Emmis Completes Purchase of Controlling Interest in Six Austin Radio Stations

Partnership Adds Top Cluster in #32 Revenue Market

Indianapolis…Emmis Communications Corporation (Nasdaq: EMMS) today announced that the company has purchased 50.1% of a six-station radio cluster in Austin, Texas in a cash transaction for approximately $105 million. Sinclair Telecable, Inc. owns the remaining 49.9% interest in the cluster.

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 also owns Texas Monthly in the market.

Sinclair had operated the radio stations in a partnership with LBJ Broadcasting Company, L.P. since 1997. As part of this transaction, Emmis bought LBJ?s stake in the partnership. Sinclair then contributed the assets of KEYI-FM to the partnership, leaving Emmis with a 50.1% interest and Sinclair with a 49.9% interest. Although Sinclair will have board representation in the partnership, Emmis will manage the day-to-day operations and has an option to buy Sinclair?s 49.9% interest in about five years.