Cumulus Media Completes $49.5 Million In New Station Acquisitions.

MILWAUKEE--(BUSINESS WIRE)--Aug. 17, 1998--

Acquires 25 Stations in Southern Minnesota and Northern Iowa; 4 Stations in Bismarck, North Dakota

Cumulus Media Inc. (NASDAQ:CMLS), the nation's fourth largest radio broadcaster, today announced that it has completed the previously announced acquisition of 25 radio stations (15 FM and 10 AM) in Rochester, MN and four other markets in Southern Minnesota and Northern Iowa from James Ingstad for $42.5 million.

"These 25 stations give Cumulus an established audience base and excellent distribution across the prosperous southern tier of the state of Minnesota and northern Iowa," stated Richard Weening, Executive Chairman of Cumulus Media Inc. "Rochester was an Arbitron-rated radio market until very recently, and we think it will be again shortly."

The specific markets covered by the acquisitions include:

-- Rochester, Minnesota: 2 FM and 2 AM stations; -- South Central, Minnesota: (Faribault, Owatonna, Waseca): 4 FM and 4 AM; -- Mankato, Minnesota: 2 FM and 1 AM; -- Southwestern Minnesota (New Ulm, Springfield, and Marshall): 2 FM and 1 AM; and -- Mason City, Iowa: 5 FM and 2 AM.

In addition, the Company established a position in the Bismarck, ND radio market with the completed acquisition of 3 FM stations and 1 AM station for $7.0 million, also from James Ingstad. As a result of these acquisitions, the Company now owns or operates 156 stations in 32 U.S. markets.

Mr. Weening added, "We will continue to work to identify and acquire stations in high potential but presently unrated radio markets. Not only do such stations exhibit excellent cash flow and growth potential, but the markets they serve also warrant consideration for becoming rated markets in the near future as their economic base attains critical mass."

Rochester, MN is home to the world-renowned Mayo Clinic, as well as a highly skilled white collar workforce whose employers include IBM, Western Digital, ShowCase Corporation, and Winona State University. Located 80 miles southeast of the Minneapolis-St. Paul area, Rochester is the commercial and cultural hub of Southeastern Minnesota. Stations acquired by Cumulus in Rochester include KRCH(FM), KWEB(AM), and KMFX(FM/AM).

The Faribault-Owatonna-Waseca-Albert Lea region in South Central Minnesota lies along Interstate-35 south from Minneapolis-St. Paul, extending past Interstate-90 to the Iowa border. The South Central Minnesota market is one of the wealthiest in Minnesota on a per capita basis, with a diversity of technology, manufacturing, service, and food-related industries. Major industries include printing, communications and electronics, food processing, metal fabrication and custom machinery, glass, hydraulic equipment, and insurance. The eight stations acquired in this market include KQCL(FM), KQPR(FM), KRUE(FM), KRFO(FM/AM), KDHL(AM), KNFX(AM), and KOWO(AM).

The economy of the Mankato, MN market is anchored by Mankato State University, which educates over 12,000 undergraduate and graduate students annually. Mankato lies 80 miles southwest of the Twin Cities area and is the second largest city in Southern Minnesota, after Rochester. Cumulus acquired KXLP(FM) and KYSM(FM/AM) in Mankato.

The Southwestern Minnesota region, from New Ulm west and south to the state border, has developed a skilled manufacturing sector supplemented by stable economic growth in transportation, tourism, and agriculture. For example, New Ulm includes the QMC Technologies and Tachtronics Instruments divisions of Motion Control Group. Educational resources in the region include Southwest State University in Marshall and Martin Luther College in New Ulm. Stations acquired include KNUJ(FM/AM) and KNSG(FM).

Located between Minneapolis and Des Moines, Mason City is the commercial and economic center of North Central Iowa. Employers from all sectors are well-represented, including manufacturers Kraft, Armour, and Minnesota Rubber, as well as services providers including The Principal Financial Group and APAC Teleservices. Cumulus stations in Northern Iowa include KCHA(FM/AM), KIAI(FM), KLKK(FM), KCZE(FM), KCZX(FM), and KGLO(AM).

Bismarck is the state capital of North Dakota and its largest city. According to BIA, a broadcast industry publisher, the Bismarck radio market ranks the 5th highest in the U.S. in terms of radio market revenues per dollar of retail sales, a key indicator of radio's relative attractiveness to advertisers. The market is ranked 259th overall in the U.S. by Arbitron. Cumulus acquired 100 kW FM stations KBYZ(FM), KACL(FM), and KKCT(FM), as well as KLXX(AM) in Bismarck.

Cumulus Media Inc. is a radio broadcasting company focused on the acquisition, operation, and development of radio stations in mid-sized and smaller radio markets in the U.S. The Company currently owns or operates 156 radio stations in 32 U.S. radio markets. Including all stations owned and pending, Cumulus controls 176 stations in 34 markets making it the nation's 4th largest radio broadcaster in terms of stations. Cumulus recently completed an initial public offering and the sale of public preferred stock and bonds for total gross proceeds of $402 million. Lew Dickey is Executive Vice Chairman of Cumulus. William Bungeroth is President of Cumulus' operating subsidiary, Cumulus Broadcasting Inc.

    CONTACT:  Cumulus Media Inc.
               Linda Fischer, 414/615-2800
     URL:      www.cumulusmedia.com