HISPANIC BROADCASTING ANNOUNCES AGREEMENT TO ACQUIRE ASSETS OF WXXY–FM– SERVING CHICAGO, ILLINOIS

HISPANIC BROADCASTING ANNOUNCES AGREEMENT TO ACQUIRE ASSETS OF WXXY–FM– SERVING CHICAGO, ILLINOIS



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DALLAS–(HISPANIC PR WIRE – BUSINESS WIRE)–Jan. 2, 2003–Hispanic Broadcasting Corporation (the “Company”) (NYSE:HSP) today announced that it had entered into an agreement to acquire the assets of WXXY(FM), a radio station operating at 103.1 MHz and licensed to Highland Park, Illinois, from Big City Radio, Inc., for approximately $33.0 million. Following the closing of the acquisition, WXXY(FM) will be simulcast with one of the Company’s stations, WLXX(AM). The Company will finance the purchase of WXXY(FM) from a combination of cash on hand and borrowings under its credit facility. Closing of the acquisition, which is subject to regulatory approval, is anticipated to occur during the first quarter of 2003.

Lakeshore Media LLC is acting as the Company’s advisor in connection with this transaction. The Company has entered into an agreement with Superior Broadcasting of Chicago whereby Superior Broadcasting will hold the FCC licenses and certain other assets of the newly acquired station and the Company will program the station under a time brokerage agreement. Superior Broadcasting and the Company have entered into an Option Agreement by which the Company has an option to purchase the FCC licenses and certain assets used by WXXY(FM), subject to prior FCC consent. Upon the completion of the Company’s proposed merger with Univision Communications Inc., it is anticipated that Superior Broadcasting will file an application with the FCC requesting the assignment of the station’s FCC licenses to the Company.

Hispanic Broadcasting Corporation, the largest Spanish-language radio broadcaster in the United States, currently owns and operates 62 radio stations in fifteen of the top twenty Hispanic markets. The Company also owns and operates a network of Hispanic community-focused bilingual web sites found at http://www.netmio.com.

This news announcement contains certain forward-looking statements within the meaning of the U.S. securities laws. These statements are based upon current expectations and involve certain risks and uncertainties, including those related to the expected future operating performance of the Company’s radio stations and Internet business. Forward-looking statements include but are not limited to information preceded by, or that include the words, “believes,” “expects,” “prospects,” “pacings,” “anticipates,” “could,” “estimates,” “forecasts” or similar expressions. The reader should note that these statements may be impacted by several factors, including economic changes, regulatory changes, increased competition, the timing of announced acquisitions or radio station upgrades, changes in the broadcasting industry generally, and changes in interest rates. Other key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Accordingly, the Company’s actual performance and results may differ from those anticipated in the forward-looking statements. The Company undertakes no obligation to update or revise the information contained herein because of new information, future events or otherwise.

–30–mjr/da*

CONTACT:

Hispanic Broadcasting Corporation

Jorge Plasencia, 305/569-3130

HISPANIC BROADCASTING ANNOUNCES AGREEMENT TO ACQUIRE ASSETS OF WXXY–FM– SERVING CHICAGO, ILLINOIS