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WEST PALM BEACH, Fla.--(BUSINESS WIRE)--June 23, 1997--Paxson Communications
Corp. (ASE:PXN) announced Monday that it has reached an agreement to sell its entire radio
holdings including stations currently under acquisition contracts.
The radio group in being sold to Clear Channel Communications Corp. (NYSE:CCU) in a
tax-advantaged, all cash transaction totaling $693 million. Included in the sale are Paxson's 46
radio stations (42 in Florida), 6 radio news and sports networks, 2 minor league sports teams and
its billboard division with 526 faces in Florida.
A Paxson spokesperson said the sale is being set up so Paxson can effect a like kind exchange to
defer capital gains and use the proceeds to complete previously announced acquisitions of TV
stations. The sale is subject to FCC approvals as well as Hart Scott Rodino and definitive
agreements. Both parties were advised on this transaction by Bill Lisecky of Communications
Equity Associates Inc.
Commenting on the sale, Lowell "Bud" Paxson, chairman and CEO said: "I am sad to say farewell
to the radio management and the hundreds of employees in our radio division. The team has
worked diligently to create what both Paxson and Clear Channel consider to be the finest and
highest potential growth group of radio properties in the U.S. I began my radio career in the 50's
and here in the 90's we attained the title of Florida's largest broadcaster. It is this title we proudly
pass on to Lowry Mays, chairman and CEO of Clear Channel." Adding to his current radio group,
the Paxson stations will give Clear Channel a total of 53 radio stations in Florida.
"Paxson Communications will use sale proceeds to complete the announced TV station
acquisitions," Bud Paxson noted. "This provides us with ample cash to continue TV station
acquisitions. We anticipate that we will reach our goal of 70% penetration of all U.S. TV
households with full power TV stations by mid-1998. In addition, we'll have the wherewithal to
reduce debt and improve our balance sheet."
Paxson added, "We will now focus and capitalize on our high growth television holdings." Paxson
Communications is the nation's largest owner of television stations with 55 television stations in
markets serving 58% of all U.S. television households (56.6 million homes). Paxson has been
holding talks with major broadcast networks, Hollywood movie studios, cable MSO's and cable
programmers as well as syndicators to forge the foundation of a new broadcast television network.
Paxson expanded its TV holdings last week with the acquisition of The Travel Channel, a 24 hour
a day, cable exclusive network serving approximately 20 million cable television subscribers. For
additional information about Paxson Communications, visit the company's web site at
www.paxson.com.
This press release contains "forward-looking statements," within the meaning of federal securities
laws, that involve risks and uncertainties. All statements herein, other than those consisting solely of
historical facts, that address activities, events or developments that the company expects or
anticipates will or may occur in the future, including such things as business strategy, measures to
implement strategy, competitive strengths, goals, references to future success and other events may
be forward-looking statements. Statements herein are based on certain assumptions and analysis
made by the company in light of its experience and its perception of historical trends, current
conditions and potential future developments, as well as other factors it believes are appropriate in
the circumstances. However, whether actual results, events and developments will conform with
the company's expectations is subject to a number of risks and uncertainties and important factors
that could cause actual results, events and developments to differ materially from those referenced
in, contemplated by or underlying any forward-looking statements herein, including, among others,
the continued development and viability of the company's television operations, the company's
ability to manage its growth, the company's high level of indebtedness, restrictions imposed on the
company by the terms of its indebtedness and preferred stock, the impact of government
regulations, industry and economic conditions, competition, changes in operating expenses,
industry and economic conditions and other factors, many of which are beyond the control of the
company. Consequently, all forward-looking statements made herein are qualified by these
cautionary statements and there can be no assurance that the actual results, events or
developments referenced herein will occur or be realized.
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