Emmis Communications Reports 3rd Quarter Results

Indianapolis…Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its third fiscal quarter ended Nov. 30, 2007.

“Along with everyone in the radio business, we face unprecedented challenges, particularly in our largest radio markets,” Emmis Chairman and CEO Jeff Smulyan said. “However, in the third quarter we closed the gap between our performance and that of our markets. Excluding KMVN in Los Angeles, we actually outperformed our markets. Coupled with a continued strong showing in our international stations and publishing operations, I’m hopeful about the new year.”

For the third fiscal quarter, net revenue was $91.7 million, compared to $91.2 million for the same quarter of the prior year.

Diluted net loss per common share from continuing operations was ($0.22), compared to ($0.09) for the same quarter of the prior year.

For the third quarter, radio net revenues decreased 3.2%, while pro forma publishing net revenues were up 4.6%. Domestic radio net revenues decreased 7% during the quarter, primarily as a result of continuing weakness in the Company’s New York and Los Angeles clusters.

On Oct. 1, Emmis terminated its existing national sales representation agreement with Interep

National Radio Sales, Inc. and entered into a new agreement with Katz Communications, Inc. extending through March 2018.

For the third quarter, operating income was $2.0 million, compared to $17.6 million for the same quarter of the prior year. The decrease is attributable principally to a one-time contract termination fee associated with the Company’s change in national representative firms. The termination fee was paid by our new national representation firm and was a non-cash charge for Emmis. Emmis’ station operating income for the third quarter was $26.2 million, compared to $30.2 million for the same quarter of the prior year.

Emmis has included supplemental pro forma net revenues, station operating expenses, and certain other financial data on its website, www.emmis.com under the “Investors” tab.

International radio net revenues and station operating expenses for the quarter ended Nov. 30, 2007 were $9.0 million and $6.4 million, respectively. International radio net revenues increased 30% in the quarter as net revenues jumped in each of our international markets.

Subsequent to quarter end, Emmis announced its acquisition of Inforadio, a national radio chain broadcasting in 13 Bulgarian cities, for $8.8 million. Inforadio is Emmis’ third national radio brand in Bulgaria; the company also operates Radio FM+ and Radio Fresh.

The following table reconciles reported results to pro forma results (dollars in thousands):

On a pro forma basis, the Company expects its radio net revenues for its quarter ending Feb. 29, 2008 to be in line with revenues in the prior year, inclusive of domestic and international radio operations and certain national revenue guarantees in the Company’s new national sales representation agreement. The Company is not able to reasonably estimate the exact amount, if any, of the national revenue guarantees at this time. On a pro forma basis, the Company expects its radio station operating expenses to increase in the low single digits.

Emmis will host a call regarding this information on Wednesday, Jan. 9 at 9 a.m. Eastern at 1.517.623.4891, with a replay available through Wednesday, Jan. 16 at 1.203.369.3135. 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 report or in the financial statements contained herein 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;

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

• inability to grow through suitable acquisitions;

• Changes in audience measurement systems

• 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.