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CUMULUS NEWS RELEASE SEP 23, 1999 CUMULUS TO ACQUIRE CAPE FEAR
STATIONS, 6 Stations in 2 North Carolina Markets for $47 Million
Milwaukee, WI September 23, 1999 -- Cumulus Media Inc. (NASDAQ:CMLS) today announced the acquisition of the Cape Fear group of 6 North Carolina radio stations for $47 million in cash and stock. The station group includes WGNI-FM and WMNX-FM (Coast 97.3) in Wilmington and WQSM-FM (Q98), WFNC-FM and AM, and WRCQ-FM (Rock 103.5) in Fayetteville. Cumulus will immediately assume operating control of the stations under terms of a management agreement pending approval of the transaction by the Federal Communications Commission. Cumulus currently owns WAAV-FM and AM and WWQQ-FM in Wilmington. “The two Cape Fear Wilmington properties are a strong natural complement to our existing three stations in the market,” said Lew Dickey Jr., Cumulus Vice Chairman. “We are also pleased to establish Cumulus with an excellent station cluster in the fast growing Fayetteville market,” Dickey said. The Cape Fear Companies entered the broadcasting industry in Fayetteville in 1940 with WFNC-AM, which became North Carolina's first all news-talk radio station. In 1947, WFNC-FM (now WQSM) became one of the first operational FMs in the nation, long before many Americans owned FM radio receivers. Cape Fear entered the Wilmington market in 1981 with Wilmington's first news-talk station, 980 WAAV and WGNI. “Cumulus is an exciting, fast growing and well managed company that cares about quality broadcasting and people,” said Hannah Gage, General Manager of the Wilmington properties. “We believe this is the best decision for our employees, for the radio stations and for our communities,” she continued. "With the tremendous changes in the broadcast industry, we feel this is the best move for all our stations, our employees, and the communities we serve," John Dawson, General Manager of the Fayetteville properties, said today. “Cumulus Media’s 261 station network and the enormous resources it brings to the table will guarantee our stations remain successful.” Cumulus Media is the parent company of Cumulus Broadcasting, Inc., which along with its other subsidiaries, owns and operates radio station clusters in mid-size markets. Assuming the completion of all pending acquisitions, Cumulus Media will own and operate 261 radio stations in 48 U.S. media markets. The Company commenced operations May 22, 1997. This news announcement contains certain forward-looking statements that
are based on 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. Accordingly, the Company’s
actual performance may vary from that stated or implied herein.
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