SFX Broadcasting to swap Dallas radio properties for CBS' Houston station; Also agrees to sell KTCK-AM to Susquehanna

Business Wire, May 7, 1996

NEW YORK--(BUSINESS WIRE)--May 7, 1996--SFX Broadcasting Inc. ("SFX")(NASDAQ:SFXBA) and CBS Radio, a division of CBS Inc., today jointly announced that they have agreed to exchange SFX's KRLD-AM and the Texas State Networks in Dallas for CBS' KKRW(FM) in Houston.

This is anticipated to be a tax-free, like-kind exchange. Additionally, SFX has agreed to sell KTCK-AM, its remaining Dallas radio property, to Susquehanna Radio Corp. for $14.0 million.

SFX currently owns radio station KODA(FM) and has agreed to acquire KQUE(FM) and KNUZ-AM, all in Houston.

Commenting on the transaction, Robert F.X. Sillerman, Executive Chairman of SFX Broadcasting, said, "As we have previously stated, we see 1996 developing as the year of strategic property swaps between major owners, as parties work to establish economic clusters of stations within a market. This swap furthers our strategy of moving out of certain markets, such as Washington, D.C., where we announced last week that we would sell for $25 million three stations which were not contributing to cash flow.

"Both KRLD and the Texas State Networks are excellent properties, and will add strategic components to CBS' news properties. KTCK, known as `The Ticket,' will be an excellent addition to Susquehanna's Dallas presence. We are delighted to be gaining KKRW, the number one ranking station among men, which will join KODA, the top ranking station among women, creating a powerful combination in the dynamic Houston market. These transactions make tremendous economic sense and will provide enhanced revenue opportunities for all parties."

Radio station KKRW(FM) has been one of four CBS ARROW formatted stations, playing a classic rock/oldies format since November 1993. Houston is the ninth ranking market.

Both transactions are subject to the approval of the Federal Communications Commission.

Paul Leonard of Dallas-based Star Media Group brokered both transactions.

With the anticipated consummation of all previously announced transactions, SFX will own and operate or provide services to the following radio stations: -0-