Entravision Communications Acquires KCTY-FM In Dallas From Spanish Broadcasting System.

Entravision Communications Corporation announced an agreement whereby Entravision will acquire KTCY-FM, in Dallas from Spanish Broadcasting for approximately $35 million in cash.

Entravision currently owns and/or operates four FM stations and two AM stations in Dallas (KRVA-FM, KRVF-FM, KXGM-FM, KZMP-FM, KRVA-AM and KZMP-AM). KTCY-FM is Spanish Broadcasting’s only radio station in Dallas. The sale reflects Spanish Broadcasting’s previously disclosed strategy to sell non-core assets and focus on strengthening the company’s leading radio stations in the nation’s largest Hispanic markets.

Entravision has begun managing KTCY-FM under an interim local marketing agreement (LMA). KTCY-FM, a full market signal station, will be converted to Entravision’s Super Estrella format, a music-driven, pop and alternative Spanish rock format targeting Hispanic males and females ages 18-34. Entravision currently broadcasts Super Estrella in the Dallas market from KRVA-FM and KRVF-FM. The acquisition is expected to close by the end of the third quarter of 2002.

Walter Ulloa, Chairman and CEO of Entravision, commented, “With the acquisition of KTCY-FM we have significantly strengthened our position in Dallas. Our strong, unified sales team and established operating structure in the Dallas market, coupled with the opportunity to reformat the station to our advertiser-attractive Super Estrella programming format, made KTCY-FM a perfect addition to our station group.”

Raúl Alarcón, Chairman, President and CEO of Spanish Broadcasting System, commented, “This transaction reflects our strategy of focusing on our core markets and opportunistically redeploying certain non-strategic stations as we strengthen our clusters in the nation’s largest Hispanic markets. The cash proceeds from this sale will enhance our financial flexibility.”