August 19, 2001

Hispanic Broadcasting Corporation announced it has agreed to acquire the assets of four FM radio stations serving the Phoenix, Arizona market, from Big City Radio, Inc. for a cash purchase price of $34.0 million.

Subject to required conditions and approvals, the closing of the transaction is anticipated to occur in the fourth quarter of 2001, at which time three of the acquired stations will be programmed with one new Hispanic-targeted format and the remaining station will be simulcast with the Company's existing Phoenix station, KHOT(FM) operating at 105.9MHz. The new Hispanic-targeted radio format in Phoenix is expected to generate operating losses in the fourth quarter of 2001 and for the full year 2002. The Company intends to use its cash balances to purchase the stations.

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