Nation's Largets Radio Broadcasters Invest in USA Digital Radio

COLUMBIA, MD (January 7, 1999) - USA Digital Radio, Inc., a privately-held technology company headquartered in Columbia, Md., today announced that twelve of the nation's largest radio broadcasters, including nine of the top ten, along with Chase Capital Partners, a major investor in media and telecommunications, have taken equity positions in the company. Owners now include CBS Corporation, Chancellor Media Corporation, Chase Capital Partners, Citadel Communications Corporation, Clear Channel Communications, Cox Radio, Inc., Cumulus Media, Inc., Emmis Communications, Entercom Communications Corp., Gannett Co., Inc., Heftel Broadcasting Corporation, Jacor Communications, Radio One, Inc., and Sinclair Broadcast Group, Inc. USA Digital Radio owners have a total of approximately 1628 radio stations with combined revenues of $5.4B annually - almost half of all revenues in the radio industry, according to BIA Research. BT Alex. Brown Incorporated served as the placement agent for the offering.

"Digital Radio using In-Band On-Channel technology heralds a new age in broadcasting," said Robert Struble, President and Chief Executive Officer of USA Digital Radio. "This support by the nation's largest radio broadcasters reiterates the strong industry commitment to a digital future, and expresses confidence in USA Digital Radio's In-Band On-Channel Digital Audio Broadcast (IBOC DAB) technology. Through these investors, USA Digital Radio has assembled an ownership group with coverage in 192 of the 267 Arbitron rated markets (including 49 of the top 50 markets) with access to 207 million listeners."

"USA Digital Radio is at the forefront of bringing superior audio quality to AM and FM radio listeners everywhere", said Mel Karmazin, President and Chief Executive Officer of CBS Corporation. "The broadcasters who have joined CBS as owners of USA Digital Radio will now take part in one of the most significant events in the history of radio, the transition to a digital future."

USA Digital Radio is developing and marketing Digital Audio Broadcasting (DAB) which can transmit virtual-CD-quality audio signals to radio receivers. The company's In-Band On-Channel (IBOC) Digital Audio Broadcasting technology is designed to permit stations to use their current radio spectrum to transmit existing AM and FM analog simultaneously with new high-quality digital signals which eliminate multipath, noise, and reduce interference. USA Digital Radio's technology will provide a unique opportunity for broadcasters and listeners to convert from analog to digital radio without service disruption while maintaining current dial positions of existing stations. Listeners will also have the capability to receive expanded auxiliary data services, such as station and program content, stock, news, local traffic and weather information, e-mail and internet access and more.

"As a result of digital capabilities, listener expectations of audio quality are increasing at unprecedented rates" said Jeff Marcus, President and Chief Executive Officer of Chancellor Media Corporation. "Once completed, USA Digital Radio's audio broadcast technology will offer our stations the latest in technological innovations and our listeners extraordinary audio quality."

Lowry Mays, President and Chief Executive Officer of Clear Channel Communications said: "We believe the technical innovations that USA Digital Radio are developing in the field of terrestrial-based Digital Audio Broadcasting will not only produce exceptional audio quality for radio listeners, but will allow broadcasters to maintain preeminent positions in broadcast radio. Our investment in USA Digital Radio, a leader in audio broadcast technology, is a statement of confidence in this remarkable technical evolution."

USA Digital Radio was established in 1991 as a partnership among CBS Corporation, Westinghouse Electric Corporation, and Gannett Co., Inc. to develop In-Band On-Channel Digital Audio Broadcasting for the radio broadcast industry. "With IBOC development efforts on schedule and proceeding at a rapid pace and the regulatory process initiated, the timing was right to add strategic investors and focus on the implementation and roll-out of digital radio in the United States" continued Struble. On October 7, 1998, the company filed a Petition for Rulemaking with the FCC for implementing Digital Audio Broadcasting in the United States using its In-Band On-Channel technology, a technology that allows for use of the existing AM and FM spectrum. USA Digital Radio will now work under its new ownership to roll-out digital radio technology.

The vast majority of Americans will be impacted in one form or another by digital radio broadcasting. Broadcast radio is the primary source of information and entertainment for thousands of communities across the country, providing music, news, weather, traffic and local information to listeners. Euromonitor International estimates there are more than 550 million radio receivers in the United States today, an average of 5.6 radios per household. According to Arbitron, more than 95% of all people over the age of 12 listen to the radio more than 22 hours per week.

USA Digital Radio has been established to develop and market In-Band On-Channel Digital Audio Broadcasting technology for AM and FM radio. Owners include CBS Corporation, New York, New York; Chancellor Media Corporation, Dallas, Texas; Chase Capital Partners, New York, New York; Citadel Communications Corporation, Las Vegas, Nevada; Clear Channel Communications, San Antonio, Texas; Cox Radio, Inc., Atlanta, Georgia; Cumulus Media, Inc., Milwaukee, Wisconsin; Emmis Communications, Indianapolis, Indiana; Entercom Communications Corp., Bala Cynwyd, Pennsylvania; Gannett Co., Inc., Arlington, Virginia; Heftel Broadcasting Corporation, Dallas, Texas; Jacor Communications, Covington, Kentucky; Radio One, Inc., Lanham, Maryland and Sinclair Broadcast Group, Inc., Baltimore, Maryland. USA Digital Radio is committed to the establishment of a universal In-Band On-Channel Digital Audio Broadcasting implementation. USA Digital Radio's efforts include development agreements with several outside parties including Xetron Corporation, Cincinnati, Ohio, Fraunhofer Institut für Integrierte Schaltungen (IIS), Erlangen, Germany, BittWare Research Systems, Concord, New Hampshire, and Shively Labs, Bridgton, Maine.

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