MEXICO CITY, April 3 /PRNewswire-FirstCall/ -- Grupo Radio Centro, S.A.B. de C.V. (NYSE: RC) (the 'Company'), one of Mexico's leading radio broadcasting companies, announced today that it has entered into a local marketing agreement (the 'LMA') with Emmis Communications Corporation ('Emmis'), a U.S. radio broadcasting company. Under the LMA, the Company will provide programming to, and sell advertising time on, KMVN-FM, a radio station broadcasting in Los Angeles, California on the 93.9 FM frequency, for up to seven years. The Company also entered into a seven-year call and put option agreement (the 'Option Agreement') with Emmis to purchase the assets of KMVN- FM.

Under the LMA, the Company will pay Emmis U.S. $7 million per year, plus expenses incurred by Emmis with respect to the station, and the Company has agreed to advance U.S. $14 million (approximately Ps. 200 million) as prepayment for the first two years. The Company is financing the prepayment with a bank loan in an aggregate principal amount of Ps. 200 million, bearing interest at a fixed rate of 13.0% per annum and maturing in five years.

The Company is entitled to exercise its call option to purchase the KMVN- FM station assets under the Option Agreement at any time during its seven-year term, and Emmis is entitled to require the Company to purchase the station assets during the seventh year of the term. If, at the time of the exercise of the call or put, the Company is not qualified under U.S. law to own a U.S. radio station, the Company must assign the Option Agreement to a qualified third party. The purchase price under the Option Agreement is U.S. $110 million.

Mr. Carlos Aguirre, Grupo Radio Centro's Chief Executive Officer, stated, 'We are very pleased to announce this transaction, which will permit Radio Centro to broadcast the Company's programming on an important FM radio station in the largest radio market in the United States in terms of revenue, Los Angeles, California. This transaction promotes Radio Centro's business strategy by allowing the Company an opportunity to leverage its international programming success despite the current recession.'

Emmis Chairman and Chief Executive Officer Mr. Jeff Smulyan stated, 'As we announced last year, we are exploring strategic alternatives, lowering debt and better positioning ourselves to face the current recession.