Big City Radio Announces Auction Of Stations.

Big City Radio, Inc. YFM announced that it has retained Jorgenson Broadcast Brokerage to market and conduct an auction of all of the Company’s radio stations.

Proceeds from any sales of the stations will be utilized first to pay principal and interest in respect of the Company’s 11 1/4 % Senior Discount Notes due 2005 and to pay any other Company liabilities, with any remaining proceeds to be distributed to the Company’s shareholders. The sale of any of the stations will be subject to the approval of the Company’s Board of Directors as well as the approval of the Federal Communications Commission. The sale of all or substantially all of the assets of the Company will be subject to shareholder approval. No assurances can be provided that the Company will be successful in selling the stations at all or selling the stations at prices sufficient to pay the principal and interest on the Notes. In the absence of successful sales, the Company will consider other strategic alternatives including filing for protection under the United States bankruptcy laws.

The Company had previously announced that it did not make the September 15, 2002 semi-annual interest payment on the $174 million principal amount of Notes because it did not have sufficient cash to make the payment. The grace period with respect to the non-payment of interest lapsed on October 15, 2002, thereby resulting in an event of default under the indenture governing the Notes.

Big City Radio currently owns and operates radio stations in New York, Los Angeles and Chicago and an in-house radio rep firm.