depreciation and

amortization (2) (3) 8,640 9,037 25,601 27,857 Station operating income 29,079 32,003 95,860 104,322

Corporate general and

administrative expenses 3,065 3,065 9,619 9,619 Operating income 26,014 28,938 86,241 94,703

Interest expense, net (4) 9,307 9,307 27,921 27,921 Income from continuing

operations before taxes 16,707 19,631 58,320 66,782

Income taxes 7,101 8,228 24,786 28,382 Income from continuing

operations 9,606 11,403 33,534 38,400

Less preferred stock

dividends (5) (355) (355) (1,066) (1,066)

Income applicable to

common stock $ 9,251 $ 11,048 $ 32,468 $ 37,334

Income per common

share - basic $ 0.17 $ 0.21 $ 0.60 $ 0.70

Number of common shares

used in the

calculation (6) 53,409 53,409 53,678 53,678

Income per common

share - diluted $ 0.17 $ 0.21 $ 0.60 $ 0.69

Number of common shares

used in the

calculation (7) 53,690 53,690 53,943 53,943

Supplemental Financial Data: Broadcast cash flow (8) $ 37,545 $ 40,681 $ 121,262 $ 131,527 Broadcast cash flow margin 41.5% 42.8% 44.0% 45.0% Operating cash flow (9) $ 34,480 $ 37,616 $ 111,643 $ 121,908 Operating cash flow margin 38.1% 39.6% 40.5% 41.7% After-tax cash flow (10) $ 18,246 $ 20,440 $ 59,135 $ 66,257 Program payments $ 10,631 $ 10,717 $ 31,040 $ 32,036 Long-term debt, net of

cash (11) N/A $451,342 N/A $ 451,342

The pro forma combined condensed statements of operations include:(i) the Argyle stations; (ii) the Hearst Stations; (iii) the fees derived by the Company for management of the Managed Stations; (iv) the effect of the Swap Transaction with STC Broadcasting where the Company exchanged WNAC and WDTN plus approx. $22 million for WPTZ/WNNE (Burlington/Plattsburgh) and KSBW (Monterey) (the "STC Swap"); and, the issuance of $500 million of Senior Notes and the issuance of 4 million shares and related over-allotment as if each of the acquisitions and financings had occurred on January 1 of each period presented.

Notes to Pro Forma Combined Condensed Statements of Operations

(1) 1997 reflects the elimination of certain expenses which would

have been eliminated under the Company's management.

(2) Reflects change in depreciation expense due to purchase

accounting adjustments to equipment and buildings, net of

depreciation already recorded in the historical financial

statements. The estimated useful lives used for equipment range

from 5 to 25 years and the estimated useful life used for

buildings range from 25 to 39 years.

(3) Reflects amortization of intangible assets resulting from

purchase accounting adjustments, net of amortization already

recorded in the historical financial statements. The estimated

useful lives used for these intangible assets were as follows:

FCC licenses, network affiliation agreements and goodwill -- 40

years; other intangibles -- 2 to 40 years

(4) Reflects interest expense recorded on the pro forma debt and the

amortization of deferred financing costs over the period of

related financings (in thousands):

Three Months Ended Nine Months Ended

September 30 September 30

1997 1998 1997 1998

Senior Notes due 2007 at

an interest rate

of 7.0% $ 2,188 $ 2,188 $ 6,564 $ 6,564 Senior Notes due 2018 at

an interest rate

of 7.0% 3,500 3,500 10,500 10,500 Senior Notes due 2027 at

an interest rate

of 7.5% 3,281 3,281 9,843 9,843 Senior Subordinated Notes

due 2005 at an interest

rate of 9.75% 63 63 189 189 Commitment fees for the

unused Credit Facility 313 313 939 939 Non-cash interest charges 562 562 1,686 1,686 Interest income

(600) (600) (1,800) (1,800)

$ 9,307 $ 9,307 $ 27,921 $ 27,921

(5) Reflects preferred stock dividends relating to the preferred

stock issued in conjunction with the acquisition of the Arkansas

Stations. The dividend calculation is shown here for purposes of

calculating income per common share.

(6) Basic income per share uses the weighted average number of shares

outstanding for the period presented, in accordance with FASB

Statement No. 128.

(7) Diluted income per common share uses the weighted average number

of shares outstanding for the period presented plus the effect of

the assumed exercise of all dilutive stock options outstanding

during the period in accordance with FASB Statement No. 128.

8) Broadcast cash flow is defined as station operating income, plus

depreciation and amortization, plus amortization of program

rights, minus program payments. Broadcast cash flow is presented

here not as a measure of operating results and does not purport

to represent cash provided by operating activities. Broadcast

cash flow should not be considered in isolation or as a

substitute for measures of performance prepared in accordance

with generally accepted accounting principles.

(9) Operating cash flow is defined as operating income, plus

depreciation and amortization, plus amortization of program

rights, minus program payments plus non-cash compensation

expense. Operating cash flow is presented here not as a measure

of operating results and does not purport to represent cash

provided by operating activities. Operating cash flow should not

be considered in isolation or as a substitute for measures of

performance prepared in accordance with generally accepted

accounting principles.

(10) After-tax cash flow is defined as income before extraordinary

item plus depreciation and amortization (does not give effect to

deferred taxes). After-tax cash flow does not present a measure

of operating results and does not purport to represent cash

provided by operating activities. After-tax cash flow should not

be considered in isolation or as a substitute for measures of

performance prepared in accordance with generally accepted

accounting principles. This measure may not be comparable to

similarly titled measures used by other companies.

(11) Long-term debt, net of cash represents total long-term debt less

cash (does not give effect to total working capital). This

calculation gives effect to the reduction of credit facility debt

in early July (from $29 million to zero) which occurred upon

receipt of the note receivable from STC relating to the STC Swap.

-0-

Hearst-Argyle Television, Inc.

Pro Forma Combined Condensed Statements of Operations

(Including the Pulitzer and Kelly Transaction)

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

1997 1998 1997 1998

(In thousands, except per share data)

Total revenues $ 162,315 $ 167,926 $ 495,723 $ 524,592

Station operating

expenses (1) 79,501 79,710 232,714 239,033 Amortization of program

rights 13,997 15,769 43,379 47,144 Depreciation and

amortization (2) (3) 31,858 31,731 94,603 95,761 Station operating income 36,959 40,716 125,027 142,654

Corporate general and

administrative expenses 3,950 3,950 11,850 11,850 Operating income 33,009 36,766 113,177 130,804

Interest expense, net (4) 30,831 30,831 92,495 92,495 Income from continuing

operations before taxes 2,178 5,935 20,682 38,309

Income taxes 980 2,671 9,307 17,239

Income from continuing

operations 1,198 3,264 11,375 21,070

Less preferred stock

dividends (5) (355) (355) (1,066) (1,066)

Income applicable to

common stockholders $ 843 $ 2,909 $ 10,309 $ 20,004

Income per common share

- basic $ 0.01 $ 0.03 $ 0.11 $ 0.22

Number of common shares

used in the

calculation (6) 92,065 92,065 92,334 92,334

Income per common share

- diluted $ 0.01 $ 0.03 $ 0.11 $ 0.22 Number of common shares

used in the

calculation (7) 92,345 92,345 92,598 92,598

Supplemental Financial

Data: Broadcast cash flow (8) $ 67,355 $ 72,715 $ 218,256 $ 239,668 Broadcast cash flow

margin 41.5% 43.3% 44.0% 45.7% Operating cash flow (9) $ 63,405 $ 68,765 $ 206,406 $ 227,818 Operating cash flow

margin 39.1% 40.9% 41.6% 43.4% After-tax cash flow (10) $ 33,056 $ 34,995 $ 105,978 $ 116,831 Program payments $ 15,459 $ 15,501 $ 44,753 $ 45,891 Long-term debt, net of

cash (11) N/A $1,679,414 N/A $ 1,679,414

The pro forma combined condensed statements of operations include: (i) the Argyle stations, the Hearst Stations, the fees derived by the Company for management of the Managed Stations and the effect of the swap transaction with STC Broadcasting where the Company exchanged WNAC and WDTN plus approx. $22 million for WPTZ/WNNE (Burlington/Plattsburgh) and KSBW (Monterey) (the "STC Swap"); (ii) the Pulitzer Broadcasting Business which includes nine television stations and five radio stations (the "Pulitzer Merger"); (iii) the $700 million New Debt assumed in the Pulitzer Merger; (iv) the issuance of approx. 38.7 million shares of the Company's Series A Common Stock in the Pulitzer Merger; (v) the issuance of $500 million of Senior Notes and the issuance of 4 million shares and related over-allotment; (vi) the Kelly Broadcasting Business which includes a Sacramento station and related time-brokerage agreement for another station (the "Kelly Transaction"); and, (vii) the issuance of $530 million of debt associated with the Kelly Transaction as if each of the acquisitions and related financings had occurred on January 1 of each period presented.

Notes to Pro Forma Combined Condensed Statements of Operations

(1) 1997 reflects the elimination of certain expenses which would

have been eliminated under the Company's management.

(2) Reflects change in depreciation expense due to purchase accounting

adjustments to equipment and buildings, net of depreciation

already recorded in the historical financial statements. The

estimated useful lives used for equipment range from 5 to 25 years

and the estimated useful life used for buildings range

from 25 to 39 years.

(3) Reflects amortization of intangible assets resulting from

purchase accounting adjustments, net of amortization already

recorded in the historical financial statements. The estimated

useful lives used for these intangible assets were as follows:

FCC licenses, network affiliation agreements and goodwill -- 40

years; other intangibles -- 2 to 40 years

(4) Reflects interest expense recorded on the pro forma debt and the

amortization of deferred financing costs over the period of

related financings (in thousands):

Three Months Ended Nine Months Ended

September 30 September 30

1997 1998 1997 1998

Senior Notes due 2007

at an interest rate

of 7.0% $ 2,188 $ 2,188 $ 6,564 $ 6,564 Senior Notes due 2018

at an interest rate

of 7.0% 3,500 3,500 10,500 10,500 Senior Notes due 2027

at an interest rate

of 7.5% 3,281 3,281 9,843 9,843 Senior Subordinated

Notes due 2005 at an

interest rate of 9.75% 63 63 189 189 Credit Facility 21,525 21,525 64,575 64,575 Commitment fees for the

unused Credit Facility 313 313 939 939 Non-cash interest

charges 561 561 1,685 1,685 Interest income (600) (600) (1,800) (1,800)

$ 30,831 $ 30,831 $ 92,495 $ 92,495

(5) Reflects preferred stock dividends relating to the preferred

stock issued in conjunction with the acquisition of the Arkansas

Stations. The dividend calculation is shown here for purposes of

calculating earnings per common share.

(6) Basic income per common share uses the weighted average number

of shares outstanding for the period presented, in accordance

with FASB Statement No. 128, plus shares to be issued in the

Pulitzer Merger using an assumed preceding 15-day weighted

average market price of $29.75. Under the equity "collar", the

maximum number of Series A Common Stock to be issued is

38,655,462 shares, calculated using the minimum price of $29.75

and the minimum number of Series A Common Stock to be issued is

29,870,130 shares, calculated using the maximum price of $38.50.

(7) Diluted income per common share uses the weighted average number

of shares outstanding for the period presented plus the effect

of the assumed exercise of all dilutive stock options

outstanding during the period in accordance with FASB Statement

No. 128, plus shares to be issued in the Pulitzer Merger using

an assumed preceding 15-day weighted average market price of

$29.75. Under the equity "collar", the maximum number of Series

A Common Stock to be issued is 38,655,462 shares, calculated

using the minimum price of $29.75 and the minimum number of

Series A Common Stock to be issued is 29,870,130 shares,

calculated using the maximum price of $38.50

(8) Broadcast cash flow is defined as station operating income, plus

depreciation and amortization, plus amortization of program

rights, minus program payments. Broadcast cash flow is presented

here not as a measure of operating results and does not purport

to represent cash provided by operating activities. Broadcast

cash flow should not be considered in isolation or as a

substitute for measures of performance prepared in accordance

with generally accepted accounting principles.

(9) Operating cash flow is defined as operating income, plus

depreciation and amortization, plus amortization of program

rights, minus program payments plus non-cash compensation

expense. Operating cash flow is presented here not as a measure

of operating results and does not purport to represent cash

provided by operating activities. Operating cash flow should not

be considered in isolation or as a substitute for measures of

performance prepared in accordance with generally accepted

accounting principles.

(10) After-tax cash flow is defined as income before extraordinary

item plus depreciation and amortization (does not give effect

to deferred taxes). After-tax cash flow does not present a

measure of operating results and does not purport to represent

cash provided by operating activities. After-tax cash flow

should not be considered in isolation or as a substitute for

measures of performance prepared in accordance with generally

accepted accounting principles. This measure may not be

comparable to similarly titled measures used by other companies.

(11) Long-term debt, net of cash represents total long-term debt less

cash (does not give effect to total working capital). This

calculation gives effect to the reduction of credit facility

debt in early July (from $29 million to zero) which occurred

upon receipt of the note receivable from STC relating to the STC

Swap.