NEWS RELEASE
February 5, 2001
FOR IMMEDIATE RELEASE
RADIO ONE, INC. COMPLETES THE ACQUISITION OF RADIO STATION IN DALLAS, TEXAS AND
THE DIVESTITURE OF NON-CORE STATIONS IN RICHMOND, VA AND GREENVILLE, SC
Washington, DC - Radio One, Inc. (NASDAQ: ROIAK and ROIA) announced today that
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it has completed the acquisition of a radio station in Dallas, Texas. This
radio station, KTXQ-FM (formerly known as "KDGE-FM"), which is licensed to
Gainesville, Texas, broadcasts on 94.5 MHz. The station was acquired from
Sunburst Dallas, L.P. for approximately $52.5 million. Additionally, the
Company completed the sale of one radio station in Richmond, Virginia and two
radio stations in Greenville, South Carolina to Cox Radio, Inc. for
approximately $52.5 million and one radio station in Richmond, Virginia to
Honolulu Broadcasting, Inc. for approximately $1.0 million.
Additionally, Radio One had previously entered into Asset Purchase and Licensing
Agreements with Clear Channel Communications to acquire and/or license the
intellectual property and the call sign "KTXQ-FM", serving the Dallas market and
programmed in the "Jammin' Oldies" format. As part of those Agreements, Radio
One acquired the exclusive right to program the "Jammin' Oldies" format in the
Dallas, Texas market and use the call sign "KTXQ-FM", both of which it has
transferred to the former "KDGE-FM". "Jammin' Oldies" is an Urban-oriented
format which targets 25-54 year-old listeners.
In Richmond, Radio One divested WDYL-FM (an Alternative Rock station) and WARV-
FM (a Country station). In Greenville, Radio One divested WJMZ-FM (an Urban
station) and WPEK-FM (a Talk station).
Commenting on these transactions, Radio One CEO and President Alfred C. Liggins,
III said, "This acquisition, in conjunction with the divestiture of non-core
assets in Greenville, South Carolina and Richmond, Virginia makes great sense
for our shareholders on several levels. First, through this acquisition we will
have built a powerful cluster of Urban stations in one of the largest and
fastest growing radio markets in the country. Second, we have divested non-
Urban radio stations in Richmond where we will continue to own and/or operate
all of the Urban radio stations and our stations in Greenville, which is one of
the smallest markets in which we operate and which is not a core component of
our national platform strategy. Third, these transactions allow us to enhance
our long-term growth outlook and reinforce our major market Urban strategy
without negatively affecting the Company's capital structure or our historical
cash flow. This series of transactions reflects our strong commitment to our
core competencies as well as financial and operational prudence."
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- - RADIO ONE, INC. COMPLETES ACQUISITION OF RADIO STATION IN DALLAS, TEXAS AND
DIVESTITURE NON-CORE STATIONS IN RICHMOND, VIRGINIA AND GREENVILLE, SOUTH
CAROLINA
Radio One does not anticipate a significant impact to after-tax cash flow for
2001 as a result of these transactions.
Radio One is the nation's largest radio broadcasting company primarily targeting
African-American and urban listeners. Pro forma for all announced acquisitions
and divestitures, the Company owns and/or operates 47 radio stations located in
17 of the 50 largest African-American markets in the United States.
This press release may include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Because these statements apply to future events, they are
subject to risks and uncertainties that could cause actual results to differ
materially, including the absence of a combined operating history with an
acquired company or radio station and the potential inability to integrate
acquired businesses, need for additional financing, high degree of leverage,
granting of rights to acquire certain portions of the acquired company's or
radio station's operations, variable economic conditions and consumer tastes, as
well as restrictions imposed by existing debt and future payment obligations.
Important factors that could cause actual results to differ materially are
described in the Company's reports on Forms 10-K and 10-Q and other filings with
the Securities and Exchange Commission.
For more information contact Scott R. Royster, Executive Vice President and
Chief Financial Officer at 301-429-2642.