|FOR IMMEDIATE RELEASE
March 1, 2004
Cumulus Media Inc. (NASDAQ: CMLS) today announced it has signed an agreement to purchase stations from Premier Marketing Group, which owns KFRU-AM, KBXR-FM, KOQL-FM and KPLA-FM serving Columbia, MO (market rank #251) and KLIK-AM, KBBM-FM and KJMO-FM serving Jefferson City, MO. The purchase price is $38.75 million, $37.5 million of which is payable, at the option of Cumulus, in cash or shares of Cumulus Media Class A common stock.* The remaining $1.25 million in purchase price is payable in cash at closing. The closing of this transaction is expected to occur during the fourth quarter of 2004 or the first quarter of 2005. Cumulus will operate the stations under the terms of a local marketing agreement commencing March 1, 2004.
Cumulus' Chairman and CEO, Lew Dickey, commented, "Following our recent entry into Kansas City, the highly accretive Premier acquisition is an excellent strategic fit as we gain great positions in two additional Missouri markets - rapidly growing Columbia and state capital, Jefferson City. These clusters will add a substantial revenue base to the Company and we look forward to the cluster's contribution to our growth and results of operations."
Cumulus Media Inc. is the second-largest radio company in the United States based on station count. Giving effect to the completion of all announced pending acquisitions and divestitures, Cumulus Media will own and operate 301 radio stations in 61 mid-size, U.S. media markets. The company's headquarters are in Atlanta, Georgia, and its web site is www.cumulus.com.
George R. Reed represented the seller in this transaction.
* Pending FCC Approval