CUMULUS NEWS RELEASE

CUMULUS MEDIA INC.

Announces Fourth Quarter and YTD 2000 Results

Q4 Same Station BCF Grows 70.3%

Q4 Pro Forma BCF Grows 30.9%

Cumulus Media Inc.’s (NASDAQ: CMLS) fourth quarter financial results conference call will be later this morning, Thursday March 15, 2001 at 11:00 AM Eastern Time to review the Company’s fourth quarter and calendar year financial results.   The call will be open to the general public on a listen only basis.  The dial in number is (801) 303-7410 for both international and domestic calls.   Please call five to ten minutes in advance to ensure that you are connected prior to the presentation.  Following its completion, a replay of the call can be accessed for seven business days by dialing  (402) 220-1490.  The access code for the replay is 1127.  

ATLANTA, GA March 15, 2001 -- Cumulus Media Inc. (NASDAQ: CMLS) today reported results for the three and twelve month periods ended December 31, 2000.  The quarter ended December 31, 2000 was marked by meaningful cash flow improvement from the prior year due to the realization of operating expense savings resulting from management actions taken in the 2^nd half of the year.  The quarter also ended with a consolidated and a newly staffed corporate management team in the new headquarters in Atlanta.  Finally, the quarter was marked by additional non-recurring items, including $5.2 million in other income and $6.9 million in non-cash, non-recurring charges in connection with the write-down of goodwill and net assets on two non-broadcast assets. The gain and the charges are discussed below.

 Fourth Quarter, 2000 Operating Performance

 For the three months ended December 31, 2000 net revenues increased $1.8 million, or 3.2%, to $57.5 million compared to $55.7 million for the same period in 1999.  Broadcast Cash Flow (defined as station operating income (loss) before depreciation, amortization, LMA fees, non-cash stock compensation expense and other non-recurring charges) increased $4.9 million, or 40.4%, to $17.2 million from $12.3 million for the same period in 1999.   EBITDA (defined as operating income (loss) before depreciation, amortization, LMA fees, non-cash stock compensation expense and other non-recurring charges) increased $2.3 million, or 24.3% to $11.5 million from $9.2 million for the same period in 1999.  This increase in EBITDA was achieved despite $2.8 million of non-recurring corporate overhead incurred during the quarter.

After Tax Cash Flow (“ATCF”), defined as Net Loss Attributable to Common Shareholders plus depreciation and amortization, plus or minus non-cash tax expense (benefits) and other non-cash or non-recurring items, was ($1.6) million, or ($0.05) per share for the three months ended December 31, 2000.  This compares favorably to ATCF of ($7.0) million, or ($0.22) per share for the three months ended December 31, 1999.  

Basic and diluted loss per share was ($0.32) for the three months ended December 31, 2000.  This compare favorably to a basic and diluted loss per share of ($0.43) for the three months ended December 31, 1999.

On a same station basis, net revenues for the 160 stations in 30 markets operated for at least a full year increased  $0.1 million, or 0.4%, to $33.5 million for the three months ended December 31, 2000, compared to net revenues of $33.4 million for the three-month period ended December 31, 1999.  Same station Broadcast Cash Flow increased $4.5 million, or 70.3%, to $10.8 million for the three months ended December 31, 2000, compared to $6.3 million for the three months ended December 31, 1999.

On a pro forma basis, after all announced acquisitions and divestitures, net revenues for the 225 stations in 46 markets decreased $0.1 million, or 0.1%, to $57.1 million for the three months ended December 31, 2000, compared to net revenues of $57.2 million for the three-month period ended December 31, 1999.  Pro forma Broadcast Cash Flow increased $4.2 million, or 30.9%, to $17.8 million for the three months ended December 31, 2000, compared to $13.6 million for the three months ended December 31, 1999.  

Performance for twelve months ended December 31, 2000

 For the twelve months ended December 31, 2000, net revenues increased $45.9 million, or 25.5%, to $225.9 million, from $180.0 million for the twelve months ended December 31, 1999. Including a charge of $20.2 million to bad debt expense in the third quarter, Broadcast Cash Flow decreased $12.1 million, or 25.9%, to $34.6 million for the twelve months ended December 31, 2000, compared to $46.7 million for the twelve months ended December 31, 1999. As a result of the non-recurring charge discussed above, and non-recurring corporate overhead incurred in 2000, EBITDA decreased $22.2 million, or 57.5%, to $16.3 million for the twelve months ended December 31, 2000, compared to $38.5 million for the twelve months ended December 31, 1999.

 For the twelve months ended December 31, 2000, ATCF was ($29.4) million, or ($0.84) per share.  This compares to ATCF of ($12.3) million, or ($0.50) per share for the twelve months ended December 31, 1999. 

 Basic and diluted loss per share was ($0.49) for the twelve months ended December 31, 2000, compared to ($1.50) for the twelve months ended December 31, 1999.

 On a same station basis, net revenue for the 160 stations in 30 markets operated for at least a full year increased $2.1 million, or 1.7%, to $126.5 million for the twelve months ended December 31, 2000, when compared to net revenue of $124.4 million for the twelve month period ended December 31, 1999. Same station Broadcast Cash Flow decreased $2.5 million, or 7.8%, to $29.6 million for the twelve months ended December 31, 2000, compared to $32.1 million for the twelve months ended December 31, 1999.

On a pro forma basis, after all announced acquisitions and divestitures, net revenue for the Company’s 225 stations in 46 markets increased $4.6 million, or 2.2%, to $215.3 million for the twelve months ended December 31, 2000, compared to net revenues of $210.7 million for the twelve-month period ended December 31, 1999.  Pro forma Broadcast Cash Flow decreased $1.8 million, or 3.2%, to $56.0 million for the twelve months ended December 31, 2000, compared to $57.8 million for the twelve months ended December 31, 1999.

Cumulus Chairman and CEO Lew Dickey noted, “During the fourth quarter, we realized meaningful expense reductions across our entire platform as a direct result of actions taken in the second half of 2000. Cumulus’ expense base is now beginning to align more closely with that of our peers.  This fiscal discipline will serve us well as we navigate a particularly difficult advertising environment.”

Gain on Sale of Assets; Non-Recurring Charge for Impairment of Net Assets and Goodwill;

The Company recorded $5.2 million of other income for the three months ended December 31, 2000.  The largest component of this non-operating income was the non-recurring gain on the sale of assets in connection with Company’s completion of the second phase of the asset exchange and sale with Clear Channel Communications (NYSE: CCU) on October 2, 2000. 

Also, in connection with a recoverability review of the carrying value of certain non-radio assets, the Company recorded a $6.9 million, non-recurring charge comprised of 1) a $5.1 million charge to write down the carrying value of certain long-lived assets related to the Company’s wholly owned subsidiary, Broadcast Software International (“BSI”); and 2) a $1.8 million charge to charge to write down the carrying value of certain long-lived assets related to the Company’s wholly owned subsidiary the Advisory Board.   The write-down of these non-radio assets underscores management’s commitment to focus exclusively on radio operations.

Executive Vice-President and Chief Financial Officer Marty Gausvik noted, “ The fourth quarter was a critical transition period for our Company.  After we successfully completed the majority of the Clear Channel transaction and the entire Connoisseur Communications acquisition without incurring any additional indebtedness, the new management team turned its focus to operations, which will remain our focus throughout 2001.  We achieved meaningful expense reductions during the fourth quarter, and we will continue to closely monitor our expense levels and strive for greater efficiencies across our platform.” 

About Cumulus Media Inc.

Giving effect to the completion of all pending acquisitions and divestitures, Cumulus Media will own and operate 225 radio stations in 46 mid-size and smaller U.S. media markets. The Company’s headquarters are in Atlanta, GA, and its web site is www.cumulus.com.  In addition, the Company owns and operates a multi-market radio network in the English-speaking Caribbean.  For additional information regarding the Company contact Daniel O’Donnell, Vice President, Finance or Bettina Martin at (404) 949-0700.

Certain statements within this release constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  Such forward looking statements are subject to numerous known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements in light of future decisions by the Company, and by market, economic, competitive, regulatory and technological developments beyond the Company’s control.  

The words or phrases "guidance," "expect," "anticipate," "estimates" and "forecast" and similar words or expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. Investors should examine the filings that are made with the SEC by the Company from time to time, which more fully describe the risks and uncertainties associated with Cumulus Media Inc.’s business.  Except as otherwise stated in this news announcement, Cumulus Media Inc. does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

CUMULUS MEDIA INC.

Fourth Quarter 2000 Results

*** Year to date totals exclude the impact of one-time and non-recurring charges 

CAPITALIZATION

CUMULUS MEDIA INC.

Fourth Quarter 2000 Quarter Results

CUMULUS MEDIA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(Unaudited)