Market Leader in Christian and Conservative Media

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. 2

Market Leader in Christian and Conservative Media

Investment Highlights Leading media company serving 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 4

Overview for the Twelve Months Ended September 30, 2015 Publishing $23.6 9% Revenue: $263mm Digital Media $45.4 17% Broadcasting $193.6 74% Stations Salem Radio Network Broadcasting #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 Digital Media Approximately 160mm monthly page views Revenue generated through advertisements and e-commerce Fastest-growing segment of the company Publishing > 1 million print-on-demand Christian books published annually Publisher of five Christian magazines Recent acquisition of Regnery Publishing, publisher of conservative books Note: Dollars in millions 5

Our Target Audience 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 21 st 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. Source: Gallup, The Barna Group, Nielsen Audio, The Nielsen Company, Pew Research Center, LifeWay Research 6

Recent Study of our Christian Teaching and Talk Audience 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 of 6.1 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 Source: Nielsen Audio 7

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 mobile listening with usage of our mobile apps increasing by over 50% in the last year Source: Radar, Nielsen Audio, Inside Radio Today 8

Third Largest Radio Broadcaster in Top 25 Markets Ownership of Radio Stations Serving the Top 25 Markets 180 164 160 140 120 Approximately half of the adults in the US live in the top 25 markets, where stations typically have higher revenue, margins and asset values 100 94 80 72 60 46 40 20 24 20 23 35 34 32 9 10 9 9 27 18 9 8 5 5 5 3 6 1 0 Number of stations in the top 25 markets Number of top 25 markets represented 1) Includes announced acquisitions, divestitures, and exchanges for Salem. 9

Geographically Diversified Portfolio in Large Markets 117 Stations across 40 Markets The Company is well-diversified throughout the United States. Source: Radio Market Survey Population, Rankings & Information Fall 2015, published by The Nielsen Company. Market Ranking excludes Puerto Rico. 10

Five Strategic Radio Station Formats Christian Teaching and Talk 48% of radio revenue Christian Music The FISH 25% 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 13 stations (all FM) Reaches advertisers most desirable demographic, women ages 25 to 54 Salem Radio Revenue LTM Ended September 30, 2015 Programming Advertising Other News Talk 19% of radio revenue 31 stations (28 AM, 3 FM) Programmed via Salem Radio Network $81.4 46.1% $77.0 43.7% Spanish Christian Teaching and Talk 3% of radio revenue 9 stations (all AM) Two revenue streams: block programming and advertising $18.1 10.2% Business 3% of radio revenue 12 stations (11 AM, 1 FM) Two revenue streams: block programming and advertising Total $176.5mm Note: Dollars in millions 11

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 Christianthemed topics Christian Teaching and Talk: ~50 minutes per hour of national and local paid block programming 12

Salem Radio Network Over 2,700 Affiliates Bill Bennett s Morning in America The Mike Gallagher Show The Dennis Prager Show The Michael Medved Show The Hugh Hewitt Show The Eric Metaxas Show Number of Affiliates: 329 340 358 339 358 311 1,176 Affiliates $20.0 Salem Radio Network Revenue $16.0 417 Affiliates $12.0 64 Affiliates $8.0 $16.1 $16.9 $15.7 $4.0 Note: Dollars in millions 42 Affiliates $0.0 LTM 9/13 LTM 9/14 LTM 9/15 13

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 14

Rapid and Profitable Growth in Digital Media 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 Salem Digital Media Growth $45.4 $45.4 $50 $40 $33.7 $30 $26.3 $21.2 $20 $8.5 $10.9 $9.8 $10 $2.4 $5.1 $0 Note: Dollars in millions LTM 9/11 LTM 9/12 LTM 9/13 LTM 9/14 LTM 9/15 Revenues Operating Income 15

Salem Book and Magazine Publishing Publishing Revenue $25.0 $25.0 $23.6 $20.0 $11.1 $10.1 $15.0 $13.1 $10.0 $8.5 $9.5 $9.7 $5.0 $4.6 $4.4 $3.8 $0.0 LTM 9/13 LTM 9/14 LTM 9/15 Salem Publishing Xulon Press Regnery Note: Dollars in millions 16

Eagle Publishing Acquired January 10, 2014 Total Consideration: $8.5mm, plus up to $8.5mm in incentive payments (1) 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 (1) Base consideration and potential incentive payments payable over three years 17

A Conservative Media Powerhouse 31 News Talk Stations 18

Debt (in thousands) Leverage Ratio Debt and Leverage 400,000 380,000 Debt Balance Leverage Ratio 6.50 6.35 6.25 370,850 360,000 340,000 6.00 5.75 5.61 5.50 320,000 5.25 300,000 283,257 280,000 260,000 Long-term debt and leverage increased due to refinancing in March 2013 Significantly more free cash flow annually Commitment to reducing debt and leverage Target leverage below 4 to 1 5.00 4.75 4.50 4.25 19

Returning Value to Shareholders Quarterly dividend is $0.0650 per share Currently 5.4% dividend yield Represents approximately 20% of free cash flow 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% Dividends are not currently qualified dividends; instead, stockholders receive a more favorable tax treatment as a return of capital 20

Adjusted EBITDA (In millions) Attractive Free Cash Flow Yield $60.0 $50.0 $53.4 $53.8 $53.1 $0.3 $0.3 $0.2 $8.0 $9.8 $10.5 $49.0 $0.3 Cash Taxes Free Cash Flow Yield $40.0 $30.0 $24.5 $24.4 $14.2 $8.0 $14.4 Capital Expenditures Cash Interest Free Cash Flow LTM $ 26.28 Shares outstanding 25.46 FCF per share $ 1.03 Price $ 4.84 Free Cash Flow $20.0 $28.2 $26.3 FCF Yield 21.3% $10.0 $20.6 $19.3 $0.0 LTM 9/12 LTM 9/13 LTM 9/14 LTM 9/15 21

Salem Management Team Edward G. Atsinger III Chief Executive Officer, Salem Co-Founder Stuart W. Epperson Chairman of the Board, Salem Co-Founder David Santrella President, Broadcast Media (with Salem since 2001) David A. R. Evans President, New Media (with Salem since 2000) Evan D. Masyr Executive Vice President and Chief Financial Officer (with Salem since 2000) Christopher J. Henderson Senior Vice President, Legal and Human Resources, General Counsel, and Secretary (with Salem since 2001) 22

December 2015