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Outline

“The Talented Mr. Dickey” Chairman, President, and CEO of Cumulus Media Inc.: Mr. Lewis W. Dickey

Company Background: Cumulus Owns and Operates 260 stations in 54 U.S. cities Targets primarily small to mid-size markets Toledo largest market Co-founded by Dickey in 1997 Cumulus built by over 130 transactions involving the purchasing of radio stations 2nd largest in terms of # of stations

Education and Background of Dickey: Family owned stations in Atlanta, Nashville, Toledo markets Inherited a ton of money Dickey and Cox ($6 mil –> $287 mil) Solid education: Bachelors – Stanford (Literature) Masters – Stanford (Literature) Masters – Harvard (Business)

Dickey’s Beginnings Began by running family’s companies, Midwestern Broadcasting and DBBC, right out of college Founded Stratford Research Company in 1985 Accomplished all this by 22

Dickey Accomplishments Author of “The Franchise – Building Radio Brands” in 1994 at 31 Industry’s leading source on competition and strategy Serves on the National Association of Broadcasters Board of Directors

Opportunity for Dickey Telecommunications Act of 1996 Dickey saw de-regulation as a business opportunity Small markets largely neglected Cluster stations together in small markets under one central management Two Dickeys pooled assets and founded Cumulus Media Inc.

Cumulus of Toledo 6 stations/6 formats All managed in one central location Advantages to both advertisers and Cumulus Cheaper and convenient for advertisers Monopolistic market and lower production/operating costs for Cumulus Station clusters allow for “regionality”

Dickey “Sneak-in” Approach Buy cheap low power station outside market Upgrade station Develop it until it serves entire major metro area Sometimes return and sell for profit Houston example Kansas City

Dickey’s Management Philosophy TCOMM Act of 1996 and de-regulation “not going to have an impact on the quality of radio” Cumulus places an emphasis on hiring and maintaining energetic and lively talent through strict interviewing policies Compelling programming – “live and local flavor” Custom-tailored to each market

Dickey’s Management Philosophy Dickey aims to own at least half of all major FM stations in each of its markets High audience share High percentage of the radio revenue in market Generally 40-75%

Future of Cumulus In radio you “must constantly evolve to meet your audiences need and have a finger on the pulse of the listening community” Internet Expand out West and Southwest Keep true to the open formats

Major Dickey Milestones 1985 Founds Stratford Research 1988 Becomes president of Midwestern Broadcasting Corp. 1994 Publishes “The Franchise – Building Radio Brands” 1997 Co-founds Cumulus 2000 Becomes Cumulus CEO