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NEWS Contact: Harry T NEWS Contact: Harry T. Hawks (212) 887-6823 Thomas W. Campo (212) 887-6827 HEARST-ARGYLE TELEVISION ANNOUNCES RESULTS FOR THE FIRST QUARTER NEW YORK, N.Y., May 1, 1998 – Hearst-Argyle Television, Inc. (Nasdaq: HATV) today announced operating results for the first quarter ended March 31, 1998. On a pro forma basis, broadcast cash flow for the quarter grew 13.5%, to $33.7 million, on revenue growth of 7.4%, to $87.3 million. Pro forma after-tax cash flow rose 16.1%, to $15.9 million; pro forma earnings per share increased 50%, to $0.12. On a GAAP reported basis, broadcast cash flow for the quarter grew 471%, to $33.7 million, on revenue growth of 388%, to $87.3 million. After-tax cash flow rose 3,575%, to $14.7 million. The following table summarizes the Company’s results. Three Months Ended March 31 ($ in millions, except per share data) Pro Forma GAAP – Reported Same-station 1997 1998 Change 1997 1998 Change Net Revenues $17.9 $87.3 388% $81.3 $87.3 7.4% Broadcast Cash Flow(1) $5.9 $33.7 471% $29.7 $33.7 13.5% Operating Cash Flow $4.9 $30.3 518% $26.3 $30.3 15.2% After-Tax Cash Flow $0.4 $14.7 3,575% $13.7 $15.9 16.1% Earnings per Share $(0.58) $(0.08) 86.2% $0.08 $0.12 50% (1) Definitions for Broadcast Cash Flow, Operating Cash Flow and After-tax Cash Flow are provided in the Notes to the accompanying financial tables. “The first quarter was both busy and satisfying for Hearst-Argyle,” noted Bob Marbut, chairman and co-chief executive officer. “In addition to favorable operating results in a somewhat difficult environment for ABC affiliated stations, we successfully completed a tender offer for our outstanding senior subordinated debt. We have a very attractive capital structure, and we remain the only investment grade pure-play television station company. -more- Hearst-Argyle First Quarter…2 “We are on schedule to complete our recently announced station swaps --- which will give us two more NBC stations --- in the second quarter,” Marbut continued. “ABC is still working to re-capture ratings momentum, and our stations were competing against the Olympics on CBS, so we were pleased with our first quarter operating results,” added John G. Conomikes, president and co-chief executive officer. “Our success this quarter reflects the strength in local news, programming and sales of our various ABC and NBC stations. “Our second quarter ad sales are pacing up by 4 to 5%,” Conomikes continued. “And the third and fourth quarters look promising; we should benefit from political advertising revenues, with major contests in Massachusetts, Ohio, Pennsylvania, Maryland and Hawaii, and from the fact that two or more Monday Night Football games will be played in or near each of our five largest ABC markets, which draw very high ratings for these games.” Recent Operating Accomplishments “Our major-market ABC stations continued to outperform the network average,” added David J. Barrett, executive vice president and chief operating officer. “And we are confident in ABC’s prime time program development. As ABC’s ratings improve, we feel we will be poised to reap even greater ratings success at our stations.” WCVB-TV, Boston, an ABC affiliate, won the January and February news ratings, with its local Monday through Friday newscasts placing No. 1 in all time periods. In the all- important February sweeps, NewsCenter 5 at 11 p.m. posted five- and seven-day averages of a 9.7 rating/21 share and a 9.1 rating/20 share, respectively. Chronicle, the station’s evening news and public affairs program, maintained a strong second place in “access” with a 9.3/15, even tying or beating Jeopardy on four nights out of the sweep. WCVB was named 1997’s News Station of the Year in Massachusetts Associated Press Broadcast Awards competition. The station also extended its partnership with the New England Patriots to air Patriots pre-season football games and Patriots Preview programs for three additional seasons. WTAE-TV, Pittsburgh, an ABC affiliate, was honored in March with a Best Newscast in the United States in the prestigious National Headliner Awards competition, for its 11 p.m. newscast. The station also received two regional Edward R. Murrow Awards, from the Radio-Television News Directors’ Association, and a regional Emmy, as well as three first- place honors in the Women in Communications Matrix Awards competition. Despite Olympics competition on another station, more people watched WTAE in February than any other Pittsburgh station. -more- Hearst-Argyle First Quarter…3 WBAL-TV, Baltimore, an NBC affiliate which began its 50th anniversary celebration in March, was No. 1 in the 5 p.m. weekday news and tied for No. 1 in the 6 p.m. weekday news during February sweeps, with 10/21 and 11/20 ratings/shares respectively. WBAL- TV was the only Baltimore TV station to show year-over-year growth in the 6 p.m. time period. WBAL-TV’s Saturday morning newscast outdelivers the second-rated Saturday morning newscast’s ratings by 66%. WLWT-TV, Cincinnati, an NBC affiliate celebrating its 50th anniversary this year, programmed three consecutive Saturdays of classic TV from throughout the station’s history, to critical and ratings success. NBC joined in the celebration, providing taped anniversary wishes from stars of the NBC News and Entertainment lineups; stars of syndicated programs carried by the station also provided taped anniversary wishes. The Cincinnati chapter of Women in Communications honored the station with a Gem Award for its role in promoting women’s issues. KMBC-TV, Kansas City, MO, an ABC affiliate, won in the ratings for all local newscasts for January, February and March, including the February sweeps, despite Olympics programming on a competing station. KCWB-TV, for which Hearst-Argyle Television provides programming services under a local marketing agreement, switched affiliation to UPN effective March 30. The recent premiere of the new Love Boat series on UPN achieved the No. 2 ratings in its time slot in Kansas City. WISN-TV, Milwaukee, an ABC affiliate, aired special Pack Attack 12 coverage of Super Bowl XXXII between the Green Bay Packers and Denver Broncos. Coverage included live reports in nightly newscasts, extended 10 p.m. newscasts, an hour-long program at 9 p.m. the night before the game, and a call-in program following the game. KOCO-TV, Oklahoma City, an ABC affiliate, in the February sweeps achieved dramatic growth in ratings and shares over the prior year period, particularly in key demographics, and is experiencing steady upward ratings momentum. In the 6 a.m. news, KOCO achieved a 15 share in Adults 25-54 compared to an 11 share in February 1997, and a 16 share in Women 25-54 vs. an 11 share the prior February. In the 5 p.m. news, KOCO gained an 18 share in Adults 18-49 vs. an 11 share in February 1997, and a 19 share in Adults 25-54 vs. a 14 share last year. Despite prime-time Olympics programming on a competing station, KOCO’s 10 p.m. news achieved a 15 share in Adults 25-54 vs. a 12 share in February 1997. KITV-TV, Honolulu, an ABC affiliate, has begun providing 30-minute in-flight videos under a one-year agreement to all of Japan Airlines’ inbound flights to Honolulu. The videos, entitled Hawaii on the Go, and sponsored by the ABC Stores, Atlantis Adventures, Budget Car Rental and Hawa’iki Tower, are produced by KITV and offer selected KITV programming in Japanese and English to some 80,000 airline viewers each month. In February, KITV’s News4 at 10 was No. 1 in all demos under 50. -more- Hearst-Argyle First Quarter…4 WAPT-TV, Jackson, MS, an ABC affiliate, achieved its highest 5 p.m. news ratings to date in the February sweeps, placing No. 1 in the market with a 14 rating/27 share. The station finished a strong second in the 6 p.m. and 10 p.m. news, while its weekend newscasts achieved viewer increases of 40% over last year. In the 6:30 p.m. time slot, Wheel of Fortune earned the station a 21 rating/33 share. The WAPT news department also won a regional Edward R. Murrow Award. KHBS-TV/KHOG-TV, Fort Smith/Fayetteville, AR, an ABC affiliate, has begun providing weather reports for KMAG, the No. 1 local radio station. KMAG cited the fact that KHBS/KHOG offers the area’s only live Doppler radar, which is 6-10 minutes faster than the national weather service radar used by other area radio and TV stations. WWWB-TV, the Hearst-Argyle managed WB affiliate in Tampa-St. Petersburg, earned a 9.2 rating for Opening Day of Tampa Bay Devil Rays Baseball, placing the station No. 1 in the time period for this early “fringe” period game. WPBF-TV, the Hearst-Argyle managed ABC affiliate in West Palm Beach, during the February ratings book experienced a 57% increase in household share, from February 1997 to February 1998, for its PBFNEWS at 5. Wheel of Fortune, which moved to WPBF in September 1997, is No. 1 in the market weekdays at 7 p.m., with a 12.8/21. The Hearst-Argyle television stations currently reach approximately 11.5% of U.S. television households and comprise the fourth largest non-network owned television station group in the United States. The Company recently announced plans to exchange its WNAC-TV, Providence, R.I., and WDTN-TV, Dayton, Ohio, with STC Broadcasting, Inc., for KSBW-TV, Monterey-Salinas, CA, and WPTZ-TV/WNNE-TV, Plattsburgh, NY/Burlington, VT.
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