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Cumulus Media Inc. Completes Formation of Cumulus Media Partners and Acquisition of Susquehanna Radio.

ATLANTA -- Cumulus Media Partners, a private partnership created by Cumulus Media Inc. (NASDAQ: CMLS) Bain Capital, The Blackstone Group and Thomas H. Lee Partners, announced the successful completion of the acquisition of the radio broadcasting business of Susquehanna Pfaltzgraff Company. The deal, valued at approximately $1.2 billion was completed on May 5, 2006. Cumulus Media has entered into a management agreement with Cumulus Media Partners, pursuant to which the management of Cumulus will manage the operations of Media Partners' subsidiaries.

In connection with this acquisition and the formation of Media Partners, Cumulus contributed four radio stations (including related licenses and assets) in the Houston and Kansas City markets in exchange for membership interests in Media Partners.

Lew Dickey the Chairman & CEO of Cumulus will also serve as the Chairman & CEO of Media Partners. Mr. Dickey commented, "We are pleased to announce the closing of this transaction and are excited to begin working with an enormously talented group of people to maximize the potential of these great assets."

William H. Simpson, President & CEO of Susquehanna Pfaltzgraff Co., stated, "The Susquehanna Radio stations and their many outstanding employees have been a tremendous source of pride for our Company. Their reputation in the industry is unparalleled, and we wish them continued growth and success in the years ahead under the leadership of Cumulus Media Partners."

A portion of the consideration for the radio broadcasting business of Susquehanna Pfaltzgraff has been provided by a combination of senior and subordinated indebtedness incurred by one or more subsidiaries of Media Partners.

Cumulus Media Partners will own and operate 33 radio stations in 8 markets including: San Francisco, Dallas, Houston, Atlanta, Indianapolis, Cincinnati, Kansas City and York, PA. Cumulus Media Inc., is the second-largest radio company in the United States based on station count. Giving effect to the completion of this acquisition, Cumulus Media Inc., directly or indirectly through its investment in Cumulus Media Partners, will own or operate 345 radio stations in 67 U.S. media markets. Headquarters for both companies are in Atlanta, Georgia.
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Publication:Business Wire
Date:May 5, 2006
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