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

Spanish Broadcasting
System, Inc. (the “Company” or “SBS”) (Nasdaq: SBSA) today reported financial
results for the three- and nine-month periods ended September 30, 2008.

Discussion and Results

Raul Alarcon Jr., Chairman and CEO, commented, “Our third quarter
financial performance reflects the impact of a slowing economy and an
industry-wide weakness in advertising demand, offset in part by strong growth
at MegaTV. During the quarter we aggressively lowered expenses, streamlined
personnel and eliminated any unnecessary discretionary spending in order to
stabilize operating performance in anticipation of what is expected to be a
prolonged economic downturn. We fully expect to realize the benefits of these
savings in the coming quarters as we continue to strengthen the leadership
position of our heritage radio brands in the nation’s top Hispanic markets.
At MegaTV, we continue to gain traction among Hispanic audiences, as well as
blue-chip advertising partners, as a result of our unique programming and
expanded distribution footprint.  Looking ahead, we remain committed to
capitalizing on our assets to expand on our presence among the millions of
Hispanic households we serve, while exploring all avenues to monetize our
audience shares for the benefit of our shareholders.”

Quarter Results

For the quarter ended September 30, 2008, consolidated net revenue totaled
$41.3 million compared to $46.8 million for the same prior year period,
resulting in a decrease of $5.5 million or 12%.  This consolidated decrease
was attributable to our radio segment which had a net revenue decrease of $7.9
million or 18%, offset by an increase in our television segment net revenue of
$2.4 million or 99%.  Our radio segment had a decrease in net revenue
primarily due to lower local and national sales. The decrease in local sales
occurred in our Miami, Los Angeles, New York and Chicago markets, offset by an
increase in our Puerto Rico market. The decrease in national sales occurred
throughout all of our 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.

Operating income totaled $4.0 million compared to $11.9 million for the
same prior year period.  The decrease in operating income was mainly due to
the decrease in consolidated net revenue and restructuring costs of $2.2
million, offset by a decrease in corporate expenses.  Please refer to the
Restructuring Costs section for a detailed discussion.

Operating income before depreciation and amortization, gain on the
disposal of assets, net, and impairment of FCC broadcasting licenses and
restructuring costs, a non-GAAP measure, totaled $8.0 million compared to
$13.1 million for the same prior year period, resulting in a decrease of $5.1
million.  This decrease was primarily attributed to the decrease of $6.6
million in our radio segment, offset by a decrease of $1.2 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.

Income before income taxes totaled $1.9 million compared to $7.1 million
for the same prior year period.

Nine-month Results

For the nine-months ended September 30, 2008, consolidated net revenue
totaled $122.9 million compared to $133.6 million for the same prior year
period, resulting in a decrease of $10.7 million or 8%.  This consolidated
decrease was attributable to our radio segment which had a net revenue
decrease of $16.0 million or 13%, offset by an increase in our television
segment net revenue of $5.3 million or 74%.  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 increases in our Puerto Rico and San Francisco
markets. The decrease in national sales occurred in our Miami, Chicago, and
New York markets, offset by an increase in our Los Angeles market. 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 $(388.1) million compared to $29.0 million
for the same prior year period.  The decrease was primarily related to the
impairment of FCC broadcasting licenses and restructuring costs.  Also
contributing to the decrease in operating (loss) income was an increase in our
television segment’s operating expenses and a decrease in our radio segment’s
net revenue.  Please refer to the Restructuring Costs and Impairment of FCC
Broadcasting Licenses sections for detailed discussions.

Operating income before depreciation and amortization, gain on the
disposal of assets, net, and impairment of FCC broadcasting licenses and
restructuring costs, a non-GAAP measure, totaled $15.0 million compared to
$32.4 million for the same prior year period, resulting in a decrease of $17.4
million.  This decrease was primarily attributed to the decrease of $16.1
million in our radio segment, an increased loss of $2.0 million in our
television segment, offset by a decrease 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 $(398.6) million compared to
$16.7 million for the same prior year period.

Restructuring Costs

Under a restructuring plan to reduce expenses throughout the Company, we
incurred costs totaling $2.2 million related to the termination of various
programming contracts and personnel.  We believe that the restructuring plan
and other cost-cutting measures will likely result in cost savings of
approximately $11.0 to $13.0 million over the next twelve-months. This range
excludes savings from our significant reduction of cash advertising and
marketing expenses.  In addition, we will review other cost-cutting measures,
on an as-needed basis, as we continue to evaluate the scope and duration of
the current economic slowdown and its continued impact on our operations.

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.

Recent Developments

Draw Down of Revolving Credit Facility

On October 3, 2008, we requested to draw down $25.0 million from our $25.0
million revolver facility under the senior secured credit facility agreement,
dated as of June 10, 2005, among us, Merrill Lynch, Pierce Fenner & Smith,
Incorporated, as syndication agent, Wachovia Bank, National Association, as
documentation agent, Lehman Commercial Paper Inc. (”Lehman”), as
administrative agent, and various lenders from time to time. On October 8,
2008, we only received an aggregate of $15.0 million of the $25.0 million
revolver as a result of Lehman’s failure to fund its $10.0 million portion of
the facility due to its bankruptcy filing.

The $15.0 million drawn on October 8, 2008 currently bears interest at a
rate equal to 1.0% over the base prime rate unless converted to a LIBOR-based
term rate. As of October 8, 2008, the applicable margin of the revolving
credit facility was (i) 2.00% per annum for Eurodollar loans and (ii) 1.00%
per annum for base rate loans.

On October 24, 2008, the draw down on the revolver was used, with other
funds, to repay the non-interest bearing secured promissory note of $18.5
million. Please refer to the Early Extinguishment of the $18.5 million Non-
interest Bearing Promissory Note” section below for further details.

Dividend Payment on the Series B Preferred Stock

Under the terms of our Series B preferred stock, we are required to pay
dividends at a rate of 10 3/4 % per year of the $1,000 liquidation preference
per share of Series B preferred stock.  From October 30, 2003 to October 15,
2008, we had the option to pay these dividends in either cash or additional
shares of Series B preferred stock.   On October 15, 2008, we paid our
quarterly dividend in additional shares of our Series B preferred stock.
After October 15, 2008, we are required to pay the quarterly dividends on our
Series B preferred stock in cash.

NASDAQ Delisting Letter and Temporary Postponement

On October 22, 2008, we received a notification letter (the “Letter”) from
The Nasdaq Stock Market (”NASDAQ”), notifying us that NASDAQ has suspended,
for a three-month period, effective October 16, 2008, the enforcement of the
rule requiring a minimum bid price and market value of publicly held shares
(the “Rule”). NASDAQ has said that it will not take any action to delist any
security for these concerns during the suspension period. NASDAQ has stated
that, given the current extraordinary market conditions, this suspension will
remain in effect through Friday, January 16, 2009 and that the Rule will be
reinstated on Monday, January 19, 2009, and the first relevant trade date will
be Tuesday, January 20, 2009.

We previously received a Staff Deficiency Letter from NASDAQ on August 20,
2008 indicating that the minimum bid price of our common stock had fallen
below $1.00 for 30 consecutive trading days, and that it was therefore not in
compliance with NASDAQ Marketplace Rule 4450(b). The notice further provided
that in accordance with the NASDAQ Marketplace Rules, we would be provided 180
calendar days, or until February 17, 2009, to regain compliance with the
minimum bid price requirement.

We had 124 calendar days remaining in our compliance period as of October
16, 2008, the effective date of NASDAQ’s suspension. Upon reinstatement of the
rules on January 19, 2009, we will have the same number of days remaining, or
until May 26, 2009, to regain compliance. We may regain compliance, either
during the suspension or during the compliance period resuming after the
suspension, by achieving a $1.00 closing bid price for a minimum of 10
consecutive trading days.

During this interim period, our common stock is expected to continue to
trade on The NASDAQ Global Market. If compliance with Marketplace Rule 4450(b)
cannot be demonstrated by May 26, 2009, our common stock will be subject to
delisting from The NASDAQ Global Market.

We intend to use all reasonable efforts to maintain the listing of our
common stock on the Nasdaq Global Market, but there can be no guarantee that
we will regain compliance with the continued listing requirements, or will be
able to demonstrate a plan to sustain compliance in order to avoid delisting
from the Nasdaq Global Market.

Early Extinguishment of the $18.5 million Non-interest Bearing Promissory
Note

On October 24, 2008, we entered into a letter agreement with BC Media
Funding Company II, LLC, as agent for Media Funding Company, LLC, successors
in interest to the rights of WDLP Broadcasting Company, LLC and Robin
Broadcasting Company, LLC, for the early extinguishment of the $18,500,000
non-interest bearing promissory note due January 2, 2009 (the “Note”).

Pursuant to the letter agreement, we received a discount of $150,000 and
only paid $18,350,000 (the “Payoff Amount”) in full satisfaction due under the
Note.  We used cash on hand and $15.0 million of proceeds drawn down from the
revolving credit facility to satisfy the Payoff Amount.

In addition, on October 24, 2008, we were released from all obligations
and liabilities, security interests, pledges, liens, mortgages, assignments or
other interests granted by us and our subsidiaries pursuant to the security
agreement, the pledge agreement, the Note and any and all documentation
related to the loan documents.

Fourth Quarter 2008 Outlook

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

Third Quarter 2008 Conference Call

We will host a conference call to discuss third quarter 2008 financial
results on November 6, 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 68124552.

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
November 13, 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 68124552.  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. 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, including the #1 Spanish-language radio station
in America, WSKQ-FM in New York City, as well as 4 of the Top 6 rated radio
stations airing the Tropical, Mexican Regional, Spanish Adult Contemporary and
Hurban format genres. The Company also owns and operates Mega TV, a television
operation serving the South Florida market, owns and operates a station in
Miami-Ft. Lauderdale DMA (WSBS) Ch. 22, and an affiliate in West Palm Beach,
Fl (Ch. 57/Comcast 231). Mega TV also has national distribution in the US
through DirecTV Mas (Ch. 405). The channel can also be seen in Puerto Rico on
DIRECTV (Ch. 169), and through affiliate WSJU (Ch. 30). 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 nine-months ended September
30, 2008 and 2007.

Three-MonthsNine-Months
Ended Sept. 30,Ended Sept. 30,
Amounts in thousands 20082007  2008 2007
(Unaudited)(Unaudited)

Net revenue   $41,253  46,772   $122,866  133,580
Station operating expenses 30,577  29,772 97,907   90,547
Corporate expenses  2,707   3,881  9,972   10,596
Depreciation and amortization   1,792   1,194  4,5963,436
(Gain) loss on the disposal of
assets, net   (5) 51(10)  50
Impairment of FCC broadcasting
licenses and restructuring costs   2,199 -  398,451  -
Operating income (loss)  3,983  11,874   (388,050)  28,951
Interest expense, net  (5,686) (4,789)   (16,085) (14,213)
Changes in fair value of derivative
instrument 3,585 -3,585  -
Other income, net -25  1,9281,985

Income (loss) before income taxes  $1,882   7,110  $(398,622)  16,723
Income tax expense (benefit)2,325   4,569(98,207)  10,778
Net (loss) income$(443)  2,541  $(300,415)   5,945

Dividends on Series B preferred stock  (2,417) (2,417)(7,251)  (7,251)
Net (loss) income applicable to
common stockholders$(2,860)124  $(307,666)  (1,306)

Net loss per common share:
Basic and Diluted   $(0.04)-   $(4.25)   (0.02)

Weighted average common shares
outstanding:
Basic   72,418  72,381 72,409   72,381
Diluted 72,418  72,386 72,409   72,381

Non-GAAP Financial Measures

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

UNAUDITED GAAP REPORTED RESULTS RECONCILED TO NON-GAAP RESULTS

Three-Months
Ended Sept. 30,  %
(Amounts in millions)   20082007Change

Operating Income$4.011.9 (66%)
add back: Gain on the disposal of
assets, net -   -
add back: Impairment of FCC
broadcasting licenses and
restructuring cost  2.2 -
add back: Depreciation & amortization1.8 1.2
Operating Income before Depreciation
& Amortization,
Gain on the Disposal of Assets, net,
and Impairment of
FCC Broadcasting Licenses and
Restructuring Costs$8.013.1 (39%)

UNAUDITED GAAP REPORTED RESULTS RECONCILED TO NON- GAAP RESULTS

Nine-Months
Ended Sept. 30,%
(Amounts in millions) 2008 2007  Change

Operating (Loss) Income  $(388.1)   29.0
add back: Gain on the disposal of
assets, net -   -
add back: Impairment of FCC
broadcasting licenses and
restructuring cost398.5 -
add back: Depreciation & amortization4.6 3.4
Operating Income before Depreciation &
Amortization,
Gain on the Disposal of Assets, net,
and Impairment of
FCC Broadcasting Licenses and
Restructuring Costs$15.0   32.4  (54%)

Operating Income before Depreciation and Amortization, Gain on the
Disposal of Assets, net, and Impairment of FCC Broadcasting Licenses and
Restructuring costs 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 (Loss) before Depreciation and Amortization, Gain on the
Disposal of Assets, net, and Impairment of FCC Broadcasting Licenses and
Restructuring costs, 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
Sept. 30,   Change
2008 2007$   %

Net revenue:
Radio  $36,411   44,333   (7,922)   (18%)
Television   4,8422,4392,403 99%
Consolidated$41,253   46,772   (5,519)   (12%)
Operating income before depreciation
and amortization, gain on the
disposal of assets, net, and
impairment of FCC broadcasting
licenses and restructuring costs:
Radio  $13,394   20,025   (6,631)   (33%)
Television  (2,718)  (3,025) 307(10%)
Corporate   (2,707)  (3,881)   1,174(30%)
Consolidated $7,969   13,119   (5,150)   (39%)
Depreciation and amortization:
Radio $817  716  101 14%
Television 578  170  408240%
Corporate  397  308   89 29%
Consolidated $1,7921,194  598 50%
(Gain) loss on the disposal of
assets, net:
Radio  $(5)  51  (56)  (110%)
Television  –0%
Corporate   –0%
Consolidated$(5)  51  (56)  (110%)
Impairment of FCC broadcasting
licenses and restructuring costs:
Radio   $2,191  -  2,191100%
Television   8  -  8100%
Corporate  —0%
Consolidated $2,199  -  2,199100%
Operating income (loss):
Radio  $10,391   19,258   (8,867)   (46%)
Television  (3,304)  (3,195)(109) 3%
Corporate   (3,104)  (4,189)   1,085(26%)
Consolidated $3,983   11,874   (7,891)   (66%)

Nine-Months Ended
Sept. 30, Change
2008  2007$%
Net revenue:
Radio $110,445  126,421   (15,976)   (13%)
Television  12,4217,159 5,262 74%
Consolidated   $122,866  133,580   (10,714)(8%)
Operating income before depreciation
and amortization, gain on the
disposal of assets, net, and
impairment of FCC broadcasting
licenses and restructuring costs:
Radio  $35,406   51,486   (16,080)   (31%)
Television (10,447)  (8,453)   (1,994)24%
Corporate   (9,972) (10,596)  624 (6%)
Consolidated$14,987   32,437   (17,450)   (54%)
Depreciation and amortization:
Radio   $2,3972,153   244 11%
Television   1,022  440   582132%
Corporate1,177  843   334 40%
Consolidated $4,5963,436 1,160 34%
(Gain) loss on the disposal of
assets, net:
Radio $(10)  50   (60)  (120%)
Television — -0%
Corporate  — -0%
Consolidated   $(10)  50   (60)  (120%)
Impairment of FCC broadcasting
licenses and restructuring costs:
Radio $381,606  – 381,606100%
Television  16,845  -  16,845100%
Corporate  — -0%
Consolidated   $398,451  – 398,451100%
Operating income (loss):
Radio$(348,587)  49,283  (397,870)  (807%)
Television (28,314)  (8,893)  (19,421)   218%
Corporate  (11,149) (11,439)  290 (3%)
Consolidated  $(388,050)  28,951  (417,001) (1440%)

Selected Unaudited Balance Sheet Information and Other Data:

As of Sept. 30,
(Amounts in thousands)  2008

Cash and cash equivalents  $34,005

Total assets  $520,283

Senior secured credit facility term
loan due 2012$313,625
Non-interest bearing note due 2009  18,137
Other debt   7,599
Total debt  $339,361

Series B preferred stock   $91,946

Total stockholders’ deficit$(6,923)

Total capitalization  $424,384

For the Nine-Months Ended Sept. 30,
(Amounts in thousands)  2008  2007

Capital expenditures   $15,591   6,731
Cash paid for income taxes, net$22 -
“

• Spanish Broadcasting System, Inc. Reports Results for the Third Quarter 2009
• Popular Mega-Series ‘Gabriel’ Coming to DVD
• Mega TV Announces Important Changes to its Local Channel 22 and the Network
• Spanish Broadcasting system announced today that it signed multi-market affiliation deals with HDTV, Inc to air Miami-based Mega TV in Tampa, Fla., Charleston, N.C. and Palm Springs, Ca.
• Mega TV Signs Multi-market Affiliation Agreements with HDTV Inc.
• Fernando Del Rincón to Be Recognized At The 4th Annual Latin Pride Awards
• Spanish Broadcasting System (“SBS”) announced today that Mega TV will cover Juanes’ “Paz sin Fronteras” concert in Havana on Sunday, September 20 from 6:00-9:00 P.M. (ET) and 7:00-10:00 P.M. (PT).
• Polito Vega Celebrates 50 Years on the Radio with a Two-Day Concert Series
• Rapper Kilo to Appear in Lamusica.com
• Mega TV to Debut ‘Los Implicados’ -Alfonso ‘Poncho de Anda’ Named Co-Host of New ‘Infotainment’ Program
• Mega TV Expands in Key Markets with New Affiliation Agreements
• Mega TV Signs Affiliation Agreement with Cranston Acquisition, LLC., for Las Vegas/Laughlin, Nevada: Financial News – Yahoo! Finance
• Mega TV Added to The ‘Guinness Book of World Records’
• KLAX La Raza 97.9 FM to Debut Popular Morning Show ‘El Chulo de la Manana’ in Los Angeles
• Mega TV Launches National Show and Online Magazine ‘Las Divas De La Tarde’
• Mega TV Wins Seven Suncoast Regional EMMY(R) Awards
• Mega TV Wins Seven Suncoast Regional EMMY(R) Awards
• Mega TV Renews Affiliation Agreement With West Palm Beach’s WBWP Channel 57
• Spanish Broadcasting System, Inc. Schedules Third Quarter 2008 Teleconference
• The FCC has issued a notice of apparent liability to Spanish Broadcasting System, with two separate forfeitures of $16,000 for recording a phone call for broadcast without the permission of the call recipient.