Radio One, Inc. Reports First Quarter Results

WASHINGTON--(Business Wire)--
Radio One, Inc. (NASDAQ: ROIAK and ROIA) today reported its results for the
quarter ended March 31, 2009. Net revenue was approximately $60.7 million, a
decrease of 16% from the same period in 2008. Station operating income1 was
approximately $16.5 million, a decrease of 43% from the same period in 2008. The
Company recorded a non-cash impairment charge against its FCC licenses of
approximately $49.0 million, which lead to a net operating loss of approximately
$43.3 million. Net loss was approximately $59.4 million or a loss of $0.84 per
basic share, an increase in the amount of the reported net loss of approximately
$18.9 million or $0.19 per basic share for the same period in 2008.

Alfred C. Liggins, III, Radio One`s CEO and President stated, "On top of Q1
seasonally being the smallest of the year, the continuing poor economic climate
continued to weaken the demand for advertising in general. Our radio revenue
performance mirrored that of the markets we operate in, down 24%. Our radio
automobile business dropped by 57% compared to last year, and, we experienced
declines in both inventory pricing and sellout rates. We continued with our cost
cutting initiatives, and leveraged new and alternative revenue sources fueled by
the radio industry`s growth in digital and online dollars. Though business
continues to book extremely late, pacings indicate Q2 revenues will experience
declines similar to those in Q1. We will proactively continue to focus on radio
share growth, internet sales, further cost cuts and our balance sheet."

RESULTS OF OPERATIONS

Three Months Ended March 31,
2009 2008
(as adjusted)2
STATEMENT OF OPERATIONS (unaudited)
(in thousands, except share data)

NET $ 60,671 $ 72,498
REVENUE
OPERATING
EXPENSES:
Programmin 20,586 19,032
g and
technical
Selling, 23,574 24,477
general
and
administra
tive
Corporate 5,133 6,407
selling,
general
and
administra
tive
Stock 483 328
-based
compensati
on
Depreciati 5,255 3,664
on and
amortizati
on
Impairment 48,953 -
of long
-lived
assets
Total 103,984 53,908
operating
expenses
Operating (43,313 ) 18,590
(loss)
income
INTEREST (18 ) (201 )
INCOME
INTEREST 10,779 17,259
EXPENSE
GAIN ON (1,221 ) -
RETIREMENT
OF DEBT
EQUITY IN (1,150 ) 2,829
(INCOME)
LOSS OF
AFFILIATED
COMPANY2
OTHER (50 ) 11
(INCOME)
EXPENSE,
net
Loss (51,653 ) (1,308 )
before
provision
for income
taxes,
noncontrol
ling
interest
in income
of
subsidiari
es and
discontinu
ed
operations
PROVISION 7,071 8,898
FOR INCOME
TAXES
Net loss (58,724 ) (10,206 )
from
continuing
operations
INCOME 158 (7,821 )
(LOSS)
FROM
DISCONTINU
ED
OPERATIONS
, net of
tax
CONSOLIDAT (58,566 ) (18,027 )
ED NET
LOSS
NONCONTROL 871 823
LING
INTEREST
IN INCOME
OF
SUBSIDIARI
ES
NET LOSS $ (59,437 ) $ (18,850 )
ATTRIBUTAB
LE TO
COMMON
STOCKHOLDE
RS

AMOUNTS
ATTRIBUTAB
LE TO
COMMON
STOCKHOLDE
RS:
NET LOSS $ (59,595 ) $ (11,029 )
FROM
CONTINUING
OPERATIONS
INCOME 158 (7,821 )
(LOSS)
FROM
DISCONTINU
ED
OPERATIONS
, net of
tax
NET LOSS $ (59,437 ) $ (18,850 )
ATTRIBUTAB
LE TO
COMMON
STOCKHOLDE
RS

Weighted 70,719,332 98,728,411
average
shares
outstandin
g - basic3
Weighted 70,719,332 98,728,411
average
shares
outstandin
g -
diluted3

Three Months Ended March 31,
2009 2008
(as adjusted)2
(unaudited)
(in thousands, except per share data)
PER SHARE DATA - basic and diluted:

Loss from continuing operations (basic) $ (0.84 ) $ (0.11 )
Loss from discontinued operations (basic) $ 0.00 $ (0.08 )
Net loss attributable to common stockholders (basic) $ (0.84 ) $ (0.19 )

Loss from continuing operations (diluted) $ (0.84 ) $ (0.11 )
Loss from discontinued operations (diluted) $ 0.00 $ (0.08 )
Net loss attributable to common stockholders (diluted) $ (0.84 ) $ (0.19 )

SELECTED OTHER DATA
Station operating income 1 $ 16,511 $ 28,989
Station operating income margin (% of net revenue) 27.2 % 40.0 %

Station operating income reconciliation:
Net loss attributable to common stockholders $ (59,437 ) $ (18,850 )
Plus: Depreciation and amortization 5,255 3,664
Plus: Corporate selling, general and administrative expenses 5,133 6,407
Plus: Stock-based compensation 483 328
Plus: Equity in (income) loss of affiliated company2 (1,150 ) 2,829
Plus: Provision for income taxes 7,071 8,898
Plus: Noncontrolling interest in income of subsidiaries 871 823
Plus: Interest expense 10,779 17,259
Plus: Impairment of long-lived assets 48,953 -
Plus: Other (income) expense (50 ) 11
Less: Gain on retirement of debt (1,221 ) -
Less: (Income) loss from discontinued operations, net of tax (158 ) 7,821
Less: Interest income (18 ) (201 )
Station operating income $ 16,511 $ 28,989

Adjusted EBITDA4 $ 11,378 $ 22,582

Adjusted EBITDA reconciliation:
Net loss attributable to common stockholders $ (59,437 ) $ (18,850 )
Plus: Depreciation and amortization 5,255 3,664
Plus: Provision for income taxes 7,071 8,898
Plus: Interest expense 10,779 17,259
Less: Interest income (18 ) (201 )
EBITDA $ (36,350 ) $ 10,770
Plus: Equity in (income) loss of affiliated company2 (1,150 ) 2,829
Plus: Noncontrolling interest in income of subsidiaries 871 823
Plus: Impairment of long-lived assets 48,953 -
Plus: Stock-based compensation 483 328
Plus: Other (income) expense (50 ) 11
Less: Gain on retirement of debt (1,221 ) -
Less: (Income) loss from discontinued operations, net of tax (158 ) 7,821
Adjusted EBITDA $ 11,378 $ 22,582

March 31, 2009 December 31, 2008
(unaudited)
SELECTED BALANCE SHEET DATA: (in thousands)
Cash and cash equivalents $ 20,302 $ 22,289
Intangible assets, net $ 893,326 $ 944,969
Total assets $ 1,059,563 $ 1,125,477
Total debt (including current portion) $ 677,198 $ 675,362
Total liabilities $ 808,960 $ 810,002
Total stockholders' equity $ 247,752 $ 313,494
Noncontrolling interest in subsidiaries $ 2,851 $ 1,981

Current Amount Outstanding Applicable Interest Rate (a)
(in thousands)
SELECTED LEVERAGE AND SWAP DATA:
Senior bank term debt (swap matures $ 25,000 5.77 %
6/16/2010) (a)
Senior bank term debt (swap matures $ 25,000 5.97 %
6/16/2012) (a)
Senior bank term debt (at variable rates) $ 39,131 2.88 %
(b)
Senior bank revolving debt (at variable $ 286,500 2.06 %
rates) (b)
8-7/8% senior subordinated notes (fixed $ 101,510 8.88 %
rate)
6-3/8% senior subordinated notes (fixed $ 200,000 6.38 %
rate)
Capital lease obligation $ 57 6.24 %

(a) A total of $50.0
million is
subject to fixed
rate swap
agreements that
became effective
in June 2005.
Under our fixed
rate swap
agreements, we
pay a fixed rate
plus a spread
based on our
leverage ratio,
as defined in
our Credit
Agreement. That
spread is
currently set at
1.50% and is
incorporated
into the
applicable
interest rates
set forth above.

(b) Subject to
rolling three
month and six
month LIBOR plus
a spread
currently at
1.50% and
incorporated
into the
applicable
interest rate
set forth above.
This tranche is
not covered by
swap agreements
described in
footnote (a).

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements represent management's current
expectations and are based upon information available to Radio One at the time
of this release. These forward-looking statements involve known and unknown
risks, uncertainties and other factors, some of which are beyond Radio One's
control, that may cause the actual results to differ materially from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause actual results to
differ materially are described in Radio One`s reports on Form 10-K/A and other
filings with the Securities and Exchange Commission. Radio One does not
undertake any duty to update any forward-looking statements.

Net revenue decreased to approximately $60.7 million for the quarter ended March
31, 2009, from approximately $72.5 million for the same period in 2008, a
decrease of 16.3%. Excluding net revenues of approximately $3.3 million for
Community Connect Inc. ("CCI"), the social online networking company we acquired
in April 2008, net revenue declined 20.8%. The prolonged economic downturn
continued to weaken the demand for advertising in general, and was the primary
driver for the radio markets in which we operate declining 24.2% for the
quarter. We experienced net revenue declines in all but two of our markets, with
considerable declines in our larger markets, including Atlanta, Baltimore,
Houston and Washington, DC. While Reach Media`s net revenue performance was flat
for the quarter, we continued to experience growth in net revenues associated
with our syndicated programs and internet advertising separate from that
generated by CCI. Net revenue is reported net of agency and outside sales
representative commissions of approximately $5.5 million and $7.9 million for
the quarters ended March 31, 2009 and 2008, respectively.

Operating expenses, excluding depreciation and amortization, stock-based
compensation and impairment of long-lived assets decreased to approximately
$49.3 million from approximately $49.9 million for the quarters ended March 31,
2009 and 2008, respectively, a decrease of 1.2%. Approximately $4.0 million of
operating expenses resulted from consolidating the operating results of CCI,
which was acquired in April 2008. More than offsetting the additional operating
expenses from CCI were savings from our various cost cutting initiatives,
primarily reductions in salaries and bonuses, contractor and consultant
spending, marketing and promotions, events spending, legal and professional and
travel and entertainment. In addition, declines in net revenues drove decreased
spending in commissions and national representative fees. Reductions in printing
and publication costs for Giant Magazine helped offset increased spending in our
radio division for syndicated shows on-air talent expenses and music royalties.
Excluding CCI`s spending of approximately $4.0 million, operating expenses
declined 9.2% for the three months ended March 31, 2009, compared to the same
period in 2008.

Stock-based compensation increased to $483,000 from $328,000 for the quarters
ended March 31, 2009 and 2008, respectively, an increase of 47.3%. Stock-based
compensation consists of expenses associated with our January 1, 2006 adoption
of Statement of Financial Accounting Standards ("SFAS") No. 123(R), "Share-Based
Payment," and expenses associated with restricted stock grants. The increase in
stock-based compensation was primarily due to additional stock options and
restricted stock awards associated with the March and April 2008 employment
agreements for the Chief Executive Officer, the Founder and Chairperson and the
Chief Financial Officer. The additional expense was offset in part due to the
decline in the fair value of options and grants, given the decline in the
Company`s stock price, cancellations, forfeitures and the completion of the
vesting period for certain stock option grants.

Depreciation and amortization expense increased to approximately $5.3 million
compared to approximately $3.7 million for the quarters ended March 31, 2009 and
2008, respectively, an increase of 43.4%. The consolidation of CCI`s operating
results accounted for approximately $1.0 million of the increase, and is
attributable to amortization expense associated with certain assets acquired as
part of that acquisition, mainly brand names, non-compete agreements,
advertising agreements and a favorable office lease. An additional $610,000 of
the increase is due to the depreciation of technical assets for our other
internet businesses apart from CCI.

Impairment of long-lived assets was approximately $49.0 million for the quarter
ended March 31, 2009. There was no impairment charge for the quarter ended March
31, 2008. The impairment reflects a non-cash charge recorded for the impairment
of radio broadcasting licenses in 11 of our 16 markets, namely, Charlotte,
Cincinnati, Cleveland, Columbus, Dallas, Houston, Indianapolis, Philadelphia,
Raleigh-Durham, Richmond and St. Louis. The impairment charges are driven by the
prolonged economic downturn and further deterioration to the 2009 radio industry
outlook, which adversely impacted revenue, profitability and terminal values. As
a result, we lowered our financial projections since our 2008 annual and year
end fair value assessments, thus causing this quarter`s impairment.

Interest expense decreased to approximately $10.8 million for the quarter ended
March 31, 2009, from approximately $17.3 million for the same period in 2008, a
decline of 37.5%. The decrease in interest expense was due primarily to interest
savings from early redemptions of the Company`s 87/8 Senior Subordinated Notes
due July 2011, and to a lesser extent, pay downs of outstanding debt on the
Company`s credit facility. Interest savings were also due to the absence of fees
associated with the operation of WPRS-FM pursuant to a local marketing
agreement. We purchased WPRS-FM in June 2008 for approximately $38.0 million in
cash.

Gain on retirement of debt was approximately $1.2 million for the quarter ended
March 31, 2009, compared to no activity for the same period in 2008. The gain on
retirement of debt was due to the redemption of approximately $2.4 million of
the Company`s 87/8% Senior Subordinated Notes during the quarter, at an average
discount of 50.0%. An amount of $101.5 million remained outstanding as of March
31, 2009.

Equity in income of affiliated company was approximately $1.2 million for the
quarter ended March 31, 2009, compared to equity in loss of affiliated company
of approximately $2.8 million for the same period in 2008. The amounts are
attributable to our share of income or losses generated by TV One, LLC ("TV
One") for the quarters ended March 31, 2009 and 2008, respectively. The
Company`s share of TV One`s income or losses is driven by TV One`s current
capital structure and the Company`s ownership levels in the equity securities of
TV One that are currently absorbing its net income or losses. An adjustment was
made to equity in loss of affiliated company for the quarter ended March 31,
2008 to correct for a change in TV One`s capital structure. Pursuant to Staff
Accounting Bulletin ("SAB") 99, "Materiality" and SAB 108, "Considering the
Effects of Prior Year Misstatements when Quantifying Misstatements in Current
Year Financial Statements," we increased the previously reported equity in loss
of affiliated company for the quarter ended March 31, 2008 by $544,000.

For the three months ended March 31, 2009, the provision for income taxes
decreased to approximately $7.1 million from approximately $8.9 million for the
same period in 2008. The tax expense for the quarter ended March 31, 2009 was
less than that for the same period in 2008 due to a reduction in the tax expense
related to indefinite-lived asset amortization and impairment charges for these
assets. The deferred tax assets ("DTAs") and related valuation allowance were
impacted by additional indefinite-lived assets amortization and impairment
charges recorded in the quarter. Except for DTAs in our historically profitable
filing jurisdictions, a full valuation allowance was recorded in both of the
periods ended March 31, 2009 and 2008, as it was determined that more likely
than not, the DTAs would not be realized. As such, what would have otherwise
been a benefit for income taxes for the period ended March 31, 2009, was more
than offset by the valuation allowance recorded. The income tax provision
recorded, including the valuation allowance, resulted in a blended effective tax
rate of (13.7%) for the three months ended March 31, 2009. This rate results
from the combining of an effective quarterly tax rate for Radio One, Inc. of
(12.0%), which has a full valuation allowance for most of its DTAs, separate and
apart from an effective rate for Reach Media of 35.2%, which does not have a
valuation allowance.

Income from discontinued operations, net of tax, was $158,000 for the quarter
ended March 31, 2009, compared to a loss, net of tax, of approximately $7.8
million for the same period in 2008. The income from discontinued operations,
net of tax, for the three months ended March 31, 2009 resulted primarily from
activities for Los Angeles station KRBV-FM, which was sold in March 2008 for
approximately $137.5 million. The loss from discontinued operations, net of tax,
for the three months ended March 31, 2008 was also attributable to the KRBV-FM
sale, and included an approximate $5.1 million impairment charge, and
approximately $1.8 million in other one-time sale related expenses. Discontinued
operations, net of tax, also includes a tax provision in the amount of $89,000
and $830,000 for the three months ended March 31, 2009 and 2008, respectively.

Other pertinent financial information includes capital expenditures of
approximately $1.1 million and $3.2 million for the quarters ended March 31,
2009 and 2008, respectively. Radio One had total debt (net of cash balances) of
approximately $656.9 million and $653.1 million as of March 31, 2009 and
December 31, 2008.

Throughout the quarter ended March 31, 2009, the Company redeemed approximately
$2.4 million of its outstanding 87/8% Senior Subordinated Notes due July 2011 at
an average discount of 50.0%. The redemptions resulted in an approximately $1.2
million gain on the retirement of debt, and an amount of $101.5 million remained
outstanding as of March 31, 2009. Under the terms of the Company`s Credit
Agreement, the Company had approximately $49.3 million in capacity available for
repurchase of the 87/8% Senior Subordinated Notes due July 2011 as of March 31,
2009.

In March 2008, the Company`s board of directors authorized a repurchase of
shares of the Company`s Class A and Class D common stock through December 31,
2009, in an amount of up to $150.0 million, the maximum amount allowable under
the Credit Agreement. The amount and timing of such repurchases will be based on
pricing, general economic and market conditions, and the restrictions contained
in the agreements governing the Company`s credit facilities and subordinated
debt and certain other factors. While $150.0 million is the maximum amount
allowable under the Credit Agreement, in 2005, under a prior board
authorization, the Company utilized approximately $78.0 million to repurchase
common stock leaving capacity of $72.0 million under the Credit Agreement.
During the period ended March 31, 2009, the Company repurchased 22,515 shares of
Class A common stock at an average price of $0.57 and 14.4 million shares of
Class D common stock at an average price of $0.47. There were no shares
repurchased during the period ended March 31, 2008; however, for the year ended
December 31, 2008, the Company repurchased 421,661 shares of Class A common
stock at an average price of $1.32 and 20.0 million shares of Class D common
stock at an average price of $0.58. As of March 31, 2009, the Company had
approximately $53.1 million in capacity available under the 2008 stock
repurchase program.

Supplemental Financial Information:

For comparative purposes, the following more detailed, unaudited and adjusted
statements of operations for the three months ended March 31, 2009 and 2008 are
included. These detailed, unaudited and adjusted statements of operations
include certain reclassifications associated with accounting for discontinued
operations. These reclassifications had no effect on previously reported net
income or loss, or any other previously reported statements of operations,
balance sheet or cash flow amounts. In addition, an adjustment was made to
equity in loss of affiliated company for the three months ended March 31, 2008
to correct for a change in TV One`s capital structure. Pursuant to SAB 99 and
SAB 108, we increased the previously reported equity in loss of affiliated
company for the three month period ended March 31, 2008 by $544,000.

Three Months Ended March 31, 2009
(in thousands, unaudited)

Consolidated Radio Reach Internet/ Publishing Corporate/
One Media Eliminations/ Other

STATEMENT OF OPERATIONS:

NET REVENUE $ 60,671 $ 47,341 $ 10,493 $ 3,824 $ (987 )
OPERATING EXPENSES:
Programming and technical 20,586 13,511 4,862 3,178 (965 )
Selling, general and administrative 23,574 19,547 958 3,559 (490 )
Corporate selling, general and administrative 5,133 - 1,846 - 3,287
Stock-based compensation 483 126 - - 357
Depreciation and amortization 5,255 2,389 981 1,593 292
Impairment of long-lived assets 48,953 48,953 - - -
Total operating expenses 103,984 84,526 8,647 8,330 2,481
Operating (loss) income (43,313 ) (37,185 ) 1,846 (4,506 ) (3,468 )
INTEREST INCOME (18 ) - (11 ) - (7 )
INTEREST EXPENSE 10,779 - - 2 10,777
GAIN ON RETIREMENT OF DEBT (1,221 ) - - - (1,221 )
EQUITY IN INCOME OF AFFILIATED COMPANY (1,150 ) - - - (1,150 )
OTHER (INCOME) EXPENSE, net (50 ) (1 ) - (76 ) 27
(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and discontinued (51,653 ) (37,184 ) 1,857 (4,432 ) (11,894 )
operations
PROVISION FOR INCOME TAXES 7,071 6,417 654 - -
Net (loss) income from continuing operations (58,724 ) (43,601 ) 1,203 (4,432 ) (11,894 )
INCOME FROM DISCONTINUED OPERATIONS, net of tax 158 158 - - -
CONSOLIDATED NET (LOSS) INCOME (58,566 ) (43,443 ) 1,203 (4,432 ) (11,894 )
NONCONTROLLING INTEREST IN INCOME OF SUBSIDIARIES 871 - - - 871
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (59,437 ) $ (43,443 ) $ 1,203 $ (4,432 ) $ (12,765 )

Three Months Ended March 31, 2008
(in thousands, unaudited, as adjusted2)

Consolidated Radio One Reach Media Internet/ Publishing Corporate/
Eliminations/ Other

STATEMENT OF OPERATIONS:

NET REVENUE $ 72,498 $ 62,217 $ 10,466 $ 850 $ (1,035 )
OPERATING EXPENSES:
Programming and technical 19,032 13,698 5,031 1,247 (944 )
Selling, general and administrative 24,477 22,377 854 1,994 (748 )
Corporate selling, general and administrative 6,407 - 1,932 - 4,475
Stock-based compensation 328 167 - 38 123
Depreciation and amortization 3,664 2,235 997 26 406
Total operating expenses 53,908 38,477 8,814 3,305 3,312
Operating income (loss) 18,590 23,740 1,652 (2,455 ) (4,347 )
INTEREST INCOME (201 ) - (41 ) - (160 )
INTEREST EXPENSE 17,259 660 - - 16,599
EQUITY IN LOSS OF AFFILIATED COMPANY2 2,829 - - - 2,829
OTHER EXPENSE (INCOME), net 11 - - 13 (2 )
(Loss) income before provision for income taxes, noncontrolling interest in income of subsidiaries and discontinued (1,308 ) 23,080 1,693 (2,468 ) (23,613 )
operations
PROVISION FOR INCOME TAXES 8,898 8,292 606 - -
Net (loss) income from continuing operations (10,206 ) 14,788 1,087 (2,468 ) (23,613 )
LOSS FROM DISCONTINUED OPERATIONS, net of tax (7,821 ) (7,821 ) - - -
CONSOLIDATED NET (LOSS) INCOME (18,027 ) 6,967 1,087 (2,468 ) (23,613 )
NONCONTROLLING INTEREST IN INCOME OF SUBSIDIARIES 823 - - - 823
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (18,850 ) $ 6,967 $ 1,087 $ (2,468 ) $ (24,436 )

The Company announced during its 2008 fourth quarter conference call that it
would move to an annual conference call schedule as opposed to a quarterly
conference call schedule, effective for the fiscal year 2009.

Radio One, Inc. (www.radio-one.com) is one of the nation's largest radio
broadcasting companies and the largest radio broadcasting company that primarily
targets African-American and urban listeners. Radio One currently owns 53
broadcast stations located in 16 urban markets in the United States.
Additionally, Radio One owns Giant Magazine (www.giantmag.com), and Community
Connect Inc. (www.communityconnect.com), an online social networking company,
which operates a number of branded websites, including BlackPlanet, MiGente, and
Asian Avenue. The Company owns interests in TV One, LLC (www.tvoneonline.com), a
cable/satellite network programming primarily to African-Americans and Reach
Media, Inc. (www.blackamericaweb.com), owner of the Tom Joyner Morning Show and
other businesses associated with Tom Joyner.

Notes:

1 "Station operating income" consists of net loss or income before depreciation
and amortization, corporate expenses, stock-based compensation, equity in income
or loss of affiliated company, provision for income taxes, noncontrolling
interest in income of subsidiaries, interest expense, impairment of long-lived
assets, other income or expense, gain on retirement of debt, and income or loss
from discontinued operations, net of tax. Station operating income is not a
measure of financial performance under generally accepted accounting principles.
Nevertheless we believe station operating income is often a useful measure of a
broadcasting company`s operating performance and is a significant basis used by
our management to measure the operating performance of our stations within the
various markets because station operating income provides helpful information
about our results of operations apart from expenses associated with our physical
plant, income taxes, investments, debt financings, gain on retirement of debt,
corporate overhead, stock-based compensation, impairment of long-lived assets
and income or losses from asset sales. Station operating income is frequently
used as one of the bases for comparing businesses in our industry, although our
measure of station operating income may not be comparable to similarly titled
measures of other companies. Station operating income does not purport to
represent operating income or cash flow from operating activities, as those
terms are defined under generally accepted accounting principles, and should not
be considered as an alternative to those measurements as an indicator of our
performance. A reconciliation of operating income to station operating income
has been provided in this release.

2 An adjustment was made to equity in loss of affiliated company for the three
months ended March 31, 2008 to correct for a change in TV One`s capital
structure. Pursuant to SAB 99 and SAB 108, we increased the previously reported
equity in loss of affiliated company for the three month period ended March 31,
2008 by $544,000.

3 For the three months ended March 31, 2009 and 2008, Radio One had 70,719,332
and 92,728,411 shares of common stock outstanding on a weighted average basis,
both basic and fully diluted for outstanding stock options, respectively.

4 "Adjusted EBITDA" consists of net loss or income plus (1) depreciation,
amortization, provision for income taxes, interest expense, equity in income or
loss of affiliated company, non-controlling interest in income of subsidiaries,
impairment of long-lived assets, stock-based compensation, other income or
expense and income or loss from discontinued operations, net of tax, less (2)
interest income and gain on retirement of debt. Net income before interest
income, interest expense, provision for income taxes, depreciation and
amortization is commonly referred to in our business as "EBITDA." Adjusted
EBITDA and EBITDA are not measures of financial performance under generally
accepted accounting principles. We believe Adjusted EBITDA is often a useful
measure of a company`s operating performance and is a significant basis used by
our management to measure the operating performance of our business because
Adjusted EBITDA excludes charges for depreciation, amortization and interest
expense that have resulted from our acquisitions and debt financing, our taxes,
impairment charges, as well as our equity in loss of our affiliated company,
gain on retirement of debt and any discontinued operations. Accordingly, we
believe that Adjusted EBITDA provides useful information about the operating
performance of our business, apart from the expenses associated with our
physical plant, capital structure or the results of our affiliated company.
Adjusted EBITDA is frequently used as one of the bases for comparing businesses
in our industry, although our measure of Adjusted EBITDA may not be comparable
to similarly titled measures of other companies. Adjusted EBITDA and EBITDA do
not purport to represent operating income or cash flow from operating
activities, as those terms are defined under generally accepted accounting
principles, and should not be considered as alternatives to those measurements
as an indicator of our performance. A reconciliation of net income to EBITDA and
Adjusted EBITDA has been provided in this release.

Radio One, Inc.
Peter D. Thompson, EVP and CFO
301-429-4638

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