CUMULUS NEWS RELEASE

Announces Second Quarter 2001 Results Q2 Same Station BCF Grows 26.9% Q2 Pro Forma BCF Grows 14.1%

Cumulus Media Inc.’s (NASDAQ: CMLS) second quarter financial results conference call will be later this morning, Tuesday August 7, 2001 at 11:00 AM Eastern Time to review the Company’s second quarter financial results. The call will be open to the general public on a listen only basis.  The conference call dial in number is (801) 303-7410 for both international and domestic calls.   Please call ten minutes in advance to ensure that you are connected prior to the presentation.   Approximately two hours after completion of the call, a replay can be accessed until August 21, 2001 .   Domestic callers can access the replay by dialing (800) 839-0860.  International callers may access the replay by dialing (402) 220-1490 and using 1076 as the PIN code.  

ATLANTA , GA August 7, 2001 -- Cumulus Media Inc. (NASDAQ: CMLS) today reported results for the three and six month periods ended June 30, 2001 .  The quarter ended June 30, 2001 was highlighted by continued cash flow and margin improvement from the prior year due to the realization of operating efficiencies reflective of the management team’s intense focus on improving its core radio operations.      

Performance for the three months ended June 30, 2001

The decrease in the Company’s historical revenue and cash flows during the quarter is largely due to the decrease in the size of the station portfolio being operated in the second quarter of 2001 (226 stations in 45 markets) versus the prior year period, when the Company  had a pro forma station portfolio of 271 stations in 54 markets. 

For the three months ended June 30, 2001 net revenues decreased $7.6 million, or 12.1%, to $55.1 million compared to $62.6 million for the same period in 2000.  Broadcast Cash Flow (defined as operating income (loss) before depreciation, amortization, LMA fees, non-cash stock compensation expense, corporate general and administrative expense and other non-recurring charges) increased $1.9 million, or 11.6%, to $18.4 million from $16.4 million for the same period in 2000.   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 18.2% to $14.7 million from $12.4 million for the same period in 2000. 

Basic and diluted loss per common share was ($0.47) for the three months ended June 30, 2001 compared with ($0.36) for the three months ended June 30, 2000 .

After Tax Cash Flow (“ATCF”), defined as Net Loss Attributable to Common Shareholders plus depreciation and amortization, plus or minus non-cash deferred tax expense (benefits) and other non-cash or non-recurring items, was $2.5 million, or $0.07 per common share for the three months ended June 30, 2001 .  This compares favorably to ATCF of $1.9 million, or $0.05 per common share for the three months ended June 30, 2000 . 

On a same station basis, net revenues for the 167 stations in 32 markets operated since January 1, 2000 decreased  $1.7 million, or 4.4%, to $35.9 million for the three months ended June 30, 2001, compared to net revenues of $37.5 million for the three-month period ended June 30, 2000.  Same Station Broadcast Cash Flow increased $2.4 million, or 26.9%, to $11.4 million for the three months ended June 30, 2001 , compared to $9.0 million for the three months ended June 30, 2000 .

On a pro forma basis, after all announced acquisitions and divestitures, net revenues for the 226 stations in 45 markets decreased $2.3 million, or 4.0%, to $54.6 million for the three months ended June 30, 2001, compared to pro forma net revenues of $56.9 million for the three-month period ended June 30, 2000.  Pro forma Broadcast Cash Flow increased $2.4 million, or 14.1%, to $19.0 million for the three months ended June 30, 2001 , compared to $16.6 million for the three months ended June 30, 2000 .

Performance for the six months ended June 30, 2001

For the six months ended June 30, 2001 net revenues decreased $10.7 million, or 9.7%, to $99.7 million compared to $110.3 million for the same period in 2000.  This decrease in revenue is largely due to the decrease in the size of the station portfolio being operated in the second quarter of 2001 versus the prior year period.  Broadcast Cash Flow (defined as operating income (loss) before depreciation, amortization, LMA fees, non-cash stock compensation expense, corporate general and administrative expense and other non-recurring charges) increased $5.7 million, or 26.0%, to $27.5 million from $21.9 million for the same period in 2000.   EBITDA (defined as operating income (loss) before depreciation, amortization, LMA fees, non-cash stock compensation expense and other non-recurring charges) increased $6.9 million, or 52.2% to $20.0 million from $13.2 million for the same period in 2000. 

Basic and diluted loss per common share was ($0.57) for the six months ended June 30, 2001 which compares favorably to ($0.75) for the six months ended June 30, 2000 .

After Tax Cash Flow (“ATCF”), defined as Net Loss Attributable to Common Shareholders plus depreciation and amortization, plus or minus non-cash deferred tax expense (benefits) and other non-cash or non-recurring items, was ($4.6) million, or ($0.13) per common share for the six months ended June 30, 2001.  This compares favorably to ATCF of ($7.7) million, or ($0.22) per common share for the six months ended June 30, 2000 . 

On a same station basis, net revenues for the 167 stations in 32 markets operated since January 1, 2000 decreased  $2.3 million, or 3.3%, to $64.9 million for the six months ended June 30, 2001, compared to net revenues of $67.2 million for the six-month period ended June 30, 2000.  Same station Broadcast Cash Flow increased $5.1 million, or 44.6%, to $16.5 million for the six months ended June 30, 2001 , compared to $11.4 million for the six months ended June 30, 2000 .

On a pro forma basis, after all announced acquisitions and divestitures, net revenues for the 226 stations in 45 markets decreased $3.4 million, or 3.3%, to $98.5 million for the six months ended June 30, 2001, compared to pro forma net revenues of $101.9 million for the six-month period ended June 30, 2000.  Pro forma Broadcast Cash Flow increased $4.9 million, or 20.7%, to $28.2 million for the six months ended June 30, 2001 , compared to $23.4 million for the six months ended June 30, 2000 .

Cumulus Chairman and CEO Lew Dickey noted, “We are pleased with the continued progress in market operating performance realized during the second quarter of 2001.  We are achieving meaningful operating efficiencies across our entire platform as a direct result of the Company’s operating practices and expense discipline. This expense discipline has resulted in 550 basis points of margin expansion on a pro forma basis during the second quarter, in a revenue environment that remains difficult.  Cumulus’ expense base is now beginning to align more closely with that of our peers.  This fiscal discipline continues to serve us well as we navigate a particularly difficult advertising environment.”

“In addition to our improving operating performance, the second quarter was also marked by two other notable accomplishments.  We have completed all of the significant transactions that comprised our acquisition pipeline prior to the close of the second quarter.  The achievement of this milestone was accomplished with the cooperation of our bank group, and I would like to publicly thank them for their support.  The completion of these transactions allows us to concentrate on the Company’s primary objective, the creation of shareholder value through improvement in the operational and financial performance of our platform.”

“Also, as we announced on June 12, 2001, we have reached an agreement in principle to settle a series of shareholder class action lawsuits arising out of the company’s announcement on March 16, 2000 of the restatement of certain revenues and expenses for the first, second, and third quarters of 1999.   These lawsuits were the remaining vestige of an old problem, and it was time to put them behind us.  Their resolution constitutes still another step forward in our plan to make the new Cumulus a premier company in our industry.”

Executive Vice-President and Chief Financial Officer Marty Gausvik noted, “the second quarter results reflect the progress made within our Company.  We have achieved meaningful reductions in our cost of sales, and across all functional areas within our operations during the first six months of 2001, a critical step in getting our operating costs in line with our peer group.   Our team of radio professionals is focused on achieving operating results and efficiencies in their respective markets.    The number of markets in our portfolio which have demonstrated improvement in BCF margin is an encouraging sign.  We continue to closely monitor our expense levels and strive for greater efficiencies across our platform.  This will position the Company to achieve additional BCF margin improvement when the advertising environment improves.” 

“Despite the challenging advertising environment we continue to face, we believe the quality of our revenue has improved year over year as our managers focus on traditional pricing and inventory disciplines, while deemphasizing non-traditional revenues and other lower margin revenue streams.  This will ensure that as advertising demand improves, Cumulus is positioned to achieve additional BCF margin improvement.”

About Cumulus Media Inc.

Giving effect to the completion of all pending acquisitions and divestitures, Cumulus Media will own and operate 226 radio stations in 45 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 "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.

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CUMULUS MEDIA INC.

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