Spanish Broadcasting System, Inc. Reports Results for the Second Quarter 2008

Spanish Broadcasting System, Inc. (the “Company” or “SBS”) (Nasdaq: SBSA) today reported financial results for the three- and six-month periods ended June 30, 2008.
Discussion and Results
Raul Alarcon, Jr., Chairman and CEO, commented, “During the second quarter we continued to execute on our strategy to strengthen our diversified media platform and expand our share of the rapidly growing Hispanic population. While MegaTV continued to generate robust growth, our overall results were impacted by decreased revenues at our radio group, in line with our expectations. Due to the economic slowdown, the advertising environment weakened further during the quarter, with key categories seeing reductions in spending. As a result, we are tightening our cost controls, while adjusting our sales and marketing efforts. Despite difficult near-term business conditions, we are continuing to build our audiences in the nation’s largest Hispanic markets, which bodes well for the future. We fully anticipate the recent steps taken to expand the distribution of MegaTV will lead to a considerable increase in viewership. Further, our investment in programming at our radio platform has provided increased market share and greater penetration among the U.S. Hispanic population. We remain committed to capitalizing on our solid content and growing distribution platform to grow our audiences and our share of advertising across our footprint.”

Quarter Results

For the quarter ended June 30, 2008, consolidated net revenue totaled
$45.2 million compared to $47.9 million for the same prior year period,
resulting in a decrease of $2.7 million or 6%.  This consolidated decrease was
mainly attributable to our radio segment which had a net revenue decrease of
$4.3 million or 9%, offset by an increase in our television segment net
revenue of $1.6 million or 60%.  Our radio segment had a decrease in net
revenue primarily due to lower local and national sales. The decrease in local
sales occurred primarily in our Miami, Los Angeles, Chicago, and New York
markets, offset by an increase in our Puerto Rico market. The decrease in
national sales occurred in our New York and Miami markets, offset by an
increase in our Los Angeles and San Francisco markets. Our television segment
net revenue growth was primarily due to increases in local spot sales,
subscriber revenue related to the DIRECTV affiliation agreements, barter
sales, and local integrated sales, offset by a decrease in paid programming
sales.

Operating (loss) income totaled $(389.3) million compared to $11.1 million
for the same prior year period.  The decrease was primarily related to the
impairment of FCC broadcasting licenses.  Please refer to the Impairment of
FCC Broadcasting Licenses section for a detailed discussion.

Operating income before depreciation and amortization, gain on the
disposal of assets, net, and impairment of FCC broadcasting licenses, a
non-GAAP measure, totaled $8.4 million compared to $12.2 million for the same
prior year period, resulting in a decrease of $3.8 million.  This decrease was
primarily attributed to the decrease of $1.6 million in our radio segment, an
increased loss of $1.6 million in our television segment, and an increase of
$0.6 million in corporate expenses.  Please refer to the Segment Data and
Non-GAAP Financial Measures section for definitions and a reconciliation of
GAAP to non-GAAP financial measures.

(Loss) income before income taxes totaled $(394.6) million compared to
$6.3 million for the same prior year period.

Six-month Results

For the six-months ended June 30, 2008, consolidated net revenue totaled
$81.6 million compared to $86.8 million for the same prior year period,
resulting in a decrease of $5.2 million or 6%.  This consolidated decrease was
mainly attributable to our radio segment which had a net revenue decrease of
$8.1 million or 10%, offset by an increase in our television segment net
revenue of $2.9 million or 61%.  Our radio segment had a decrease in net
revenue primarily due to lower local and national sales. The decrease in local
sales occurred primarily in our Miami, Los Angeles, New York, and Chicago
markets, offset by an increase in our Puerto Rico and San Francisco markets.
The decrease in national sales occurred in our Miami, New York and Chicago
markets, offset by increase in our Los Angeles, San Francisco, and Puerto Rico
markets. Our television segment net revenue growth was primarily due to
increases in subscriber revenue related to the DIRECTV affiliation agreements,
local spot sales, barter sales, and local integrated sales.

Operating (loss) income totaled $(392.0) million compared to $17.1 million
for the same prior year period.  The decrease was primarily related to the
impairment of FCC broadcasting licenses.  Please refer to the Impairment of
FCC Broadcasting Licenses section for a detailed discussion.

Operating income before depreciation and amortization, gain on the
disposal of assets, net, and impairment of FCC broadcasting licenses, a
non-GAAP measure, totaled $7.0 million compared to $19.3 million for the same
prior year period, resulting in a decrease of $12.3 million.  This decrease
was primarily attributed to the decrease of $9.4 million in our radio segment,
an increased loss of $2.3 million in our television segment, and an increase
of $0.6 million in corporate expenses.  Please refer to the Segment Data and
Non-GAAP Financial Measures section for definitions and a reconciliation of
GAAP to non-GAAP financial measures.

(Loss) income before income taxes totaled $(400.5) million compared to
$9.6 million for the same prior year period.

Impairment of FCC Broadcasting Licenses

During the three-months ended June 30, 2008, we recorded an impairment
loss of approximately $396.3 million related to the FCC broadcasting licenses
for certain individual stations in our Los Angeles, San Francisco, Puerto
Rico, Miami and New York markets as a result of our SFAS No. 142 impairment
testing. The primary contributing factors that caused the impairment loss were
a decrease in advertising revenue growth projections for the broadcasting
industry, an increase in the discount rate and a decline in cash flow
multiples for recent station sales.

Third Quarter 2008 Outlook

Due to the limited visibility resulting from the current economic
environment and the industry-wide advertising decline, we find it a prudent
approach to temporarily suspend our quarterly guidance at this time.

Second Quarter 2008 Conference Call

We will host a conference call to discuss second quarter 2008 financial
results on August 7, 2008 at 2:00 p.m. ET.  To access the teleconference,
please dial (973) 935-2407 ten minutes prior to the start of the call and
reference passcode 54854071.

A live webcast of the teleconference will be available on the investor
section of our corporate Website at
www.spanishbroadcasting.com/webcasts.shtml .

A replay of the teleconference will be available via telephone through
August 14, 2008. U.S. participants can access the replay by dialing
(800) 642-1687 and international participants can dial (706) 645-9291. The
passcode for the replay is 54854071.  A webcast of the teleconference will be
archived on the Company's Web site for seven days.

About Spanish Broadcasting System, Inc.

Spanish Broadcasting System, Inc. is the largest publicly traded
Hispanic-controlled media and entertainment company in the United States.  SBS
owns and/or operates 21 radio stations located in the top Hispanic markets of
New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico. The
Company also owns and operates MegaTV, a television operation serving the
South Florida market with national distribution through DIRECTV. SBS also
produces live concerts and events throughout the U.S. and Puerto Rico.  In
addition, the Company operates www.LaMusica.com, a bilingual Spanish-English
online site providing content related to Latin music, entertainment, news and
culture. The Company's corporate Web site can be accessed at
www.spanishbroadcasting.com .

  (Financial Table Follows)

Below are the Unaudited Condensed Consolidated Statements of Operations
and other information as of and for the three- and six-months ended June 30,
2008 and 2007.

Three-Months Ended  Six-Months Ended
June 30,   June 30,
Amounts in thousands 20082007   20082007
(Unaudited)(Unaudited)
Net revenue$45,180  47,871$81,613  86,808
Station operating expenses  33,087  32,574 67,330  60,775
Corporate expenses   3,672   3,112  7,265   6,715
Depreciation and amortization1,442   1,105  2,804   2,242
Gain on the disposal of assets, net (2) (1)(5) (1)
Impairment of FCC broadcasting
licenses  396,252 -  396,252 -
Operating (loss) income(389,271) 11,081   (392,033) 17,077
Interest expense, net   (5,315) (4,735)   (10,399) (9,424)
Other income, net  -   -1,928   1,960

(Loss) income before income taxes$(394,586)  6,346  $(400,504)  9,613

Non-GAAP Financial Measures

Included below are tables that reconcile the three- and six-month ended
reported results in accordance with Generally Accepted Accounting Principles
(GAAP) to Non-GAAP results. The tables reconcile Operating (Loss) Income to
Operating Income before Depreciation and Amortization, Gain on the Disposal of
Assets, net, and Impairment of FCC Broadcasting Licenses.

UNAUDITED GAAP REPORTED RESULTS RECONCILED TO NON-GAAP RESULTS

Three-Months Ended June 30,   %
(Amounts in millions)   2008  2007Change

Operating (Loss) Income   $(389.3) 11.1   (3607%)
add back: Gain on the disposal of
assets, net  - -
add back: Impairment of FCC
broadcasting licenses  396.3   -
add back: Depreciation & amortization 1.4   1.1
Operating Income before Depreciation
& Amortization,
Gain on the Disposal of Assets, net,
and Impairment of FCC Broadcasting Licenses $8.4  12.2 (31%)

UNAUDITED GAAP REPORTED RESULTS RECONCILED TO NON-GAAP RESULTS

Six-Months Ended June 30,%
(Amounts in millions)   2008  2007   Change

Operating (Loss) Income   $(392.0) 17.1  (2392%)
add back: Gain on the disposal of
assets, net  - -
add back: Impairment of FCC
broadcasting licenses  396.2   -
add back: Depreciation & amortization 2.8   2.2
Operating Income before Depreciation
& Amortization,
Gain on the Disposal of Assets, net,
and Impairment of FCC Broadcasting Licenses $7.0  19.3(64%)

Operating Income before Depreciation and Amortization, Gain on the
Disposal of Assets, net, and Impairment of FCC Broadcasting Licenses are not
measures of performance or liquidity determined in accordance with GAAP in the
United States. However, we believe that these measures are useful in
evaluating our performance because they reflect a measure of performance for
our stations before considering costs and expenses related to our capital
structure and dispositions. These measures are widely used in the broadcast
industry to evaluate a company’s operating performance and are used by us for
internal budgeting purposes and to evaluate the performance of our stations,
segments, management and consolidated operations. However, these measures
should not be considered in isolation or as substitutes for Operating Income,
Net Income (Loss), Cash Flows from Operating Activities or any other measure
used in determining our operating performance or liquidity that is calculated
in accordance with GAAP. In addition, because Operating Income before
Depreciation and Amortization, Gain on the Disposal of Assets, net, and
Impairment of FCC Broadcasting Licenses, is not calculated in accordance with
GAAP, it is not necessarily comparable to similarly titled measures used by
other companies.

Segment Data

We have two reportable segments: radio and television.  The following
summary table presents separate financial data for each of our operating
segments (in thousands):

Three-Months Ended
June 30, Change
2008 2007 $%

Net revenue:
Radio   $41,008   45,256(4,248) (9%)
Television4,1722,615 1,557  60%
Consolidated  $45,180   47,871(2,691) (6%)
Engineering and programming expenses:
Radio   $10,2369,068 1,168  13%
Television5,2283,309 1,919  58%
Consolidated  $15,464   12,377 3,087  25%
Selling, general and administrative
expenses:
Radio   $14,648   18,494(3,846)(21%)
Television2,9751,703 1,272  75%
Consolidated  $17,623   20,197(2,574)(13%)
Operating income before depreciation
and amortization, gain on the disposal
of assets, net, and impairment
of FCC broadcasting licenses:
Radio   $16,124   17,694(1,570) (9%)
Television   (4,031)  (2,397)   (1,634) 68%
Corporate(3,672)  (3,112) (560) 18%
Consolidated   $8,421   12,185(3,764)(31%)
Depreciation and amortization:
Radio  $784  71173  10%
Television  277  128   149 116%
Corporate   381  266   115  43%
Consolidated   $1,4421,105   337  30%
Gain on the disposal of assets, net:
Radio   $(2)  (1)   (1)100%
Television   - - 0%
Corporate- - 0%
Consolidated  $(2)  (1)   (1)100%
Impairment of FCC broadcasting licenses:
Radio  $379,415  - 379,415 100%
Television   16,837  -  16,837 100%
Corporate   -- - 0%
Consolidated $396,252  - 396,252 100%
Operating (loss) income:
Radio $(364,073)  16,984  (381,057)  (2244%)
Television  (21,145)  (2,525)  (18,620)737%
Corporate(4,053)  (3,378) (675) 20%
Consolidated$(389,271)  11,081  (400,352)  (3613%)

Six-Months Ended
June 30, Change
2008 2007 $%

Net revenue:
Radio   $74,034   82,088(8,054)(10%)
Television7,5794,720 2,859  61%
Consolidated  $81,613   86,808(5,195) (6%)
Engineering and programming expenses:
Radio   $20,152   17,910 2,242  13%
Television9,9666,761 3,205  47%
Consolidated  $30,118   24,671 5,447  22%
Selling, general and administrative
expenses:
Radio   $31,870   32,717  (847) (3%)
Television5,3423,387 1,955  58%
Consolidated  $37,212   36,104 1,108   3%
Operating income before depreciation
and amortization, gain on the disposal
of assets, net, and impairment
of FCC broadcasting licenses:
Radio   $22,012   31,461(9,449)(30%)
Television   (7,729)  (5,428)   (2,301) 42%
Corporate(7,265)  (6,715) (550)  8%
Consolidated   $7,018   19,318   (12,300)(64%)
Depreciation and amortization:
Radio$1,5801,437   143  10%
Television  444  270   174  64%
Corporate   780  535   245  46%
Consolidated   $2,8042,242   562  25%
Gain on the disposal of assets, net:
Radio   $(5)  (1)   (4)400%
Television  -- - 0%
Corporate   -- - 0%
Consolidated  $(5)  (1)   (4)400%
Impairment of FCC broadcasting licenses:
Radio  $379,415  - 379,415 100%
Television   16,837  -  16,837 100%
Corporate   -- - 0%
Consolidated $396,252  - 396,252 100%
Operating (loss) income:
Radio $(358,978)  30,025  (389,003)  (1296%)
Television  (25,010)  (5,698)  (19,312)339%
Corporate(8,045)  (7,250) (795) 11%
Consolidated$(392,033)  17,077  (409,110)  (2396%)

Selected Unaudited Balance Sheet Information and Other Data:

As of June 30,
(Amounts in thousands)  2008

Cash and cash equivalents $39,010

Total assets $527,095

Senior credit facilities term loan due 2012  $314,437
Non-interest bearing note due 2009 17,781
Other debt  7,706
Total debt $339,924

Series B preferred stock  $89,932

For the Six-Months Ended June 30,
(Amounts in thousands)   2008   2007

Capital expenditures   $12,379  4,410
Cash paid for income taxes, net$10-

“

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