Cumulus Media Inc. Announces First Quarter 2001 Results.

Business Editors

ATLANTA--(BUSINESS WIRE)--May 8, 2001

Q1 Same Station BCF Grows 111.9%

Q1 Pro Forma EBITDA Grows 65.5%

Cumulus Media Inc.'s (NASDAQ: CMLS) first quarter financial results conference call will be later this morning, Tuesday May 8, 2001 at 11:00 AM Eastern Time to review the Company's first quarter financial results.

The call will be open to the general public on a listen only basis. The conference call dial in number is [phone] 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 for seven business days. Domestic callers can access the replay by dialing [phone]. International callers may access the replay by dialing [phone] and using 1249 as the PIN code.

Cumulus Media Inc. (NASDAQ: CMLS) today reported results for the three month period ended March 31, 2001. The quarter ended March 31, 2001 was marked by meaningful cash flow and margin improvement from the prior year due to the realization of operating expense savings resulting from management actions taken in the 2nd half of 2000.

First Quarter, 2001 Operating Performance

For the three months ended March 31, 2001 net revenues decreased $3.1 million, or 6.6%, to $44.6 million compared to $47.7 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 first 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 $3.8 million, or 69.5%, to $9.2 million from $5.4 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 $4.6 million, or 631.8% to $5.3 million from $0.7 million for the same period in 2000.

Basic and diluted loss per common share was ($0.10) for the three months ended March 31, 2001. This compares favorably to a basic and diluted loss per common share of ($0.39) for the three months ended March 31, 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 ($7.2) million, or ($0.20) per common share for the three months ended March 31, 2001. This compares favorably to ATCF of ($9.5) million, or ($0.27) per common share for the three months ended March 31, 2000.

On a same station basis, net revenues for the 167 stations in 32 markets operated for at least a full year decreased $0.6 million, or 2.0%, to $29.1 million for the three months ended March 31, 2001, compared to net revenues of $29.7 million for the three-month period ended March 31, 2000. Same station Broadcast Cash Flow increased $2.7 million, or 111.9%, to $5.0 million for the three months ended March 31, 2001, compared to $2.4 million for the three months ended March 31, 2000.

On a pro forma basis, after all announced acquisitions and divestitures, net revenues for the 226 stations in 46 markets decreased $1.1 million, or 2.3%, to $44.1 million for the three months ended March 31, 2001, compared to pro forma net revenues of $45.2 million for the three-month period ended March 31, 2000. Pro forma Broadcast Cash Flow increased $2.5 million, or 37.5%, to $9.3 million for the three months ended March 31, 2001, compared to $6.7 million for the three months ended March 31, 2000.

Cumulus Chairman and CEO Lew Dickey noted, "We are tremendously pleased with the continued improvement in operating performance realized during the first quarter of 2001. We are achieving meaningful expense reductions across our entire platform as a direct result of the Company's operating practices and expense discipline. This expense discipline has resulted in meaningful margin expansion in a revenue environment the industry would characterize as 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."

The Company recorded $16.2 million of other income for the three months ended March 31, 2001. The largest component of this non-operating income was the non-recurring gain on the sale of assets in connection with the Company's completion of the third and final phase of the asset exchange and sale with Clear Channel Communications (NYSE: CCU) on January 18, 2001.

Executive Vice-President and Chief Financial Officer Marty Gausvik noted, "The first quarter results reflect the ongoing, cultural shift in process within our Company, with a focus on achieving operating performance and expense efficiencies. We have achieved meaningful expense reductions in our cost of sales during the first quarter of 2001, a critical first step in getting our cost of sales in line with our peer group. 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 226 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 [phone].

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.

                          CUMULUS MEDIA INC.
                      First Quarter 2001 Results
                        (dollars in thousands)

                                          Three Months Ended
                                                March 31

                                         2001             2000
                                         ----             ----
Historical:
Net Revenues                          $ 44,588          $ 47,717
Broadcast Cash Flow                      9,176             5,414
BCF Margins                               20.6%             11.3%

Markets Operated One Year (32 Markets; 167 Stations):
Net Revenues                          $ 29,071          $ 29,653
Broadcast Cash Flow(a)                   5,032             2,375
BCF Margins                               17.3%              8.0%

Pro Forma  (46 Markets; 226 Stations):
Net Revenues                          $ 44,101          $ 45,158
Broadcast Cash Flow(a)                   9,263             6,739
BCF Margins                               21.0%             14.9%
EBITDA(a)                                5,667             3,424
EBITDA Margin                             12.9%              7.6%

(a) Excludes the impact of any one-time and/or non-recurring charges


                            CAPITALIZATION
                        (dollars in thousands)

                                     March 31, 2001     March 31, 2001
                                         Actual          Pro Forma (1)
                                     --------------     --------------
Cash and cash equivalents              $ 31,809            $ 10,000
                                        =======             =======
Long-term debt, including current maturities:
 Term loan facility                     125,000             165,000
 Senior Subordinated Notes              160,000             160,000
 Other                                      227                 227
                                        -------             -------
  Total long-term debt                  285,227             325,227
                                        -------             -------

13.75% Series A Redeemable
 Preferred Stock                        121,544             121,544
12.00% Series B Redeemable
 Preferred Stock                          2,650               2,650

Total Stockholders' equity              468,546             468,546
                                        -------             -------

 Total capitalization                  $877,967            $917,967

  ========                    ========

(1) Pro Forma for all remaining acquisitions and divestitures


                          CUMULUS MEDIA INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share data)
                              (Unaudited)


                                Three Months Ended  Three Months Ended
                                      March 31,           March 31,
                                        2001                2000
                                        ----                ----

Gross broadcast revenues             $ 48,965            $ 51,854
Less:  Agency commissions              (4,377)             (4,137)
                                      -------             -------
Net broadcast revenues                 44,588              47,717
Station operating expenses             35,412              42,303
                                      -------             -------
  Broadcast Cash Flow                   9,176               5,414
Corporate G&A expense                   3,834               4,684
                                      -------             -------
  EBITDA                                5,342                 730
Depreciation and amortization          12,284               9,897
LMA fees                                1,014               1,179
Restructuring and other charges             0                   0
                                      -------             -------
Operating income (loss)                (7,956)            (10,346)
Other (income) expenses:
Interest expense                        7,967               7,636
Interest income                          (577)             (2,092)
Other income, net                     (16,248)                 (1)
Income (loss) before income taxes         902             (15,889)
Income tax expense (benefit)              288              (5,769)
Net income (loss)                         614             (10,120)
Preferred stock dividend, accretion
 of discount and deemed dividend        4,089               3,528
Net loss attributable to common
 stockholders                          (3,475)            (13,648)

Basic and diluted loss per
 common share                           (0.10)              (0.39)

Weighted average common shares         35,205              35,057