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June 2011June 2011Nasdaq: SALM

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 Communications.

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The Market Leader in The Market Leader in Christian and Family-Christian and Family-

Themed MediaThemed Media

The Market Leader in The Market Leader in Christian and Family-Christian and Family-

Themed MediaThemed Media

2010 HighlightsBank Amendment

Allows us to use revolver to buyback bonds

Increased size of revolver from $30 million to $40 million

Bond Redemptions

$30 million (maximum allowed under bond indenture)

Acquisitions

HotAir.com, a website blog featuring news, analysis and commentary, on February 2nd for $2.0 million

GodTube.com, Christian content and community websites, on June 8th for $2.5 million

WWRC-AM in Washington D.C. on August 3rd for $3.1 million

Samaritan Fundraising, a web-based fundraising products company, on September 20th for $0.8 million

Dividend

Cash payment on December 13th amounted to approximately $4.8 million

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Salem Overview

Salem Radio Stations

($159mm / $66mm / 77%)

#1 in commercial Christian radio broadcasting

95 stations(1) across 37 markets

3rd largest radio group in top 25 markets with 59 stations

One of three commercial radio broadcasters with stations in all top 10 markets

Salem Media Reps (SMR)

($0.4mm / ($4)mm / 0%)

Only national sales rep. firm in Christian radio

Responsible for placing $26mm in revenue on Salem radio stations and network

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

Approximately 2,000 affiliates in addition to owned & operated stations

Salem Radio Network (SRN)

($16mm / $4mm / 8%)

Internet

($21mm / $3mm / 10%)

Among the largest online destination for Christian and conservative content

Online presence leverages loyal radio listener base with over 85 million monthly page views

Publishing

($11mm / $0.2mm / 6%)

Publisher of print-on-demand Christian books

Publisher of six Christian and conservative-themed magazines

Last Twelve Months Ended December 31, 2010 (Revenue / EBITDA / % Revenue Contribution)

Total: $207mm / $51mm(2) / 100%

1) Includes announced acquisitions, divestitures and exchanges.2) Includes corporate expenses of $17 million.

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Salem’s multiple platforms give advertisers and ministries a highly effective means to reach the Christian audience

Geographically Diversified Portfolio in Large Markets

95 Stations Across 37 Markets

Note: Station and market ranking are as of Spring Book 2011. Market ranking is published by Arbitron and excludes Puerto Rico.1) San Francisco stations are rated in San Francisco (market size #4) and San Jose (market size #34) 2) New York stations are rated in New York City (market size #1) and Nassau-Suffolk (Long Island), NY (market size #17)3) Includes announced acquisitions, divestitures and exchanges

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Diversification By Market

Top 10 Salem Markets – Last Twelve Months December 2010

Broadcast Revenue

Top 10 Salem Markets – Last Twelve Months December 2010 Station

Operating Income

Total: $66.1mm (1)Total: $160.6mm (1)

1) Excludes network and corporate revenue and SOI.

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Los Angeles15%

Dallas11%

Atlanta7%

New York6%

Washington D.C.6%Portland

5%Chicago

5%

Other36%

San Francisco3%

Sacramento3%

Cleveland3%

Los Angeles18%

Dallas13%

Atlanta6%

New York6%

Washington D.C.8%

Other32%

Portland5%

Chicago4%

San Francisco4%

Sacramento2%

Cleveland2%

Three Strategic Radio Station Formats

ChristianTeaching and

Talk

39 stations (28 AM, 11 FM)

Two revenue streams: block programming and advertising

Typical hour includes 52 minutes of paid block programming time

Christian Music – The FISH®

11 stations (all FM)

Addresses growing popularity of contemporary Christian music

News Talk

24 stations (all AM)

Programmed via Salem’s talk radio network, SRN

Last Twelve Months December 2010 Broadcast Revenue

Total: $159.8mm (1)

Total: $62.7mm (1)

Last Twelve Months December 2010 Station Operating Income

1) Excludes network and corporate revenue and SOI.

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Christian Teaching & Talk

50%

Contemporary Christian Music

23%

News Talk19%

Other8%

Christian Teaching & Talk

64%

Contemporary Christian Music

23%

News Talk9%

Other4%

Salem Radio Network

$14.4

$15.0$15.2 $15.3

$16.0

$13.5

$14.0

$14.5

$15.0

$15.5

$16.0

$16.5

2006 2007 2008 2009 2010

Salem Radio Network Revenue

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Salem Broadcasting

Salem Net Broadcast Revenue – Quarterly

Salem Net Broadcast Revenue – Annual

Note: Dollars in millions.

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$108 $101 $9074 $75

$27 $29$30

28 $29

$72 $76 $75 70 $71

$-

$50

$100

$150

$200

$250

2006 2007 2008 2009 2010

Programming Revenue Advertising Revenue Other Broadcasting

$206 $206 $194$172 $175

$22 $24 $22 $22 $18 $19 $18 $19 $17 $20 $18 $20 $18

$7 $8 $7 $7$7 $7 $7 $7 $7

$8 $8 $7 $7

$18$18$18$18 $17 $18 $19 $19 $19 $19 $18 $17 $17

$-

$10

$20

$30

$40

$50

$60

1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11

Programming Revenue Advertising Revenue Other Broadcasting

$50

$48

$48

$48 $4

2$4

4$4

2$4

3$4

1

$45

$44

$45

$43

We serve the same niche audiences online and in print.

Christian Conservative Opinion

INTERNET PUBLISHING

Significant Internet and Publishing Businesses

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Salem Publishing Revenue - Quarterly

Publishing Revenue - Annual

Note: Dollars in millions.

Publishing

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$10.9 $11.8 $11.2

$8.0

$11.4

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

2006 2007 2008 2009 2010

$2.8 $2.9 $2.7 $2.7

$2.5

$3.2 $2.8

$2.4

$2.9

$-

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

1Q 2Q 3Q 4Q

2009 2010 2011

Internet

Internet Revenue – Quarterly

Internet Revenue – Annual

Note: Dollars in millions.

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$10

$13.5

$16.6 $16.2

$20.6

$-

$5.0

$10.0

$15.0

$20.0

$25.0

2006 2007 2008 2009 2010

$6.2

$4.6 $4.2

$3.8 $3.7

$6.3

$5.1 $4.7 $4.5

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

1Q 2Q 3Q 4Q

2009 2010 2011

Since December 31, 2010

Bond Redemption

On June 1, 2011, we redeemed $17.5 million of bond debt at a price 103% of the face value– We have now redeemed $47.5 million of bond debt in 18 months

Acquisitions

WDDZ-AM, Pawtucket, Rhode Island, on March 2nd for $0.6 million

WorshipHouse Media on March 28th, an on-line church media and video ministry website, for $6.0 million

Dispositions

KKMO-AM in Seattle on January 6th for $2.7 million– Sold at a 10 multiple

KXMX-AM in Los Angeles on February 25th for $12.0 million– We received cash of $11.0 million and a promissory note of $1.0 million from the buyer– Sold at a 12 multiple

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Church Products Division

New Division Launched in April 2011

Launched in conjunction with the acquisition of WorshipHouse Media

Placed all of our assets that target the church in one division and under common management

Powerful Marketing Tool

Uniquely positioned to market to this audience

Radio stations hosted pastors’ events in 30 markets– Almost 20,000 pastors in attendance

Publishing division produces Preaching Magazine, a bi-monthly periodical for pastors– Operates preaching.com website

Approximately 110,000 e-mail addresses of pastors

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June 2011June 2011Nasdaq: SALM