Emmis Communications Reports 4th Quarter Results

Indianapolis…Emmis Communications Corporation (NASDAQ: EMMS) today announced results for its fourth fiscal quarter and full year ended Feb. 28, 2007.

“Weakness in our two key radio operations, New York and Los Angeles, presented us difficulties throughout the year and the fourth quarter was no exception,” Emmis Chairman and CEO Jeff Smulyan said. “Unfortunately, we will continue to face difficulties in these markets in the foreseeable future. However, I’m confident that the best people in the business, coupled with Emmis’ 25 years of innovation and excellence, will lead us to better days.”

For the fourth fiscal quarter, reported net revenue was $78.6 million, compared to $82.4 million for the same quarter of the prior year, a decrease of 4.6%. The decrease related primarily to revenue declines at Emmis’ New York and Los Angeles radio stations.

Diluted net loss per common share from continuing operations for the quarter was ($0.23), compared to ($1.01) for the same quarter of the prior year. The prior year fourth-quarter results include charges that affect the comparability with the current year, including impairment losses and various charges related to the company’s television divestitures.

For the fourth quarter, reported and pro forma radio net revenues decreased 6%, while publishing net revenues were down slightly.

For the fourth quarter, operating income was $4.3 million, compared to an operating loss of $35.5 million for the same quarter of the prior year. Prior year results included certain corporate bonus and severance payments related to our television divestitures ($6.1 million) and impairment losses ($35.7 million) totaling $41.8 million; excluding these charges, operating income for the fourth quarter of the prior year would have been $6.3 million. Emmis’ station operating income for the fourth quarter was $15.0 million, compared to $19.0 million for the same quarter of the prior year.

Emmis has included supplemental pro forma net revenues, station operating expenses, and certain other financial data on its website, www.emmis.com under the “Investors” tab.

International radio net revenues and station operating expenses for the quarter ended Feb. 28, 2007, were $9.8 million and $7.0 million, respectively, and both were up 9% on a pro forma basis as compared to the same quarter of the prior year.

On February 20, 2007, Emmis entered into a definitive agreement to sell KGMB-TV (Honolulu) to HITV Operating Co, Inc. for $40.0 million in cash. The company expects the transaction to close in the first half of calendar 2007.

During the quarter, the company increased its ownership in Radio Fresh! in Bulgaria. Emmis moved from minority to majority shareholder in the highly rated national CHR station.

Subsequent to the quarter end, the company announced an investment in Exponentia, a Vancouver-based mobile and online games and applications developer.

The following table reconciles reported results to pro forma results (dollars in thousands):

The company expects its radio net revenues for the quarter ending May 31, 2007, to decrease from the prior year in the mid- to high single digit range on a percentage basis. Conversely, the company expects its radio station operating expenses for the quarter ending May 31, 2007, to increase from the prior year in the mid- to high single digit range on a percentage basis. International radio operations continue to perform well, offsetting to some degree continued weakness in domestic radio operations.

Emmis will host a call regarding this information on Friday, May 11, at 9 a.m. Eastern at 1.517.623.4891, with a replay available through Friday, May 18, at 1.203.369.3658. Listen online at www.emmis.com.

Emmis generally evaluates the performance of its operating entities based on station operating income. Management believes that station operating income is useful to investors because it provides a meaningful comparison of operating performance between companies in the industry and serves as an indicator of the market value of a group of stations or publishing entities. Station operating income is generally recognized by the broadcast and publishing industries as a measure of performance and is used by analysts who report on the performance of broadcasting and publishing groups. Station operating income does not take into account Emmis’ debt service requirements and other commitments, and, accordingly, station operating income is not necessarily indicative of amounts that may be available for dividends, reinvestment in Emmis’ business or other discretionary uses.

Station operating income is not a measure of liquidity or of performance in accordance with accounting principles generally accepted in the United States, and should be viewed as a supplement to, and not a substitute for, our results of operations presented on the basis of accounting principles generally accepted in the United States. Moreover, station operating income is not a standardized measure and may be calculated in a number of ways. Emmis defines station operating income as revenues net of agency commissions and station operating expenses, excluding non-cash compensation.

Emmis Communications – Great Media, Great People, Great Service®

Emmis is an Indianapolis-based diversified media firm with radio broadcasting, television broadcasting and magazine publishing operations. Emmis owns 21 FM and 2 AM domestic radio stations serving the nation’s largest markets of New York, Los Angeles and Chicago, as well as St. Louis, Austin, Indianapolis and Terre Haute, Ind. In May 2005, Emmis announced its intent to seek strategic alternatives for its 16 television stations, and has sold 14 of them. Emmis also owns a radio network, international radio stations, regional and specialty magazines, an interactive business and ancillary businesses in broadcast sales.

The information in this news release is being widely disseminated in accordance with the Securities & Exchange Commission’s Regulation FD.

Note: Certain statements included in this report or in the financial statements contained herein which are not statements of historical fact, including but not limited to those identified with the words “expect,” “will” or “look” are intended to be, and are, by this Note, identified as “forward-looking statements,” as defined in the Securities and Exchange Act of 1934, as amended. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statement. Such factors include, among others:

Emmis does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.