WESTWOOD ONE, INC.
REPORTS RECORD 2002 SECOND QUARTER OPERATING RESULTS
REVENUE UP 5%
OPERATING CASH FLOW UP 17%
FREE CASH FLOW PER SHARE UP 21%
NET INCOME UP 28% (Assuming Adoption of SFAS 142 in 2001)
EARNINGS PER SHARE UP 32% (Assuming Adoption of SFAS 142 in 2001)

New York, NY -- July 30, 2002 -- Westwood One, Inc. (NYSE: WON) today reported record revenue, operating cash flow, net income and free cash flow results for the second quarter of 2002.

Net revenues for the second quarter of 2002 were a record $140.8 million as compared with $133.7 million for the second quarter of 2001, an increase of approximately $7.1 million or 5%. The increase was principally attributable to higher advertising rates and improved inventory utilization at both our network and traffic divisions, as well as a result of creating new programming.

Operating Cash Flow (defined as operating income plus depreciation and amortization) for the second quarter of 2002 was a record $52.6 million compared with $45.1 million in the second quarter of 2001, an increase of approximately $7.5 million or 17%.

Joel Hollander, President and Chief Executive Officer of Westwood One, stated: “I am extremely pleased that Westwood One continues to deliver record operating results in a difficult advertising environment. We achieved these record results by sticking to the basics – focusing on developing new business and creating new and innovative programming while keeping a tight control over costs.” Mr. Hollander added, “the Company continues to believe that the best use for its available cash is to repurchase its Common Stock.”

Free cash flow (defined as net income plus depreciation and amortization less capital expenditures) for the second quarter of 2002 was a record $31.7 million ($.29 per diluted share) compared with a $27.1 million ($.24 per diluted share) in the second quarter of 2001, an increase of $4.6 million or 17% ($.05 per diluted share). Free cash flow per share increased 21%.

Depreciation and amortization expense for the second quarter of 2002 was $2.9 million as compared with $17.1 million in the second quarter of 2001, a decrease of $14.2 million, or 83%. The decrease resulted primarily from the Company’s required adoption of SFAS 142, under which the Company no longer amortizes goodwill.

Operating income increased 78% in the second quarter of 2002 to a record $49.7 million compared with $28 million in the second quarter of 2001. Assuming the Company had adopted SFAS 142 on January 1, 2001, the Company’s operating income increased approximately 26%.

Jacques Tortoroli, Executive Vice President and Chief Financial Officer of Westwood One stated: “Our increased revenue and continued attention to cost controls has allowed us to expand our operating cash flow margin.”

Other income in the second quarter of 2002 was $41,000 compared with an expense of $1.2 million in the second quarter of 2001. In the second quarter of 2001 the Company recorded a non-cash charge to write-down the carrying value of the Company’s investments in internet companies, principally Sportsline.

Income tax expense in the second quarter of 2002 was $17.6 million compared with $12.6 million in the second quarter of 2001, an increase of $5 million, or 40%. The Company’s effective income tax rate in the first half of 2002 was 37% compared with 51% in the first half of 2001. The Company’s reported income tax expense and effective tax rates were affected by the Company’s adoption of SFAS 142. Assuming the Company had adopted SFAS 142 as of January 1, 2001, income tax expense would have increased by approximately 41% and the Company’s effective income tax rate would have been approximately 35% in 2001. Virtually all of the 2002 income tax expense is non-cash as a result of tax deductions related to stock option exercises and warrant purchases.

Net income for the second quarter of 2002 was a record $30.5 million ($.29 per basic share and $.28 per diluted share) as compared with $12.1 million ($.11 per basic share and diluted share) in the second quarter of 2001, an increase of $18.4 million. ($.17 per diluted share). Assuming the Company had adopted SFAS 142 as of January 1, 2001, net income and net income per diluted share would have increased by 28% and 32%, respectively.

In the first half of 2002, the Company continued to repurchase its securities, buying back approximately 4,447,000 shares of Common Stock and warrants for approximately $136.3 million.

2002 Outlook

For the third quarter of 2002, the Company expects revenue to increase in the mid single digits with double digit increases in both Operating Cash Flow, and Free Cash Flow per share. The Company is again raising its full year estimates due to improvements in the ad marketplace and currently expects full year 2002 Operating Cash Flow to approximate $187 million and Free Cash Flow per share to grow double digits.

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.

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Click here for Westwood One's Consolidated Statements of Operations

FOR IMMEDIATE RELEASE
Contact: Jacques Tortoroli
212.314.2063