Emmis Completes Sale of Controlling Interest in Three Radio Stations to GTCR; Nasdaq Notifies Emmis that Class A Common Shares Fall Below Minimum Bid Price

INDIANAPOLIS, Sept. 1, 2011 /PRNewswire/ — Emmis Communications Corporation
(Nasdaq: EMMS) today announced it has completed the transfer of WKQX-FM (101.1
MHz, Chicago, IL), WLUP-FM (97.9 MHz, Chicago, IL) and WRXP-FM (101.9 MHz, New
York, NY) to Merlin Media LLC (“Merlin Media”), and the sale of a controlling
interest in Merlin Media to Chicago-based private equity firm GTCR and Randy
Michaels.

Emmis received approximately $120 million in cash proceeds from the sale of the
stations, net of transaction expenses, and continues to own $28.7 million of
preferred equity and 20.6% of the common equity interests in Merlin Media. The
net cash proceeds were used to repay approximately 38% of the company’s term
loans under its senior credit facility.

“While it is difficult to part with these stations, we are pleased to remain
involved as an investor in Merlin Media. The proceeds of the sale allow us to
significantly delever the company and evaluate a variety of exciting
opportunities for the next era of growth at Emmis,” said Jeff Smulyan, Chairman
& CEO of Emmis.

The transaction was announced on June 21, 2011. Merlin Media began programming
the stations under a Local Marketing Agreement (LMA) on July 15, 2011.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Wiley Rein LLP served as legal
counsel and Moelis & Company served as financial advisor to Emmis.

Late Wednesday, Emmis received notification from the Nasdaq Stock Market
(“Nasdaq”) that the Company’s Class A Common Stock had closed below the minimum
$1.00 per share bid requirement for 30 consecutive business days (starting July
19) and therefore is not in compliance with Nasdaq Marketplace Rule 5450(a)(1)
(the “Minimum Bid Rule”). The Company has until February 27, 2012, to regain
compliance with the Minimum Bid Price Rule. During this period, the Company’s
Class A Common Stock will continue to trade on the Nasdaq Global Select Market.

“The notice from Nasdaq was not a surprise, but the timing is ironic coming the
very day before we closed the Merlin transaction and repaid approximately $120
million of our debt. We are optimistic that the performance of our businesses
and our continued efforts to rationalize our balance sheet will enable us to
achieve compliance with the Minimum Bid Price Rule before February 27, 2012,”
said Smulyan.

If at any time before February 27, 2012, the bid price of the Company’s Class A
Common Stock closes at $1.00 per share or more for a minimum of 10 consecutive
business days, Nasdaq will notify the Company that it has achieved compliance
with the Minimum Bid Price Rule. If the Company does not regain compliance with
the Minimum Bid Price Rule by February 27, 2012, Nasdaq will notify the Company
that its Class A Common Stock will be delisted from the Nasdaq Global Select
Market. Nasdaq rules would then permit the Company to appeal any delisting
determination by the Nasdaq staff to a Listing Qualifications Panel.

The Company intends to actively evaluate and monitor the bid price for its Class
A Common Stock between now and February 27, 2012, and consider implementation of
various options available to the Company if its Class A Common Stock does not
trade at a level that is likely to regain compliance.

About Emmis Communications (Nasdaq: EMMS)

Emmis Communications Corporation is a diversified media company, principally
focused on radio broadcasting. Emmis operates the 8th largest publicly traded
radio portfolio in the United States based on total listeners. Emmis owns 18 FM
and two AM radio stations in New York, Los Angeles, St. Louis, Austin (Emmis has
a 50.1% controlling interest in Emmis’ radio stations located there),
Indianapolis and Terre Haute, IN.

SOURCE Emmis Communications Corporation