Emmis Communications Reports 3rd Quarter Results

Indianapolis… Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its third fiscal quarter ended November 30, 2008.

“While the economy in the United States and abroad continues to struggle, at Emmis we are working diligently to take the necessary steps to successfully navigate through these difficult times,” Emmis Chairman and CEO Jeff Smulyan said. “Despite crises at other media companies, Emmis continues to generate cash flow that is greater than two times its annual interest costs and had $63.6 million of cash on hand at the end of the third quarter. I am confident that we are well-positioned for this downturn, and will remain focused on managing our expenses and balance sheet while delivering the best product to our advertisers, listeners and readers.”

For the third fiscal quarter, net revenue was $85.1 million, compared to $90.6 million for the same quarter of the prior year.

Diluted net income per common share from continuing operations was ($3.45), compared to ($0.21) for the same quarter of the prior year. Both periods included non-cash charges, with the current year including a non-cash impairment charge of $3.51 per share and the prior year including a non-cash contract termination fee of $0.25 share. Excluding these non-cash charges in both periods, diluted net income per common share from continuing operations would have been $0.06, compared to $0.04 for the same quarter of the prior year.

For the third quarter, pro forma radio net revenues decreased 4 percent and pro forma publishing net revenues decreased 12 percent. Domestic radio net revenues for the third quarter decreased 8 percent compared to the same period of the prior year.

For the third quarter, operating loss was $197.3 million, due to the non-cash impairment loss, while Emmis’ station operating income was $21.6 million, compared to $25.9 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, excluding depreciation and amortization, for the quarter ended November 30, 2008, were $11.3 million and $8.0 million, respectively, representing a pro forma increase of 24 percent and 17 percent, respectively, over the same period of the prior year.

During the quarter, Emmis began a program that uses a portion of the cash from the sale of WVUE-TV in New Orleans, and possibly Emmis’ common stock, to pay quarterly bonuses to 64 employees to offset temporary salary reductions. Although the employees will be receiving the same amount of pay under the program, the structure of the program lowers operating costs under the terms of the Company’s credit agreement.

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

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 depreciation, amortization and non-cash compensation.

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

Emmis is an Indianapolis-based diversified media firm with radio 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. 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.