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CUMULUS NEWS RELEASE JUN 23, 1999 CUMULUS ENTERS THREE NEW MARKETS, Acquires Nine Stations in Mobile, AL; Pensacola, FL; McAllen-Brownsville-Harlingen, TX MILWAUKEE, June 23, 1999 -- Cumulus Media Inc. (NASDAQ:CMLS) announced today that it has acquired nine radio stations from three sellers to establish station clusters in three new markets for an aggregate purchase price of $51 million cash. In Mobile, AL, Cumulus acquired five Urban music stations including WBLX-FM, WDLT-FM and WDLT-AM from Calendar Broadcasting for $19.0 million and WYOK-FM and WYOK-AM from Roberds Broadcasting for $6.0 million. In neighboring Pensacola, FL, Cumulus is exercising its previously announced option to acquire Classic Rock WWRO-FM and Talk format WCOA-AM from Coast Radio for $9.0 million. WWRO and WBLX serve both Mobile and Pensacola. Cumulus establishes its cluster in McAllen-Brownsville-Harlingen, TX, with the market’s two leading non-hispanic stations – Contemporary Hit Radio KBFM-FM and the market’s only Country station, KTEX-FM – also acquired from Calendar Broadcasting for $17.0 million. McAllen-Brownsville-Harlingen is ranked by Arbitron as the 62nd largest market in the U.S. by population, making it the new largest market for Cumulus which specializes in mid-size markets. Mobile is ranked 86th largest by Arbitron. “Cumulus is acquiring a strong Urban format position in Mobile with the purchase of Calendar's heritage 100,000 watt, WBLX-FM, an Urban Contemporary powerhouse for 25 years,” said Lew Dickey, Vice Chairman of Cumulus. “Combined with WBLX is its sister station, Urban AC WDLT-FM - the market's perennial 25-54 leader - and WDLT-AM which programs Urban Gospel. “Rounding out this Urban cluster in Mobile is the highly successful, youth-targeted, WYOK-FM, which recently moved to a 100,000 watt signal covering both Mobile and Pensacola, and its Urban Gospel sister station WGOK-AM established for 40 years.” Mobile is located in Southwest Alabama at the head of Mobile Bay, thirty-one miles from the Gulf of Mexico. It is the second largest metropolitan area in Alabama and the State's major port. Mobile and the surrounding metropolitan area are home to more than 528,900 residents and boast over $5 billion in annual retail sales. The Mobile area houses several internationally known companies such as Kimberly Clark, Atlantic Marine, Inc., International Paper Co., and Ciba-Geigy Corporation. Neighboring Pensacola is ranked by Arbitron as market #122. “WCOA-AM is the community’s news and information leader having won numerous awards for community service,” Dickey said. Cumulus will also serve Pensacola with WWRO-FM. “Greg Gordon, WWRO morning man and a principal in seller Coast Radio, will continue as Market Manager of Cumulus’ stations in Pensacola.” Located in the panhandle of northwest Florida, Pensacola has an overall population that exceeds 300,000 people. Numerous nationally and internationally recognized companies such as the Solutia Company (Monsanto), Champion International and First Data Corporation offer Pensacola a robust and diversified economy. Known as “The Cradle of Naval Aviation,” Pensacola houses Naval Air Station Pensacola, home of the Navy’s Blue Angels and the National Museum of Naval Aviation, as well as Saufley Field, Corry Stations and NAS Whiting Fields. Several colleges and universities, including the University of West Florida with more than 8,100 students and Pensacola Junior College with more than 32,000 students are located in the market. Referring to Cumulus’ newest Texas market, Dickey said, “McAllen-Brownsville-Harlingen is a direct beneficiary of increased trade between the U.S. and Mexico. At market rank #62, it represents our largest market to date and underscores our commitment to acquiring leading positions in high growth, mid-size markets.” The southern Rio Grande Valley, spanned by the South Texas cities of McAllen, Brownsville, and Harlingen in Cameron and Hidalgo Counties, is one of the most rapidly growing markets in the nation, with 8.0% annual retail growth from 1992-97. Home to some 860,000 residents -- 64% under the age of 34 -- and adjacent to an additional 1.2 million residents in Mexico, the market's economic vibrancy is the direct result of NAFTA as manufacturers transport goods across the Free Trade Bridge. Industry Week Magazine ranked the market as the sixth fastest-growing manufacturing region in the country. Employers include Cargill, Levi Strauss, Lockheed-Martin, Fruit of the Loom, G.E. Titan Wheel, and a host of medium-sized manufacturers, distributors, and service corporations. The market is home to two international airports, as well as the University of Texas at Brownsville, the University of Texas-Pan American in Edinburg, and three community colleges. Cumulus Media Inc. is a radio broadcasting company focused on the acquisition,
operation, and development of radio stations in mid-sized markets in the
U.S. Including the stations in this announcement, as well as
other acquisitions pending FCC approval, Cumulus will own and operate 244
stations in 45 cities.
Contact: Peggy Bunker, 414-615-2800
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