SBS’ Mega TV to purchase a TV station in Houston.

Spanish Broadcasting System, Inc. announced that on May 2, 2011, it entered into an agreement to acquire KTBU-TV (Digital 42;Virtual Channel 55) and other television assets serving the Houston market from U.S. Farm & Ranch Supply Company, Inc. and certain of its subsidiaries for $16.0 million. The acquisition is expected to close in the third quarter of 2011, pending FCC approval.

Raúl Alarcón, President and CEO of SBS commented, “Houston is a leading U.S. Hispanic market and this transaction is an ideal expansion of our Mega TV footprint, given the rapidly growing national Hispanic population.”

The Company intends to fund the acquisition from cash-on-hand and free cash flow generated from operations.

“MegaTV has always been at the forefront in providing original Hispanic programming to an audience that expects high quality and engaging content.  We are proud to expand our commitment to our viewers by bringing Mega TV to Houston on KTBU Channel 55,” commented Albert Rodriguez, Chief Revenue Officer of SBS.