Spanish Broadcasting System Announces the Payoff of $18.5 Million Promissory Note

Spanish Broadcasting System Announces the Payoff of $18.5 Million Promissory Note

COCONUT GROVE, Fla., Oct. 30 /PRNewswire-FirstCall/ -- Spanish Broadcasting System, Inc. (the "Company" or "SBS") (NASDAQ:SBSA) , today announced that on October 24, 2008, the Company entered into a letter agreement with BC Media Funding Company II, LLC ("BC Media") 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, the Company received a discount of $150,000 and only paid $18,350,000 in full satisfaction due under the Note. The Company 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, the Company was released from all obligations and liabilities, security interests, pledges, liens, mortgages, assignments or other interests granted by the Company and its subsidiaries pursuant to the security agreement, the pledge agreement, the Note and any and all documentation related to the loan documents.

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, 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.

First Call Analyst:
FCMN Contact:

Source: Spanish Broadcasting System, Inc.

CONTACT: Analysts and Investors - Joseph A. Garcia, Chief Financial
Officer, Executive Vice President and Secretary of Spanish Broadcasting
System, Inc., +1-305-441-6901; or Analysts, Investors or Media - Joseph
Kessler of Brainerd Communicators, Inc., +1-212-986-6667

Web Site: http://www.spanishbroadcasting.com/

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Profile: International Entertainment