Emmis Communications Reports 1st Quarter Results

Indianapolis…Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its first fiscal quarter ended May 31, 2007.

“Our results were in line with guidance for the quarter,” Emmis Chairman and CEO Jeff Smulyan said. “As expected, weakness in our radio division persisted, and we will continue to face challenges as we look for the changes we’ve implemented in our largest markets to gain momentum.”

For the first fiscal quarter, net revenue was $87.3 million, compared to $89.8 million for the same quarter of the prior year, a decrease of 3 percent. The decrease related primarily to revenue declines at Emmis’ New York and Los Angeles radio stations.

Diluted net loss per common share from continuing operations for the quarter was $0.07, representing no change from the same quarter of the prior year.

For the first quarter, radio net revenues decreased 5.5 percent, while publishing net revenues increased 6.0 percent.

For the first quarter, operating income was $12.1 million, compared to $16.1 million for the same quarter of the prior year. Emmis’ station operating income for the first quarter was $23.1 million, compared to $27.3 million for the same quarter of the prior year.

Emmis has included supplemental financial data on its Web site, www.emmis.com, under the “Investors” tab.

International radio net revenues for the quarter ended May 31, 2007, were $8.2 million, up 28 percent compared to the same quarter of the prior year. International radio station operating expenses were $5.4 million, up 23 percent.

During the quarter, the Company completed its sale of KMTV-TV in Omaha to Journal Communications and received $10.0 million in cash. KMTV-TV had been operated by Journal Communications under a local programming and marketing agreement since December 5, 2005.

Subsequent to the quarter end, Emmis completed its sale of KGMB-TV in Honolulu to HITV Operating Co., Inc., a wholly-owned portfolio company of MCG Capital Corporation, for $40.0 million in cash. Emmis used the proceeds to repay outstanding debt obligations. In connection with the sale, Emmis plans to record a gain on sale of approximately $10.4 million, net of tax, in its quarter ended August 31, 2007, which will be reflected in discontinued operations.

The company expects its radio net revenues for the quarter ending Aug. 31, 2007, to decrease from the prior year in the mid- to high single digit range on a percentage basis. The company expects its radio station operating expenses for the quarter ending Aug. 31, 2007, to increase from the prior year in the mid- to high single digit range on a percentage basis. International radio operations continue to perform well, offsetting to some degree continued weakness in domestic radio operations.

Emmis will host a call regarding this information on Tuesday, July 10, at 9 a.m. Eastern at 1.517.623.4891, with a replay available through 6 p.m. Eastern on Tuesday, July 17, at 1.203.369.3744. Listen online at www.emmis.com.

Emmis generally evaluates the performance of its operating entities based on station operating income. Management believes that station operating income is useful to investors because it provides a meaningful comparison of operating performance between companies in the industry and serves as an indicator of the market value of a group of stations or publishing entities. Station operating income is generally recognized by the broadcast and publishing industries as a measure of performance and is used by analysts who report on the performance of broadcasting and publishing groups. Station operating income does not take into account Emmis’ debt service requirements and other commitments, and, accordingly, station operating income is not necessarily indicative of amounts that may be available for dividends, reinvestment in Emmis’ business or other discretionary uses.

Station operating income is not a measure of liquidity or of performance in accordance with accounting principles generally accepted in the United States, and should be viewed as a supplement to, and not a substitute for, our results of operations presented on the basis of accounting principles generally accepted in the United States. Moreover, station operating income is not a standardized measure and may be calculated in a number of ways. Emmis defines station operating income as revenues net of agency commissions and station operating expenses, excluding non-cash compensation.

Emmis Communications – Great Media, Great People, Great Service®

Emmis is an Indianapolis-based diversified media firm with radio broadcasting, television broadcasting and magazine publishing operations. Emmis owns 21 FM and 2 AM domestic radio stations serving the nation’s largest markets of New York, Los Angeles and Chicago, as well as St. Louis, Austin, Indianapolis and Terre Haute, Ind. In May 2005, Emmis announced its intent to seek strategic alternatives for its 16 television stations, and has since sold 15 of them. Emmis also owns a radio network, international radio stations, regional and specialty magazines, an interactive business and ancillary businesses in broadcast sales.

The information in this news release is being widely disseminated in accordance with the Securities & Exchange Commission’s Regulation FD.

Note: Certain statements included in this release or in the attached financial data which are not statements of historical fact, including but not limited to those identified with the words “expect,” “will” or “look” are intended to be, and are, by this Note, identified as “forward-looking statements,” as defined in the Securities and Exchange Act of 1934, as amended. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statement. Such factors include, among others:

• general economic and business conditions;

• fluctuations in the demand for advertising and demand for different types of advertising media;

• our ability to service our outstanding debt;

• increased competition in our markets and the broadcasting industry;

• our ability to attract and secure programming, on-air talent, writers and photographers;

• inability to obtain (or to obtain timely) necessary approvals for purchase or sale transactions or to complete the transactions for other reasons generally beyond our control;

• changes in radio audience measurement methodologies;

• increases in the costs of programming, including on-air talent;

• inability to grow through suitable acquisitions;

• new or changing regulations of the Federal Communications Commission or other governmental agencies;

• competition from new or different technologies;

• war, terrorist acts or political instability; and

• other factors mentioned in documents filed by the company with the Securities and Exchange Commission.

Emmis does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.