Cumulus News Release

CUMULUS NEWS RELEASE

JUL 29, 1999

CUMULUS MEDIA INC., Continued Growth in Second Quarter, Same-Station Revenue up 22.8%; Broadcast Cash Flow up 64.5%; Cash Flow Margins increase 33.7%

MILWAUKEE, WI July 29, 1999 -- Cumulus Media Inc. (NASDAQ: CMLS), the nation’s third largest owner-and-operator of radio stations (based upon the number of stations owned or to be acquired pursuant to pending acquisition agreements), today reported second quarter 1999 results marked by significant increases in revenue, broadcast cash flow and margins when compared to the second quarter of 1998.

Three months ended June 30, 1999

Consolidated net revenue on a historical basis was $45.8 million, up 109.3% from $21.9 million for the first quarter in 1998. Broadcast cash flow was $13.5 million, up 145.6% from $5.5 million. Due to non-cash depreciation and amortization expense, and interest expense related to the acquisition of 190 stations since the Company’s inception on May 22, 1997, and accrued dividends on the Company’s Series A Preferred Stock, the Company reported a net loss, attributable to common stock, of $8.1 million during the second quarter of 1999, or $(.41) per share versus $(.28) per share in 1998.

The Company’s historical results of operations from period to period are not directly comparable because of the impact of various acquisitions and dispositions that the Company has completed since its inception.

On a same-station basis, net revenue for the 119 stations in 20 markets operated for at least a full year was $27.1 million, up 22.8% from the previous year’s net revenue of $22.1 million. Broadcast cash flow was $8.8 million, up 64.5% from $5.4 million. Broadcast cash flow margins increased to 32.5% in 1999 compared to 24.3% in the second quarter of 1998.

For the 36 markets and 195 stations operated since January 1, 1999 net revenue was $40.7 million, up 21.6% from the previous year’s net revenue of $33.5 million. Broadcast cash flow was $12.5 million, up 43.2% from $8.7 million. Broadcast cash flow margins increased to 30.7% in 1999 compared to 26.1% in the second quarter of 1998.

On a Pro-forma basis (assuming all 228 stations owned or operated under an LMA agreement at any time during the applicable period were owned or operated under an LMA agreement for the full period), consolidated net revenues increased 15.7% to $46.0 million and broadcast cash flow increased 31.0% to $13.5 million compared to the quarter ended June 30, 1998 when revenues and cash flow were $39.7 million and $10.3 million respectively. Broadcast cash flow margins increased to 29.4% in 1999 compared to 26.0% in the second quarter of 1998.

Six months ended June 30, 1999

For the six months ended June 30, 1999, Cumulus reported consolidated net revenue on a historical basis of $77.7 million, up from $34.4 million for six months ended June 30, 1998. Broadcast cash flow for the six months was $18.6 million versus $7.1 million for the same period in 1998. Due to non-cash depreciation and amortization expense, and interest expense related to the station acquisitions and non-cash dividends on preferred stock, the Company reported a net loss attributable to the common stock of $22.7 million, or $(1.15) per share for the six months ended June 30, 1999 versus a net loss of $9.7 million for the comparable period in 1998.

On a same station basis, net revenue for the 119 stations in markets operated for at least a full year was $47.2 million, up 21.3% from the previous year’s net revenues of $38.9 million for the same period. Broadcast cash flow was $12.2 million, up 81.6% from $6.7 million. Broadcast cash flow margins increased to 25.9% in 1999 compared to 17.3% in the second quarter of 1998.

For the 195 stations operated since January 1, 1999, net revenue for the six months ended June 30, 1999 was $71.4 million, up 19.5% from the previous year’s net revenue of $59.7 million. Broadcast cash flow was $17.4 million, up 45.6% from $11.9 million. Broadcast cash flow margins increased to 24.3% in 1999 compared to 20.0% in the second quarter of 1998.

On a Pro-forma basis (assuming all 228 stations owned or operated under an LMA agreement at any time during the applicable period were owned or operated under an LMA agreement for the full period), consolidated net revenues increased 13.9% to $81.0 million and broadcast cash flow increased 33.5% to $19.3 million compared to the six months ended June 30, 1998 when revenues and cash flow were $71.0 million and $14.4 million respectively. Broadcast cash flow margins increased to 23.8% in 1999 compared to 20.3% in the second quarter of 1998.

Commenting on the Company’s operating results, Richard Weening, Executive Chairman of Cumulus Media Inc., said, "We continue to be very pleased with our overall performance. Internal growth at 23% for net revenue and 64.5% for cash flow continues to out pace the industry. We believe the second quarter of 1999 marks the first reporting period that validates the size and scale of our Company and the cash flow potential of our assets. We are also pleased with the steady improvement in BCF margin, in line with our expectations and in proportion to the duration of our ownership or control. We remain positive regarding the revenue and cash flow growth potential in each of our markets where we are usually the leading media company and yet have considerable room for internal growth.

"In addition to consistent focus on operational improvements at the stations that we operate, our recently completed follow on equity offering improves our balance sheet by lowering our historical leverage to levels more consistent with our sector peers. The follow-on offering also positions us to continue our internal and external growth strategies at these lower historical leverage to levels, which will provide the benefit of improved cash flows," Mr. Weening went on to say.

The Company completed a follow on equity offering as of July 22, 1999, of approximately 9.7 million shares of its Class A Common Stock at a price of $24.125 per share, with proceeds of $233.1 million. The Company will use the net proceeds from the offering to redeem 35% of the original principal amount of its 13 ¾% Series A Cumulative Exchangeable Redeemable Preferred Stock due in 2009, repay the principal amount outstanding under its existing senior credit facility and fund the completion of a portion of its pending acquisitions.

Cumulus Media Inc. is the parent Company of Cumulus Broadcasting Inc., which along with its other subsidiaries, owns and operates station clusters in mid-size markets. The Company commenced operations May 22, 1997. Cumulus is the third largest U.S. radio operating company in terms of stations owned.

Pro forma the completion of all pending acquisitions, Cumulus Media will own and operate 246 radio stations in 45 mid-size and smaller U.S. media markets. After giving pro forma effect for the pending acquisitions, the Company will own, on average, over 5 radio stations per market, will enjoy either the first or second position in terms of revenue share in 42 of its markets, and is number one in 25 markets. In addition, the Company owns and operates a multi-market radio network in the English-speaking Caribbean.

This news announcement contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Key risks are described in the Company’s reports filed with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors including changes in the economic climate and the in the business of radio broadcasting. Accordingly, the Company’s actual performance may vary from those stated or implied herein.

CUMULUS MEDIA INC. (unaudited) (in thousands)

	Three Months Ended June 30		Six Months Ended June 30
	1999	1998	1999	1998
Historical:
Net Revenues	$45,800	$21,887	$77,715	$34,382
Broadcast Cash Flow	$13,544	$5,515	$18,589	$7,107
BCF Margins	29.6%	25.2%	23.9%	20.7%

Markets Operated One Year (119 Stations):
Net Revenues	$27,109	$22,074	$47,159	$38,884
Broadcast Cash Flow	$8,819	$5,362	$12,236	$6,737
BCF Margins	32.5%	24.3%	25.9%	17.3%

Stations Operated Since 1/01/99 (195 Stations):
Net Revenues	$40,738	$33,495	$71,401	$59,741
Broadcast Cash Flow	$12,500	$8,730	$17,356	$11,920
BCF Margins	30.7%	26.1%	24.3%	20.0%

Pro Forma (228 Stations):
Net Revenues	$45,959	$39,704	$80,955	$71,047
Broadcast Cash Flow	$13,534	$10,332	$19,275	$14,434
BCF Margins	29.4%	26.0%	23.8%	20.3%

CAPITALIZATION
		Pro Forma
	June 30, 1999	For Offering
Cash and cash equivalents	$9,086	$37,319
Long-term debt, including current maturities:
Term loan facility	108,300	125,000
Senior Subordinated Notes	160,000	160,000
Other	257	263
Total long-term debt	268,557	285,263

Series A Preferred Stock	143,038	94,536

Total Stockholders’ equity	102,401	324,716
Total capitalization	$513,996	$704,515

CUMULUS MEDIA INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited)
	Three Months Ended June 30, 1999	Three Months Ended June 30, 1998	Six Months Ended June 30, 1999	Six Months Ended June 30, 1998

Gross broadcast revenues	$49,746	$24,155	$84,241	$37,937
Less: Agency commissions	(3,946)	(2,268)	(6,526)	(3,555)
Net broadcast revenues	45,800	21,887	77,715	34,382
Station operating expenses	32,256	16,372	59,126	27,275
Corporate G.& A. expense	1,736	1,270	3,410	2,231
Depreciation and amortization	8,758	4,154	16,341	6,901
Operating income (loss)	3,050	91	(1,162)	(2,025)
Other (income) expenses: Interest expense Interest income Other income (expense), net	6,472 (82) (2)	2,732 (212) 4	12,492 (220) (2)	4,249 (355) (2)
Loss before income taxes	(3,342)	(2,425)	(13,436)	(5,921)
Income tax expense	-	(21)	-	(21)
Loss before extraordinary item	(3,342)	(2,446)	(13,436)	(5,942)
Extraordinary loss on early extinguishment of debt	-	-	-	(1,837)
Net loss	(3,342)	(2,446)	(13,436)	(7,779)
Preferred stock dividends and accretion of discount	4,752	1,084	9,297	1,926
Net loss attributable to common stock	$(8,094)	$(3,530)	$(22,733)	$(9,705)
Basic and diluted loss per common share:
Net loss attributable to common stock	$(0.41)	$(.28)	$(1.15)	$(.78)
Average Shares Outstanding	19,737	12,509	19,737	12,509

Pro Forma Basic and diluted loss per common share:
Before extraordinary loss	$(0.17)	$(.12)	$(0.68)	$(.30)
Extraordinary loss	-	-	-	$(.09)
Net loss attributable to common stock	$(0.41)	$(.18)	$(1.15)	$(.49)
Pro Forma common shares outstanding⁽¹⁾	19,737	19,737	19,737	19,737

⁽¹⁾ Pro forma for the shares issued in connection with the Company’s Initial Public Offering, which was completed on July 1, 1998, and including the exercise of the underwriter’s over allotment of 800,000 shares on July 31, 1998.

Contact: Richard Weening (414) 615-2800 or Dan O'Donnell (414) 615-2800

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