Hearst-Argyle Television and Emmis Communications Enter Into Management Agreement for Phoenix Radio Stations.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 5, 2000

Hearst-Argyle Television, Inc. (NYSE: HTV) and Emmis Communications Corp. (NASDAQ: EMMS) have entered into an agreement by which Emmis will manage Hearst-Argyle's radio stations in Phoenix, Arizona for a period of up to three years. The transaction, subject to regulatory approval, is expected to become effective July 1.

The stations, KTAR-AM (620 AM), a news/talk station; KMVP-AM (860 AM), a sports station; and KKLT-FM (98.7 FM), a light rock/contemporary station, are leading stations in Phoenix, the nation's 15th largest radio market.

Under the arrangement, structured as a local management agreement (LMA), common in the broadcasting industry, Emmis will have the option of acquiring the stations for $160 million. During the LMA period, Hearst-Argyle will actively seek to identify a suitable television-station property to be acquired in an exchange transaction.

"KTAR is a Phoenix institution and our radio cluster of KTAR, KKLT and KMVP is an important force in the Phoenix media community," noted David J. Barrett, president and co-chief executive officer of Hearst-Argyle Television. "The staff and management of our stations have done an outstanding job over many years, and Hearst-Argyle and previous owner Pulitzer Broadcasting have been very proud of our people and the stations they have built. Nevertheless, given the rapid consolidation in the radio business and in the Phoenix market, we've concluded that these stations will be better positioned to compete and grow under the management of Emmis Communications, one of America's premiere radio companies.

"This transaction," Barrett continued, "will benefit our Company and our shareholders by capturing excellent value today for our Phoenix radio stations."

Added Bob Marbut, Hearst-Argyle chairman and co-chief executive officer, "We will be pursuing television properties for a possible exchange transaction, focusing on opportunities consistent with our objective of strengthening our television operations in local markets and regions. When we ultimately consummate a tax-effective transaction with Emmis, we expect that it will be immediately accretive to Hearst-Argyle's after-tax cash flow per share."

Hearst-Argyle Television, Inc. owns and/or manages 26 television stations and seven radio stations, in geographically diverse U.S. markets. The Company's television stations reach about 17.5% of U.S. TV households, making it one of the two largest U.S. television station groups not primarily aligned with a single network, as well as one of the seven largest television groups overall as measured by audience delivered. The Company also is a leader in the convergence of broadcast television and interactivity and is engaged in partnerships with several fast-growing interactive-media companies. Hearst-Argyle trades on the New York Stock Exchange under the symbol "HTV." Hearst-Argyle's corporate Web address is www.hearstargyle.com.

This news release contains forward-looking statements that are subject to risks and uncertainties. Forward looking statements include 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.