Entravision Communications Corporation Announces Settlement With Interep National Radio Sales, Inc.

Entravision Communications Corporation EVC announced that it has reached a settlement in regard to the termination of its contract with Interep National Radio Sales, Inc. IREP, Entravision’s former national radio sales representative. In August of 2001 Entravision terminated its contract with Interep and entered into a 50/50 joint venture with Lotus Hispanic Reps Corp., creating Lotus/Entravision Reps LLC, the exclusive national advertising representative for Entravision and Lotus radio stations.

As a result of the settlement, Entravision will record a one-time charge of approximately $1.5 million in the second quarter of 2002. The company previously reported that it anticipated that it would incur a one-time charge related to the dispute if and when it was resolved. Excluding this one time charge the company expects second quarter financial results to be toward the high end of its current guidance of $60.5 to $62.0 million in revenues and $18.2 to $18.7 million in EBITDA.

Walter Ulloa, Chairman and CEO of Entravision, commented, “We continue to see solid momentum across our core business lines. Our television and radio divisions are posting strong ratings and revenue pacings remain well ahead of industry averages. In addition, we continue to anticipate a return to revenue growth at our outdoor division in the second half of 2002. We look forward to reporting our full second quarter results and providing commentary on our third quarter outlook in early August.”