EMMIS COMMUNICATIONS ANNOUNCES AMENDMENT TO CREDIT FACILITY AND UPDATED GUIDANCE

Indianapolis – Emmis Communications Corporation (NASDAQ: EMMS) today announced the amendment of the existing $1.29 billion senior secured credit facility of Emmis Operating Company, a wholly-owned subsidiary of Emmis Communications.

“Emmis is committed to reducing its leverage and is working on a number of alternatives,” Emmis EVP & CFO Walter Berger said. “Today’s announcement is another step toward addressing this issue while we work through this process to arrive at an appropriate capital structure.”

The amendment provides Emmis with financial covenant relief through Dec. 1, 2002. Specifically, for the next four quarters the total leverage ratio will be increased to 8.5x and the senior leverage ratio will be increased to 6.5x, while the interest coverage ratio is reduced to 1.4x and the pro forma debt service coverage ratio is reduced to 1.05x. The amendment also provides for an extension of this covenant relief through Aug. 31, 2003, under certain conditions.

In addition, due to the difficult economic environment, intensified by the tragic events of September 11, the company is providing the following updated 3rd and 4th quarter and full-year guidance for net revenues, cash flow and after-tax cash flow:

Estimates, in millions, except ATCF:

++++++++++++++++++++++Q3 FY2002+++++Q4 FY2002+++++FY 2002

Net Revenue

Radio++++++++++++++++++++++$65.3+++++++++++++++$52.5++++++++$255.3

TV+++++++++++++++++++++++++++++52.2+++++++++++++++++45.2+++++++++++203.7

Publishing+++++++++++++++++18.7++++++++++++++++++16.0+++++++++++++70.4

Interactive+++++++++++++++++0.3+++++++++++++++++++0.3++++++++++++++++0.8

Total net revenue++136.5++++++++++++++++114.0+++++++++++530.2

Broadcast Cash Flow

Radio++++++++++++++++++++++++29.7++++++++++++++++++17.2+++++++++++++112.7

Television++++++++++++++++++16.3+++++++++++++++++10.7+++++++++++++64.0

Publishing+++++++++++++++++++2.8+++++++++++++++++++1.2+++++++++++++++++7.1

Interactive++++++++++++++++(0.3)++++++++++++++++(0.3)+++++++++++++(0.9)

Total BCF+++++++++++++++++48.5++++++++++++++++28.8++++++++++++182.9

Corporate+++++++++++++++++++5.7+++++++++++++++++++5.6+++++++++++++20.7

EBITDA*+++++++++++++++++++42.8+++++++++++++++++23.2+++++++++++162.2

*before certain charges

ATCF per share++++++++++0.36+++++++++++++++++0.14++++++++++++++1.32

This information is being released to widely disseminate the company’s outlook in accordance with Regulation FD, recently adopted by the Securities and Exchange Commission.