Cumulus Enters California, Oregon Markets; Acquisitions Add 9 Stations in 3 Markets for $51 Million.

Business Editors, Media Writers

MILWAUKEE--(BUSINESS WIRE)--Dec. 20, 1999

Cumulus Media Inc. (NASDAQ:CMLS) today announced that it has signed definitive agreements with two sellers to acquire 9 radio stations in 3 media markets in California and Oregon for $51 million in cash. Pending regulatory approval, Cumulus will own 310 stations in 61 media markets as a result of these and other pending transactions.

Cumulus is acquiring 6 FM and 2 AM stations in three media markets from McDonald Media Group for $41 million. The stations include KBBY-FM, KHAY-FM, and KVEN-AM in Oxnard-Ventura, California; KMGQ-FM and KKSB-FM in Santa Barbara, California; and KZEL-FM, KNRQ-FM and KNRQ-AM in Eugene-Springfield, Oregon.

The Company is also building its market position in Santa Barbara by buying KRUZ-FM from Pacific Coast Communications for $10 million. Known as "Cruise," KRUZ is licensed by the FCC to broadcast an exceptionally powerful 105 kW signal that extends well beyond Santa Barbara up and down the Southern California coast, including coverage of the Oxnard-Ventura market.

Cumulus will operate the stations under the terms of management agreements, pending final closings in the fourth quarter of 2000.

"Operationally, we know the McDonald properties very well from our existing LMA with their Montgomery stations," said Lew Dickey, Cumulus Vice Chairman. "That deal has been a major success for us, and we've been able to generate increased revenue and cash flow and buy down the eventual purchase price multiple for those stations since we began programming and marketing them last year. The California and Oregon markets exhibit an equivalent opportunity for upside as we implement the Cumulus strategies and systems, build the direct sales force to drive revenue, and, where advantageous, add additional stations to the clusters."

Oxnard-Ventura, California (Arbitron market rank No. 108 of 276)

The Oxnard-Ventura radio market consists of Ventura County, situated "Upcoast" between the greater Los Angeles area and Santa Barbara. Importantly for radio advertising, the retail sector has blossomed along the 101 Freeway with the development in the past seven years of over one and one-half million square feet of value retail shopping facilities. Quoting the Ventura County Star [October 1997], "Retail has been king in Ventura County this decade, lining freeways and thoroughfares with big box stores, outlet malls and shopping centers." The Oxnard Auto Mall, Price/Costco Club, Wal-Mart, Sam's Club, The Marketplace, and the Oxnard Factory Outlet Center combine to offer one of the largest diverse concentrations of value shopping in the L.A. Basin.

Oxnard-Ventura is also surrounded by some of the richest agricultural land in the world and is the home of the county-operated Channel Islands Harbor, gateway to the Channel Islands National Park. Educational institutions in the market include California Lutheran University, Thomas Aquinas College and the University of La Verne. Ventura is also home to the corporate headquarters of Kinko's.

Santa Barbara, California (Arbitron market rank No. 185)

Santa Barbara County's economic growth has been driven by the expansion of local telecommunications, computer and software, medical devices, and electronics firms. Major employers include the University of California, Vandenburg Air Force Base, Lockheed Martin, Vons/Williams Brothers Stores and Raytheon Systems. The median sales price for a single-family residence in the City of Santa Barbara was $330,364 and within Santa Barbara County was $241,980 in 1997.

The University of California, Santa Barbara (USCB) has an enrollment of 19,000 students and is the area's largest employer with 8,660 employees. UCSB has an annual budget of $400 million, with $240 million being spent locally. In addition, the student population adds over $131 million annually to the local economy.

Vandenburg Air Force Base is located near the cities of Lompoc and Santa Maria in the northern portion of the market. Vandenburg AFB employs over 1,500 civilian workers and has a military population of 3,600. In 1997, the base contributed over $580 million into the local economy.

Eugene-Springfield, Oregon (Market rank No. 143)

The Eugene-Springfield media market is experiencing robust growth fueled in large part by technology industries. As one example, Sony Electronics of America recently built a $50 million CD-ROM manufacturing plant in Springfield. CD packaging companies and related services have followed, giving the area a one-shot employment boost of nearly 1,000 jobs. The University of Oregon, Lane County's largest employer, is home to 16,780 students and 1,200 faculty members and contributes more than $385 million annually in direct spending to the local economy. Major employers in the Eugene-Springfield market include the Hyundai Semi-Conductor, Symantec, Monaco Coach, Marathon Coach, Peace Health, Fred Meyer Stores, Weyerhauser, and Willamette Industries. Broadcast Software International (BSI), Cumulus' wholly-owned broadcast technology and automation systems subsidiary, is headquartered in Eugene.

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 310 radio stations in 61 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.