MAY 4, 2000

CUMULUS AND CLEAR CHANNEL AGREE TO SWAP STATIONS, $209.5 million deal now includes $172.9 million of asset swaps
 

Milwaukee, WI - Cumulus Media Inc. (NASDAQ: CMLS) announced today that it will acquire 11 stations in 4 markets from Clear Channel Communications (NYSE: CCU) and will provide in return 25 stations in 5 markets plus cash.

“The total acquisition transaction is valued at $209 million,” said Richard Weening, Executive Chairman.  “The asset exchange we are announcing today is a win-win in that it involves great properties on both sides and uses the same cash flow valuation multiple basis in both directions,” Weening continued.   “Importantly, the deal reduces the Cumulus cash needed to close the transaction by a further $111 million in addition to the previously announced asset  swap involving our Chattanooga stations which is valued at about $62 million.”   The balance of the compensation will be paid in cash and is estimated to be about $36.6 million depending on the outcome of pending discussions about value of Cumulus and Clear Channel broadcast towers for the stations in the deal.
 

The stations and markets Cumulus is acquiring include: 

Melbourne-Titusville-Cocoa, Florida (Market Rank # 96) – WHKR-FM.   In this market, Cumulus recently agreed to purchase WAOA-FM and WTMS-AM from Southern Broadcast Group, LLC. 

Shreveport, Louisiana (Market Rank # 129) – KRMD-FM, KRMD-AM, KMJJ-FM.

Cedar Rapids, Iowa (Market Rank # 201) – KHAK-FM, KRNA-FM, KDAT-FM.

Harrisburg, Pennsylvania (Market Rank # 76) WTCY-AM, WNCE-FM, WTPA-FM, WNNK-FM.

Lew Dickey, President of Cumulus Broadcasting, said: “We are very pleased with the deal. Clear Channel is getting some fine stations while we gain important positions in some excellent new markets with some of the leading stations.” 

Cumulus will provide Clear Channel the following station assets as part of the transaction: 
 

Chattanooga, Tennessee (Market Rank # 104) – WUSY-FM, WKXJ-FM, WLMX-FM, WIIS-AM, WLOV-FM.

McAllen, Texas (Market Rank # 63) - KTEX-FM, KBFM-FM.

Ann Arbor, Michigan (Market Rank # 145) – WIQB-FM, WQKL-FM, WTKA-AM, WYBN-AM.

Salisbury, Maryland (Market Rank # 150) – WLVW-FM, WQHQ-FM, WTGM-AM, WSBY-FM, WJDY-AM, WWFG-FM, WLBW-FM, WOSC-FM.

Eau Claire, Wisconsin (Market Rank # 231) – WATQ-FM, WBIZ-AM, WBIZ-FM, WMEQ-AM, WMEQ-FM, WQRB-FM.

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 completion of all pending acquisitions and divestitures, Cumulus Media will own and operate 304 radio stations in 60 U.S. media markets.  The Company commenced operations May 22, 1997.
 

Contact:
Peggy Bunker, (414) 615-2800
 

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