Emmis Agrees To Purchase Certain Preferred Shares

Buying Back Stock

EMMIS COMMUNICATIONS has signed agreements with certain holders of its 6.25% Series A Cumulative Convertible Preferred Stock to purchase their shares of Preferred Stock and has signed an agreement with ZELL CREDIT OPPORTUNITIES MASTER FUND, L.P. to finance the purchases. EMMIS may enter into additional transactions to purchase its Preferred Stock in the future.

EMMIS entered into securities purchase agreements with certain holders of its Preferred Stock under which EMMIS will purchase shares of its Preferred Stock from such holders at prices that are below the closing price of the Preferred Stock on NOVEMBER 10th, 2011. The purchases will settle pursuant to total return swaps, the terms of which provide that until final settlement of the swaps, the seller agrees to vote its shares in accordance with the prior written instructions of EMMIS.

Under the terms of a Note Purchase Agreement, ZELL CREDIT OPPORTUNITIES MASTER FUND, L.P. has agreed to buy from EMMIS on up to four separate occasions on or before FEBRUARY 2nd, 2012, a total of up to $35,000,000 of unsecured notes. The net proceeds from the notes are expected to be used to enable EMMIS to ultimately acquire some of its Preferred Stock through privately negotiated transactions with individual Preferred Stock holders and/or through a tender offer.

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