Emmis Communications Reports 4th Quarter and Full Year Results

Emmis Beats Wall Street Estimates; Pro Forma Station Operating Income Up 24%; Pro Forma Net Revenue Up 9 %

A conference call regarding this earnings release

is scheduled for 9 a.m. Eastern,

Tuesday, April 15, 2003. Dial in at 1.630.395.0023 or log on to www.emmis.com

Indianapolis…Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its fourth fiscal quarter and full year ending Feb. 28, 2003.

“Emmis has emerged as a company that is stronger and better positioned than ever before,” Emmis Chairman and CEO Jeff Smulyan said. “Our numbers bear that out: This year we were able to build our overall net revenue and operating margin in a difficult environment while also reducing our debt level. Our radio division grew in ratings and share, turned back a serious competitive challenge in New York, and continued our market-leading position in Los Angeles. In television, we combined a heavy news emphasis with smart programming choices and political dollars to create ratings and revenue share growth at nearly every station. TV Division revenues were up 14 percent and station operating income was up 31 percent, giving us among the highest growth rates in the television industry.”

For its fourth fiscal quarter, Emmis’ station operating income was $37.6 million, compared to $30.6 million for the same quarter of the prior year, an increase of 23%. On a pro forma basis, station operating income increased 24%. A table that reconciles reported results to pro forma results is below, as well as a table which reconciles operating income to station operating income.

Net revenue for the quarter was $126.8 million compared to $118.6 million for the same quarter of the prior year, an increase of 7%. On a pro forma basis, net revenue for the quarter was $126.8 million compared to $116.2 million for the same quarter of the prior year, an increase of 9%.

For the full year, net revenue grew to $562.4 million from $539.8 million, a 4% increase over the prior year. Station operating income grew to $213.1 million from $185.7 million, a 15% increase over the previous year.

On a pro forma basis, net revenue grew 6% and station operating income grew 17% over the previous year.

These results significantly exceed the company’s previous guidance as well as Wall Street estimates for revenues and station operating income. Earnings Per Share (EPS) for the quarter was a loss of $0.14 compared to a loss of $0.72 for the same quarter of the prior year. Approximately $0.16 of this $0.58 increase relates to the company’s adoption of SFAS No. 142, which had the impact of eliminating the company’s amortization expense for goodwill and FCC licenses.

International radio net revenues and station operating expenses for the quarter were $3.8 million and $2.0 million, respectively.

Phase II from the Winter 2002 Arbitron ratings information for the New York market was released in March, and Emmis again posted stellar results. WQHT remained a solid #1 in its target demographic (18-34) with a 10.0 share. WRKS moved to #4 (25-54) with a 4.5 share, up from 12th place just last year. WQCD remained in 7th place (25-54) with a 3.9 share. In Los Angles, KPWR-FM remains #1 (12+) in the ratings, and was the #6 biller in the U.S. last year.

With the adoption of Regulation G by the SEC, station operating income replaces broadcast cash flow as the metric used by management to assess the performance of our stations. Although it is calculated in the same manner as broadcast cash flow, management believes that using the term “station operating income” provides a more accurate description of the performance measure. See below for a further discussion of station operating income.

During the 4th Quarter, the company announced that Peter Lund, the former President and Chief Executive Officer of CBS Inc. and CBS Television and Cable, joined the Emmis Board of Directors.

Subsequent to the year end, Emmis announced that the company had signed an agreement with Sinclair Telecable Inc. to purchase 50.1% of a six-station radio cluster in Austin, Texas for approximately $105 million. The radio stations involved are KLBJ-AM (590 News-Talk), KLBJ-FM (93.7 Rock), KGSR-FM (107.1 Adult Alternative), KROX-FM (101.5 Alternative), KEYI-FM (103.5 Oldies), and KXMG-FM (93.3 CHR). Emmis already owns Texas Monthly in the market. The transaction is expected to close during the company’s 2nd fiscal quarter.

On March 3, Emmis announced it had completed the previously announced purchase of WBPG-TV, the WB affiliate in Mobile/Pensacola, giving Emmis a second station in the nation’s #63 market and growing Emmis Television to 16 properties.

The follow table reconciles reported results to pro forma results:

Quarter ended February 28, % Change Year ended February 28, % Change

2003 2002 2003 2002

Reported net revenues $126,791 $118,633 7% $562,363 $539,822 4%

Less: net revenues

from assets disposed – (2,481) (1,238) (11,968)

Pro forma net revenues 126,791 116,152 9% 561,125 527,854 6%

Reported station operating

expenses, excluding

non-cash compensation 89,175 88,055 1% 349,251 354,157 -1%

Less: station operating

expenses, excluding non-cash

compensation from assets disposed – (2,186) (708) (8,649)

Pro forma station

operating expenses, excluding

non-cash compensation 89,175 85,869 4% 348,543 345,508 1%

Reported station

operating income $37,616 $30,578 23% $213,112 $185,665 15%

Pro forma station

operating income $37,616 $30,283 24% $212,582 $182,346 17%

1st Quarter Guidance

Quarter ended 5/31/03 Quarter ended 5/31/02 (A)

Net Revenues:

Domestic Radio $61,700 60,500

Foreign Radio 2,700 2,200

Total Radio 64,400 62,700

Television 59,000 57,200

Publishing 17,400 16,900

Total net revenues 140,800 136,800

Station Operating Expenses, excluding non-cash compensation:

Domestic Radio 32,500 31,900

Foreign Radio 2,400 2,500

Total Radio 34,900 34,400

Television 38,000 36,800

Publishing 15,600 15,100

Total station operating expenses,

excluding non-cash comp: 88,500 86,300

Corporate Expenses 6,000 5,200

(A) Emmis sold two Denver radio stations in May 2002. Net revenues and station operating expenses for the three months ended May 31, 2002 were $1.2 million and $0.7 million, respectively.

Emmis will host a conference call regarding this information on Tuesday, April 15, 2003 at 9 a.m. Eastern at 1.630.395.0023, with a replay available until Tuesday, April 22, 2003 at 1.402.220.3834, or listen on-line by logging on to www.emmis.com. The website, under the Press Room tab, also contains GAAP information and reconciliation for certain non-GAAP financial measures discussed on the call.

Emmis Communications Great Media, Great People, Great Service sm

Emmis Communications is an Indianapolis based diversified media firm with radio broadcasting, television broadcasting and magazine publishing operations. Emmis’ 18 FM and 3 AM domestic radio stations serve the nation’s largest markets of New York, Los Angeles and Chicago as well as Phoenix, St. Louis, Indianapolis and Terre Haute, IN. In addition, Emmis owns two radio networks, three international radio stations, 16 television stations, award winning regional and specialty magazines, and ancillary businesses in broadcast sales and publishing. Emmis has announced the acquisition of a majority interest in six radio stations in Austin, Texas. Pending approvals from the Federal Communications Commission and other regulatory agencies, the transaction is expected to close in the company’s second fiscal quarter. After the close of the transaction, Emmis will own 27 radio stations in eight markets.

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

Emmis generally evaluates the performance of its operating entities based on station operating income. Management believes that station operating income is useful 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.