Financial Press Releases

WESTWOOD ONE, INC.
2001 FIRST QUARTER OPERATING RESULTS

RECORD FIRST QUARTER RESULTS
OPERATING CASH FLOW UP 6%
FREE CASH FLOW UP 12%
NET INCOME UP 16%
FREE CASH FLOW PER SHARE UP 20%

New York, NY May 3, 2001 Westwood One, Inc. (NYSE: WON) today reported record operating cash flow and free cash flow for the first quarter of 2001.

Net revenues for the first quarter of 2001 were $121,569,000 compared with $122,102,000 for the first quarter of 2000, a decrease of approximately $533,000. The decrease in net revenues was principally due to a reduction in advertising spending by internet companies partially offset by higher revenues from the Company’s traditional, as well as, new advertisers.

Operating cash flow (defined as operating income plus depreciation and amortization) for the first quarter of 2001 was a record $29,317,000 compared with $27,742,000 in the first quarter of 2000, an increase of approximately $1,575,000, or 6%.

Free cash flow (defined as net income plus depreciation and amortization less capital expenditures) increased 12% to a record $19,884,000 ($.18 per diluted share)compared with $17,752,000 ($.15 per diluted share) in the first quarter of 2000, an increase of $2,132,000. Free cash flow per diluted share for the first quarter rose 20%.

Joel Hollander, President and Chief Executive Officer of Westwood One, stated:“Westwood achieved record operating results in the first quarter of 2001 in spite of difficult revenue comparisons with last year’s record first quarter revenue growth. We were able to achieve this through a combination of replacing the internet advertising category from last year with more traditional advertisers, as well as continued emphasis on cost controls.”Mr. Hollander added “that the Company also benefited in the quarter from the continued prudent investment in buying-back the Company’s stock, which resulted in the Company reporting free cash flow per share growth of 20% in spite of a difficult advertising environment.”

Depreciation and amortization expense for the first quarter of 2001 was $17,007,000 compared with $15,495,000 in the first quarter of 2000, an increase of $1,512,000, or 10%. The increase was principally attributable to depreciation and amortization associated with the SmartRoute acquisition.

Operating income increased nominally to $12,310,000 in the first quarter of 2001 from $12,247,000 in the first quarter of 2000.

Net interest expense increased in the first quarter of 2001 to $2,743,000 from $2,540,000 in 2000 due to higher debt levels partially offset by lower interest rates.

Income tax expense in the first quarter of 2001 was $4,967,000 compared with $5,751,000 in the first quarter of 2000, a decrease of $784,000, or 14%.The Company's effective income tax rate in the first quarter of 2001 was 52% compared with 59% in the first quarter of 2000. The decrease in the effective income tax rate is a result of nondeductible goodwill amortization being a smaller percentage of pretax income and lower state tax expense.

Net income for the first quarter of 2001 rose 16% to $4,600,000 ($.04 per basic and diluted share)compared with $3,956,000 ($.04 per basic and $.03 per diluted share) in the first quarter of 2000, an increase of approximately $644,000.

2001 Outlook

The Company expects to report full year 2001 EBITDA of approximately $183 million and Free Cash Flow of approximately $109 million. Revenues and EBITDA for the second quarter of 2001 are expected to be flat to down 5% compared to 2000 levels, where revenues from the internet category accounted for nearly 11% of reported second quarter 2000 revenues.

Westwood One provides over 150 news, sports, music, talk, entertainment programs, features, live events and 24/7 Formats. Through its subsidiaries, Metro Networks/Shadow Broadcast Services, Westwood One provides local content to the radio and TV industries including news, sports, weather, traffic, video news services and other information. SmartRoute Systems manages update information centers for state and local departments of transportation, and markets traffic and travel content to wireless, Internet, in-vehicle navigation systems and voice portal customers. Westwood One serves more than 7,500 radio stations. Westwood One, Inc. is managed by Infinity Broadcasting Corporation, a wholly-owned subsidiary of Viacom, Inc.

Certain statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases “guidance,” “expect,” “anticipate,” “estimates” and “forecast” and similar words or expressions are intended to identify such forward-looking statements.In addition any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements.Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this release include, but are not limited to: changes in economic conditions in the U.S. and in other countries in which Westwood One, Inc. currently does business (both general and relative to the advertising and entertainment industries); fluctuations in interest rates: changes in industry conditions; changes in operating performance; shifts in population and other demographics; changes in the level of competition for advertising dollars; fluctuations in operating costs; technological changes and innovations; changes in labor conditions; changes in governmental regulations and policies and actions of regulatory bodies; changes in tax rates; changes in capital expenditure requirements and access to capital markets. Other key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Except as otherwise state in this news announcement, Westwood One, Inc. does no undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

Click here for Westwood One's Consolidated Statements of Operations

FOR IMMEDIATE RELEASE CONTACT:
FARID SULEMAN
(212) 314-9215


	**First Quarter 2001 Second Quarter 2001 Third Quarter 2001 *Fourth Quarter 2001***
: : :	WESTWOOD ONE, INC. 2001 FIRST QUARTER OPERATING RESULTS RECORD FIRST QUARTER RESULTS OPERATING CASH FLOW UP 6% FREE CASH FLOW UP 12% NET INCOME UP 16% FREE CASH FLOW PER SHARE UP 20% New York, NY May 3, 2001 Westwood One, Inc. (NYSE: WON) today reported record operating cash flow and free cash flow for the first quarter of 2001. Net revenues for the first quarter of 2001 were $121,569,000 compared with $122,102,000 for the first quarter of 2000, a decrease of approximately $533,000. The decrease in net revenues was principally due to a reduction in advertising spending by internet companies partially offset by higher revenues from the Company’s traditional, as well as, new advertisers. Operating cash flow (defined as operating income plus depreciation and amortization) for the first quarter of 2001 was a record $29,317,000 compared with $27,742,000 in the first quarter of 2000, an increase of approximately $1,575,000, or 6%. Free cash flow (defined as net income plus depreciation and amortization less capital expenditures) increased 12% to a record $19,884,000 ($.18 per diluted share)compared with $17,752,000 ($.15 per diluted share) in the first quarter of 2000, an increase of $2,132,000. Free cash flow per diluted share for the first quarter rose 20%. Joel Hollander, President and Chief Executive Officer of Westwood One, stated:“Westwood achieved record operating results in the first quarter of 2001 in spite of difficult revenue comparisons with last year’s record first quarter revenue growth. We were able to achieve this through a combination of replacing the internet advertising category from last year with more traditional advertisers, as well as continued emphasis on cost controls.”Mr. Hollander added “that the Company also benefited in the quarter from the continued prudent investment in buying-back the Company’s stock, which resulted in the Company reporting free cash flow per share growth of 20% in spite of a difficult advertising environment.” Depreciation and amortization expense for the first quarter of 2001 was $17,007,000 compared with $15,495,000 in the first quarter of 2000, an increase of $1,512,000, or 10%. The increase was principally attributable to depreciation and amortization associated with the SmartRoute acquisition. Operating income increased nominally to $12,310,000 in the first quarter of 2001 from $12,247,000 in the first quarter of 2000. Net interest expense increased in the first quarter of 2001 to $2,743,000 from $2,540,000 in 2000 due to higher debt levels partially offset by lower interest rates. Income tax expense in the first quarter of 2001 was $4,967,000 compared with $5,751,000 in the first quarter of 2000, a decrease of $784,000, or 14%.The Company's effective income tax rate in the first quarter of 2001 was 52% compared with 59% in the first quarter of 2000. The decrease in the effective income tax rate is a result of nondeductible goodwill amortization being a smaller percentage of pretax income and lower state tax expense. Net income for the first quarter of 2001 rose 16% to $4,600,000 ($.04 per basic and diluted share)compared with $3,956,000 ($.04 per basic and $.03 per diluted share) in the first quarter of 2000, an increase of approximately $644,000. 2001 Outlook The Company expects to report full year 2001 EBITDA of approximately $183 million and Free Cash Flow of approximately $109 million. Revenues and EBITDA for the second quarter of 2001 are expected to be flat to down 5% compared to 2000 levels, where revenues from the internet category accounted for nearly 11% of reported second quarter 2000 revenues. Westwood One provides over 150 news, sports, music, talk, entertainment programs, features, live events and 24/7 Formats. Through its subsidiaries, Metro Networks/Shadow Broadcast Services, Westwood One provides local content to the radio and TV industries including news, sports, weather, traffic, video news services and other information. SmartRoute Systems manages update information centers for state and local departments of transportation, and markets traffic and travel content to wireless, Internet, in-vehicle navigation systems and voice portal customers. Westwood One serves more than 7,500 radio stations. Westwood One, Inc. is managed by Infinity Broadcasting Corporation, a wholly-owned subsidiary of Viacom, Inc. Certain statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases “guidance,” “expect,” “anticipate,” “estimates” and “forecast” and similar words or expressions are intended to identify such forward-looking statements.In addition any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements.Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this release include, but are not limited to: changes in economic conditions in the U.S. and in other countries in which Westwood One, Inc. currently does business (both general and relative to the advertising and entertainment industries); fluctuations in interest rates: changes in industry conditions; changes in operating performance; shifts in population and other demographics; changes in the level of competition for advertising dollars; fluctuations in operating costs; technological changes and innovations; changes in labor conditions; changes in governmental regulations and policies and actions of regulatory bodies; changes in tax rates; changes in capital expenditure requirements and access to capital markets. Other key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Except as otherwise state in this news announcement, Westwood One, Inc. does no undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise. Click here for Westwood One's Consolidated Statements of Operations FOR IMMEDIATE RELEASE CONTACT: FARID SULEMAN (212) 314-9215