Saga Communications, Inc. Reports Continued Strength in 2nd Quarter Operating Results - Company Financial Information

Cambridge Telcom Report, August 9, 1999

Saga Communications, Inc. (Amex: SGA) has announced continued consistent growth in its second quarter operating results. For the quarter ended June 30, 1999, net revenue increased 16.4% (4.8% on a same station basis) over the comparable period in 1998 to approximately $23.5 million. Broadcast cash flow (station operating income before depreciation and amortization) increased 21.8% (11.1% on a same station basis) to approximately $9.0 million for the quarter. Net income for the quarter increased by 35.4% to approximately $2.6 million ($.20 per share on a fully diluted basis) from approximately $1.9 million ($.15 per share on a fully diluted basis) for the comparable period in 1998. After tax cash flow for the quarter increased approximately 24.2% to approximately $4.8 million ($.36 per share on a fully diluted basis at June 30, 1999 compared to $.30 at June 30, 1999).

For the six months ended June 30, 1999, net revenue increased by 16.6% (5.7% on a same station basis) over the comparable period in 1998 to approximately $41.7 million and broadcast cash flow increased by 23.1% (12.3% on a same station basis) to approximately $14.6 million. Net income for the six-month period ended June 30, 1999 increased by 38.6% to approximately $3.2 million ($0.24 per share on a fully diluted basis at June 30, 1999 compared to $0.18 at June 30, 1998). After tax cash flow increased approximately 26.1% to $7.4 million ($0.57 per share on a fully diluted basis at June 30, 1999 compared to $0.45 at June 30, 1998).

Saga Communications, Inc. is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. The Company owns broadcast operations in 15 markets, including 26 FM and 16 AM radio stations, 2 state radio networks, 1 farm radio network, 4 TV stations and an equity interest in 6 FM radio stations serving Reykjavik, Iceland.

                  Saga Communications, Inc.
             Selected Consolidated Financial Data
             For The Three and Six Month Periods
                 Ended June 30, 1999 and 1998
           (amounts in 000's except per share data)

                    Three Months Ended          Six Months Ended
                         June 30,                    June 30,
                    1999          1998          1999          1998
Operating Results
Net revenue       $23,459       $20,159       $41,726       $35,779
Station operating expense
(excluding depreciation,
 amortization, corporate
 general and
 administrative)   14,431        12,746        27,165        23,948
Broadcast cash flow 9,028         7,413        14,561        11,831

Depreciation and
 amortization       1,959         1,539         3,762         3,167
Corporate overhead  1,471         1,244         2,638         2,261
Operating profit    5,598         4,630         8,161         6,403

Interest expense    1,451         1,143         2,828         2,283
Other (income)
 expense             (320)           82          (106)           93
Income before income
 tax                4,467         3,405         5,439         4,027
Income tax provision1,876         1,491         2,292         1,757
Net income         $2,591        $1,914        $3,147        $2,270
Earnings per share --
 basic and diluted   $.20          $.15          $.24          $.18
Weighted average
 common shares     13,050        12,710        12,958        12,703
Weighted average common
 shares and common
 equivalents       13,302        12,980        13,143        12,970

After tax
 cash flow *       $4,775        $3,846        $7,435        $5,897

After tax cash flow per share:
Basic                $.37          $.30          $.57          $.46
Diluted              $.36          $.30          $.57          $.45

Balance Sheet Data
Working capital                               $16,146        $7,481
Net fixed assets                               41,590        34,871
Net intangible and other assets                83,869        61,535
Total assets                                  151,898       117,581
Long term debt (including current portion)     82,836        62,566
Stockholders' equity                           52,879        40,758

*Defined as net income plus depreciation, amortization (excluding
film rights), other (income) expense, and deferred taxes

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