EMMIS COMMUNICATIONS RELEASES UPDATED FINANCIAL GUIDANCE

Indianapolis – EMMIS Communications Corporation (NASDAQ: EMMS) today announced the following guidance to investors for the 3-month periods ending August 31, 2001, November 30, 2001 and February 28, 2002.

“The economy has not improved as most people originally predicted, and our guidance needed to reflect that,” said EMMIS Chairman and CEO Jeff Smulyan. “At the same time, we strongly believe that we must continue to invest in our people and our existing properties. Our previous investments produced great ratings successes and increasing market share.”

EMMIS’ pro forma estimated 2nd quarter radio net revenue will be down 4-6%, while radio broadcast cash flow will be down 9-11%. Television net revenue for the quarter will be down 6-8%, as television broadcast cash flow will be off 11-13%. After-tax cash flow (ATCF) for the quarter will be $0.45-0.46 per share, and ATCF for the full year will be approximately $1.58.

Estimates:                              Q3 2002   Q4 2002   FY 2002

Radio net revenue                 74.0          61.1             271.9

Radio broadcast cash flow   36.7          22.0           123.6

TV net revenue                      55.1           51.3            212.0

TV broadcast cash flow        18.7           16.3            71.0

Publishing net revenue         20.4          16.8           72.9

Publishing cash flow              4.0            1.6              8.5

ATCF per share                      0.51           0.26          1.58

EMMIS attributed the revised estimates to the general softness in the economy that has continued to erode overall advertising sales in major markets. The revisions also reflect EMMIS’ strategy to over-allocate promotional dollars to its radio stations and to increase and train EMMIS’ sales force while continuing to aggressively manage costs in its operating segments. “We have great assets,” Smulyan said. “We think it’s inappropriate at this point to sacrifice long-term benefits for short-term fixes.”

EMMIS also announced that it is continuing efforts to separate its radio and television businesses. “I’ve said for some time that we need to separate our radio and television businesses,” Smulyan said. “We are now actively exploring a taxable spin-off of our Television Division which we believe can be completed without significant tax consequences to EMMIS or our shareholders.”

EMMIS will host a conference call regarding this information on Tuesday, Aug. 21 at 9 a.m. Eastern by dialing 1.888.877.0131, with a replay available until Tuesday, August 28 at 1.888.393.9641.

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