Citadel Communications to Acquire Five Tucson Radio Stations From Slone Broadcasting for $63 Million; Divests Four Stations in Monroe, Louisiana.

Business Editors

LAS VEGAS, Nev. & TUCSON, Ariz. & MONROE, La.--(BUSINESS WIRE)--Dec. 21, 2000--Mid-sized market radio broadcaster Citadel Communications Corporation (Nasdaq: CITC) (the Company) announced today that its principal operating subsidiary, Citadel Broadcasting Company (Citadel), has entered into definitive agreements to acquire five radio stations from Slone Broadcasting Inc. and Slone Radio, LLC for approximately $61 million in cash and $2 million in the Company's stock.

The Company also announced that Citadel has reached a definitive agreement to sell four radio stations in Monroe, Louisiana to Monroe Radio Partners, Inc. for approximately $4 million in cash.

Upon consummation of the acquisition, expected before the end of 2001, Citadel will add to its portfolio three FM and two AM stations in Tucson, Arizona, the nation's 60th largest market when ranked by revenue, according to BIA Research, Inc. The stations being acquired are: KIIM-FM, KHYT-FM, KOAZ-FM, KCUB-AM and KTUC-AM. Kalil & Co., Inc. was the exclusive broker in the transaction.

Completion of the acquisition is subject to FCC approval, the expiration of the applicable Hart-Scott-Rodino waiting period, the consummation of station divestitures and other closing conditions. Prior to closing the acquisition, Citadel will operate these stations under a local marketing agreement as soon as the applicable Hart-Scott-Rodino waiting period expires.

"This acquisition and this disposition are consistent with our business plan to gradually move out of smaller markets into larger mid-size markets with excellent growth potential," commented Citadel Chairman and Chief Executive Officer, Larry Wilson. "I have always admired Jim Slone as one of the truly great radio operators in the country. We are particularly pleased to take over the operation of these stations and continue the Slone legacy with Jim's sons, Jamie and Fred, and daughter Mary, who will be continuing on with Citadel."

Jim Slone, President of Slone Broadcasting, added, "After forty years as a radio broadcaster, it is not easy to give up the reins of these stations. The task is much easier since they are being passed on to Larry Wilson, a broadcaster I have known for many years and whom I hold in high regard."

Jamie Slone, General Manager of the stations, who will retain those responsibilities with Citadel, concluded, "In this age of consolidation, it was almost inevitable that ownership of these stations would pass to one of the major consolidators. I am delighted they are going to Citadel, a long-time broadcaster with a reputation for delivering excellence to listeners, advertisers, employees and the communities in which they operate."

The stations to be sold in Monroe are: KTJC-FM, KYEA-FM, KZRZ-FM and KMYY-FM. The Company expects that this divestiture will close during the first quarter of 2001. Michael J. Bergner of Bergner & Co. was the exclusive broker in this transaction.

On a pro forma basis, after these transactions have closed, the Company does not expect the acquisition or divestiture to materially alter the Company's anticipated revenue or broadcast cash flow growth rates for 2001, which it previously disclosed in a press release on November 27, 2000. The Company also expects that, based on anticipated growth rates and information currently available, its debt-to-EBITDA (earnings before interest, taxes, depreciation and amortization) ratio at the end of fiscal year 2001 will be under 6.5-to-1. The Company intends to finance the acquisition through a combination of proceeds from station divestitures and bank debt.

Citadel is a radio broadcasting company that, upon completion of pending transactions, will own or operate 143 FM and 66 AM stations concentrated in 44 markets.

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. Words or expressions such as "growth potential," "expects," "anticipated" and "intends," or variations of such words and similar expressions, are intended to identify such forward-looking statements. Key risks are described in the Company's and Citadel's reports filed with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors, including economic changes and changes in the radio broadcast industry generally. Accordingly, the Company's and Citadel's actual performance and results may vary from those stated herein, and the Company and Citadel undertake no obligation to update the information contained herein.