December 2015

Safe Harbor

Certain statements in this presentation constitute “forward-looking statements” within the

meaning of the private securities litigation reform act of 1995. Such forward-looking

statements involve 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.”

This presentation also contains “non-GAAP financial measures” within the meaning of

regulation G, specifically station operating income and EBITDA. In conformity with

regulation G, information reconciling the non-GAAP financial measures included in this

presentation to the most directly comparable financial measures prepared in accordance

with generally accepted accounting principles is available on the investor relations portion

of the company's website at www.salem.cc, as part of the most current report on form 8-K

and earnings release issued by Salem Media Group.

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Market Leader in Christian and Conservative Media

Investment Highlights

4

Leading media companyserving audiences interested in

Christian and conservative content

Integrated multi-media company

Large and growing audience

Generating significant free cash flow

Diverse revenue base

Significant digital revenue

Paying a quarterly dividend

Overview for the Twelve Months Ended September 30, 2015

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Broadcasting$193.674%

Pub-lishing$23.69%

Digital Media$45.417%

Revenue: $263mmStations

Salem Radio Network

#1 in commercial Christian radio broadcasting 117 stations across 40 markets

Full-service network featuring conservative talk, news and Christian programming

Over 2,700 affiliates in addition to owned & operated stations

Approximately 160mm monthly page views Revenue generated through advertisements and e-commerce Fastest-growing segment of the company

> 1 million print-on-demand Christian books published annually

Publisher of five Christian magazines Recent acquisition of Regnery Publishing, publisher of

conservative books

Broadcasting

Digital Media

Publishing

Note: Dollars in millions

Our Target Audience

Source: Gallup, The Barna Group, Nielsen Audio, The Nielsen Company, Pew Research Center, LifeWay Research

Salem’s Christian and Conservative Content has Substantial Reach

71% of American adults identify with a Christian religion. Although this represents an overall decline, the evangelical Protestant tradition continues to gain members.

56% of American adults believe the Bible should have a greater role in American society.

News/Talk/Info and Talk/Personality is the No. 1 format in Metros, and No. 2 only to Country overall for the largest share.

Christian Radio is the top growing format – over two-thirds of Christian radio stations finished 2014 with more listeners than they had in 2013.

Of any radio format, Contemporary Christian Music has the highest proportion of female listeners – a key advertising demographic. Its listeners rank high in education and income levels.

Rick Warren’s book The Purpose Driven Life, a guide for Christian living in the 21st century, has sold over 32 million copies since its release in 2002, becoming the bestselling non-fiction hardback book in history, with the exception of the Bible.

Hollywood is recognizing the size and buying power of our audience, distributing films such as Exodus, Noah, Son of God, and Heaven is for Real, affirming the market for faith-based content.

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Recent Study of our Christian Teaching and Talk Audience

Source: Nielsen Audio

Half of the listeners to Christian Teaching and Talk (CTT) stations are under the age of 55 Listening among the 18 to 34 audience is increasing

48% of these younger listeners are listening more in the last 12 months

The typical listener to CTT radio listens an average of6.1 hours per week to AM or FM radio

CTT listeners are more stable in marriage 69% of our CTT listeners are married, compared to 53% of the US

adult population

CTT listeners are huge supporters of the programs they hear 52% of the P-1 listeners surveyed had donated to a ministry at least

once in the last year

64% of listeners find the advertisers on Christian radio to be more credible than non-Christian stations

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Radio Remains a Viable Medium

AM/FM Radio reaches more than 92% of virtually every segment of the population weekly #1 medium 5am to 5pm beating TV, on-line, and mobile #1 medium for reaching adults 25-54

AM/FM Radio is second only to Live TV in Time Usage, and is ahead of Smartphones, Internet on PC, and other multimedia devices

AM/FM Radio “rules the road” with far more frequent users than all other in-car audio options 81% of drivers/passengers age 18+ listen in a typical month 53% of drivers/passengers listen “almost all of the time” or “most of the time”

AM/FM Radio has grown to 245 million weekly listeners; time spent listening has declined slightly, but is balanced by an increase in online listenership An estimated 143 million Americans

listen to online radio each month Our listeners stream over 4 million hours

of radio per month− TuneIn and iHeartRadio− PC and Mobile Streaming

We are seeing dramatic growth in our mobilelistening with usage of our mobile appsincreasing by over 50% in the last year

Source: Radar, Nielsen Audio, Inside Radio Today

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Third Largest Radio Broadcaster in Top 25 Markets

iHeartMedia

CBS Radio

EntercomCumulus

Univision

Radio One CoxBeasley

SpanishEmmis

Alpha Media

0

20

40

60

80

100

120

140

160

180

164

94

72

46

35 3432

27

18

9 8 6

2420

23

9 10 9 95 5 5 3 1

Number of stations in the top 25 markets Number of top 25 markets represented

(1)

1) Includes announced acquisitions, divestitures, and exchanges for Salem.

Ownership of Radio Stations Serving the Top 25 Markets

Approximately half of the adults in the US live

in the top 25 markets, where stations typically

have higher revenue, margins and

asset values

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Broadcasting

SystemSalem

Source: Radio Market Survey Population, Rankings & Information – Fall 2015, published by The Nielsen Company. Market Ranking excludes Puerto Rico.

Geographically Diversified Portfolio in Large Markets

The Company is well-diversified throughout the United States.

117 Stations across 40 Markets

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Programming Advertising Other

Five Strategic Radio Station Formats

Salem Radio Revenue – LTM Ended September 30, 2015Christian

Teaching and Talk48% of radio revenue

42 stations (30 AM, 12 FM)

Two revenue streams: block programming and advertising

Typical hour includes 50 minutes of paid block programming time

Christian Music – The FISH®

25% of radio revenue

13 stations (all FM)

Reaches advertisers’ most desirable demographic, women ages 25 to 54

News Talk19% of radio revenue

31 stations (28 AM, 3 FM)

Programmed via Salem Radio Network

Spanish Christian Teaching and Talk

3% of radio revenue

9 stations (all AM)

Two revenue streams: block programming and advertising

Total $176.5mm

$77.043.7%

$81.446.1%

$18.110.2%

Business3% of radio revenue

12 stations (11 AM, 1 FM)

Two revenue streams: block programming and advertising

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Note: Dollars in millions

Overview of Block Programming

Block programming time is sold to local churches and national non-profit Christian ministries

– High renewal rates exceeding 95% annually

– Rate increases have generally been 2.5% – 5.0% over past several years (rates kept flat in 2010)

– Top 10 programmers have averaged over 20 years on the air and have remained relatively constant

– Programming revenue comprises 31% of total revenue

Content includes bible teaching, sermons and parenting advice among other Christian-themed topics

– Christian Teaching and Talk: ~50 minutes per hour of national and local paid block programming

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LTM 9/13 LTM 9/14 LTM 9/15$0.0

$4.0

$8.0

$12.0

$16.0

$20.0

$16.1 $16.9

$15.7

Salem Radio Network – Over 2,700 Affiliates

Salem Radio Network Revenue

Number of Affiliates: 329 340 358 339 358 311

1,176 Affiliates

64 Affiliates

42 Affiliates

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Bill Bennett’sMorning in America

The Mike Gallagher Show

The Dennis Prager Show

The Michael Medved Show

The Hugh Hewitt Show

The Eric Metaxas Show

Note: Dollars in millions

417 Affiliates

Salem Web Network

Starting with one website in 1999, Salem has grown its Internet platform through a series of strategic acquisitions and strong organic growth

National Christian Websites

Market Leader in the Christian content website space

National Conservative

Websites

Church E-Commerce Websites

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LTM 9/11 LTM 9/12 LTM 9/13 LTM 9/14 LTM 9/15

$0

$10

$20

$30

$40

$50

$21.2

$26.3

$33.7

$45.4 $45.4

$2.4

$5.1

$8.5 $10.9 $9.8

Salem Digital Media Growth

Digital Media is the fastest-growing segment of our business, with revenue and operating income growing at a CAGR of 21% and 42%, respectively, since 2011

Rapid and Profitable Growth in Digital Media

Revenues Operating Income

Revenue CAGR: 21.0%

Operating Income CAGR: 42.1%

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Note: Dollars in millions

Salem Book and Magazine Publishing

Publishing Revenue

LTM 9/13 LTM 9/14 LTM 9/15$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$4.6 $4.4 $3.8

$8.5 $9.5 $9.7

$11.1 $10.1

Xulon PressSalem Publishing

$13.1

$25.0

$23.6

Regnery

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Note: Dollars in millions

Eagle Publishing – Acquired January 10, 2014

Total Consideration: $8.5mm, plus up to $8.5mm in incentive payments(1)

(1) Base consideration and potential incentive payments payable over three years

The country’s premier publisher of conservative books, publishing top conservative authors. Regnery has placed more than 55 books on the New York Times bestseller list, including 9 titles that were #1 bestsellers

A leading conservative opinion website providing news and commentary on issues of interest to the conservative community

The singular hub on conservative grassroots collaboration on the right. Editor-in-Chief Erick Erickson is a political contributor to CNN, FOX News contributor, frequent Rush Limbaugh guest, and radio show host on WSB Atlanta

Eagle Financial Publications offers weekly free e-letters providing basic financial commentary and analysis in addition to paid monthly newsletter subscriptions

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A Conservative Media Powerhouse

31 News Talk Stations

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Debt and Leverage

Target leverage – below 4 to 1

Long-term debt and leverage increased due to refinancing in March 2013

Significantly more free cash flow annually Commitment to reducing debt and leverage

Q3 06

Q1 07

Q3 07

Q1 08

Q3 08

Q1 09

Q3 09

Q1 10

Q3 10

Q1 11

Q3 11

Q1 12

Q3 12

Q1 13

Q3 13

Q1 14

Q3 14

Q1 15

Q3 15

260,000

280,000

300,000

320,000

340,000

360,000

380,000

400,000

4.25

4.50

4.75

5.00

5.25

5.50

5.75

6.00

6.25

6.50

Debt Balance Leverage Ratio

De

bt

(in

th

ou

sa

nd

s)

Le

ve

rag

e R

ati

o

6.35

283,257

370,850

5.61

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Returning Value to Shareholders

Currently 4.4% dividend yield

Represents approximately 20% of free cash flow

Quarterly dividend is $0.0650 per share

Quarter Amount Increase

Q3 13 $0.0525 5.0%

Q4 13 $0.0550 5.0%

Q1 14 $0.0575 4.5%

Q2 14 $0.0600 4.3%

Q3 14 $0.0625 4.2%

Q4 14 $0.0650 4.0%

Q1 15 $0.0650 0.0%

Q2 15 $0.0650 0.0%

Q3 15 $0.0650 0.0%

Q4 15 $0.0650 0.0%

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Dividends are not currently qualified dividends; instead, stockholders

receive a more favorable tax treatment as a return of capital

Attractive Free Cash Flow Yield

Free Cash Flow LTM 26.28$

Shares outstanding 25.46

FCF per share 1.03$

Price 5.94$

FCF Yield 17.3%

Free Cash Flow Yield

LTM 9/12 LTM 9/13 LTM 9/14 LTM 9/15$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$20.6 $19.3

$28.2 $26.3

$24.5 $24.4

$14.2 $14.4

$8.0 $9.8 $10.5

$8.0

$0.3 $0.3 $0.2

$0.3 Cash Taxes

Capital Expenditures

Cash Interest

Free Cash FlowAd

just

ed E

BIT

DA

(In

mil

lio

ns)

$53.4 $53.8 $53.1

$49.0

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Salem Management Team

Edward G. Atsinger III

Chief Executive Officer, Salem Co-Founder

Stuart W. Epperson

Chairman of the Board, Salem Co-Founder

Evan D. Masyr

Executive Vice President and Chief Financial Officer

(with Salem since 2000)

David Santrella

President, Broadcast Media

(with Salem since 2001)

David A. R. Evans

President,New Media

(with Salem since 2000)

Christopher J. Henderson

Senior Vice President,Legal and Human Resources,

General Counsel, and Secretary(with Salem since 2001)

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December 2015