BROADCASTING

DIGITAL

INVESTOR PUBLISHING PRESENTATIONINVESTOR PRESENTATION

NASDAQ: SALM | December 2019 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 Adjusted 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.Salemmedia.com, as part of the most current report on form 8-K and earnings release issued by .

1 Who We Are

 Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content 99 Radio Stations  Salem’s history dates back to 1974 with the launch of our first Christian Teaching and station, and went public in 1999 BROADCASTING

 We reach millions of Christians and conservatives daily across the nation with compelling content, fresh commentary and relevant information

 Three segments comprised of radio broadcasting, digital Bible Study media and book publishing Daily Bible DIGITAL Tools  Salem Media has one of the largest media platforms  99 radio stations featuring compelling Christian and conservative programs from organizations such as and Jay Sekulow Live, and hosts including Hugh Hewitt, , and  Multiple highly-trafficked websites such as PUBLISHING Christianity.com, BibleStudyTools.com, Crosswalk.com and Townhall.com

2 Investment Highlights

Addressing Rapidly-Growing End Markets: Radio Broadcasting and Digital Media  Immense weekly audience reaching over 268 million people, or 92% of Americans, on a weekly basis  Third largest radio broadcaster in the top 25 U.S. markets  Websites are a leading source for Christian and conservative content

Strong Free Cash Flow Generation  LTM 9/19 free cash flow of $12.3 million, or $0.46 per share . Free cash flow yield of 30.9%1

History of Capital Returns to Shareholders  Cash distribution of $0.10 per share, yielding 6.7%1  31 consecutive quarters of dividend distributions  Distribution is characterized as a return of capital, a more favorable tax treatment

Significant Presence in Rapidly-Growing Digital Media Business  Focused on the growth of local digital revenue with recent rollout of Salem Surround  Strategically investing in R&D and acquisitions to foster growth in digital media

1) As of December 10, 2019

3 Salem’s Reach and Impact

 Third largest radio broadcaster in the top 25 U.S. markets by station count  Largest commercial Christian radio broadcaster in America  RADIO Largest News Talk radio broadcaster in the top 25 U.S. markets by station count BROADCASTING

 Websites and mobile apps are a growing source of Christian and conservative content

. Salem’s website and app platform is visited by approximately 15 million people DIGITAL every month and growing steadily MEDIA

 Publisher of Christian and conservative books

. Authors include Jim Daly, Sebastian Gorka, Greg Laurie, David Limbaugh, Michelle BOOK Malkin, Dennis Prager, and Mark Steyn PUBLISHING

4 Our Integrated Multimedia Approach

Revenue LTM Radio Broadcasting September 30, 2019 . 99 stations across 37 markets, with approximately Digital 3,100 affiliates Media $40.9 16.0% Digital Media Publishing $21.6 8.4% . More than 150 million monthly page views $256.5M across hundreds of website properties

Radio Broadcasting Book Publishing $193.9 75.6% . Sales of more than 2 million books annually

Dollars in millions

5 Balance Sheet & Dividends

Select Balance Sheet Terms Strong Dividend History $ Millions Sep 30, 2019 Sep 30, 2018

 Currently 6.7% dividend yield¹ Cash & cash equivalents 0.0 0.0

 Cash & cash equivalents Receivables 45.0 38.1 intentionally low to maximize debt repayments and minimize FCC Licenses 340.4 379.2 cash interest  $30M revolving line of Total Assets 586.2 568.9 credit at LIBOR + 175bps Debt (Principal) 250.2 255.3  $148M Federal NOLs at December 31, 2018 Total Liabilities 391.6 342.5

Total Stockholders’ equity 194.7 226.5

1) As of December 10, 2019

6 Third Largest Radio Broadcaster in Top 25 U.S. Markets

Radio Broadcasting Digital Media Book Publishing

Ownership of Radio Stations Serving the Top 25 Markets 1

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

117 Approximately half of the adults in the U.S. live in the top 25 markets

59

40 34 32 28 28 24 22 22 26 11 7 9 8 6 6 9 5 2 1

iHeartMedia Entercom Salem 2 Univision Beasley Cumulus Urban One Cox Alpha Media Spanish Emmis Broadcasting System

1) Source: BIA/Kelsey and company filings. Market ranking excludes Puerto Rico. As of Fall 2019. 2) Includes announced acquisitions, divestitures, and exchanges for Salem.

7 Geographically Diversified Portfolio

Radio Broadcasting Digital Media Book Publishing

Seattle, WA Denver, CO Colorado Springs, CO Minneapolis, MN Chicago, IL Columbus, OH Detroit, MI , OH Pittsburgh, PA (12) 3 AM (18) 3 AM, 1 FM (85) 1 AM, 2 FM (15) 4 AM (3) 2 AM (35) 1 AM, 1 FM (13) 2 AM (34) 2 AM, 1 FM (28) 2 AM, 1 FM

Portland, OR Boston, MA (20) 3 AM, 3 FM (10) 2 AM

Sacramento, CA 3 New York, NY (26) 2 AM, 2 FM (1,19) 2 AM 6 San Francisco, CA Philadelphia, PA (4.36) 3 AM (9) 2 AM 4 2 Oxnard, CA 2 2 Washington, DC 2 (120) 1 FM 4 3 3 2 (7) 2 AM, 1 FM 3 4 2 3 , CA 3 1 Warrenton, VA (2) 1 AM, 2 FM 1 AM 1 3 3 1 San Bernardino, CA 3 Nashville, TN 2 3 (25) 1 AM 4 5 (39) 3 FM 4 Honolulu, HI 7 Greenville, SC (63) 3 AM, 4 FM 2 (57) 3 FM 2 3 2 1 San Diego, CA 1 Atlanta, GA (16) 2 AM (8) 4 AM, 1 FM

Phoenix, AZ Dallas, TX San Antonio, TX Houston, TX Little Rock, AR Tampa, FL Sarasota, FL Miami, FL Orlando, FL (14) 3 AM (5) 2 AM, 2 FM (24) 2 AM (6) 1 AM, 1 FM (88) 1 AM, 3 FM (17) 3 AM (69) 1 AM (11) 1 AM (29) 2 AM Top 25 Markets Markets 26-50 Other Markets

Source: Radio Market Survey Population, Rankings & Information – Fall 2019, published by The Nielsen Company. Market Ranking excludes Puerto Rico.

8 Three Strategic Radio Broadcasting Formats

Radio Broadcasting Digital Media Book Publishing

LTM September 2019 Radio Revenue Christian Christian Music – News Talk The FISH® Teaching and Talk Programming 11.4% 37 Stations + Sirius XM 12 Stations 31 Stations 41% of radio revenue 19% of radio revenue 18% of radio revenue Advertising Other $169.1M 47.7% 41.0%

Block Programming  Programming time sold to national non-profit ministries and local churches

 High renewal rates exceeding 95% annually; 2.0-3.5% rate increases

 Our top 10 programmers have averaged 31 years on the air

 Programming revenue comprises 48% of radio revenue and 31% of total revenue

9 : Serving 3,100 Affiliates

Radio Broadcasting Digital Media Book Publishing

The Hugh The Mike The Dennis America First with The Larry Elder The Eric Hewitt Show Gallagher Show Prager Show Dr. Sebastian Gorka Show Metaxas Show

Number of Affiliates: 450 431 421 368 410 343

Network Revenue 1,544 174 Affiliates Affiliates $25.0

$20.0

$15.0 675 47 Affiliates Affiliates $10.0 $22.5

$5.0

$0.0 $ in millions LTM 9/19

10 Multifaceted Internet Platform

Radio Broadcasting Digital Media Book Publishing

Salem Digital Media National Christian Websites 2.2%

National Conservative 45.7% Websites $40.9M 52.2%

Church E-Commerce Websites Programming Advertising Bible Study King James Tools Bible E-Commerce New Mobile Apps Daily Bible One Place Daily Devotion LTM 9/19

11 Christian and Conservative Books

Radio Broadcasting Digital Media Book Publishing

More than 75 books on the NY Times Best Seller List Publishing Revenue

Salem Traditional Book Publishing

13.4%

26.1% $21.6M 60.5%

Salem Self-Publishing Services

Traditional Self-Publishing Other

LTM 9/19

12 Why We Are Different

 Radio hosts drive listeners to websites BROADCASTING  Radio stations hold book signing events to grow book sales Unique Ability  Pastor events promote digital resources to Promote  Websites promote radio programs & Across All DIGITAL books Platforms

 Cross-selling between radio & digital with larger advertisers

PUBLISHING

13 Where We Are Going

Broadcasting  Launched Salem Surround a full-service nationwide multimedia advertising agency with locations in 33 markets

Digital  Strong diversification of traffic sources positions us for sustainable growth  Increase traffic to current sites through new mobile apps and cross promotion from our other media platforms . Added 65 mobile apps 2015 – 2019

Publishing  Continue to attract highly sought-after authors  Grow Salem Books imprint by signing high-profile Christian communicators

14 Key Takeaways

We are the market leader in Christian and 1 conservative media

We have built a robust multimedia 2 infrastructure that enables us to cross-promote hundreds of owned media properties

Capitalizing on the advertising market’s 3 transition to digital and mobile

Utilizing a strong cash-generating radio business 4 to invest in our growing initiatives, pay down debt and return capital to shareholders

15 Salem Management Team

Edward G. Atsinger III Stuart W. Epperson

Chief Executive Officer, Chairman of the Board, Salem Co-Founder Salem Co-Founder

David Santrella David A. R. Evans

President, Broadcast Media President, New Media (with Salem since 2001) (with Salem since 2000)

Evan D. Masyr Christopher J. Henderson

Executive Vice President and CFO Executive Vice President, Legal and Human (with Salem since 2000) Resources, General Counsel, and Secretary (with Salem since 2001)

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