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Through the strength of our Christian Teaching and Talk format, the influence of our News Talk format
and the growing popularity of our Contemporary Christian Music format, we are well-positioned to improve upon our leadership position in Christian and family-themed radio.

Christian Teaching and Talk is our foundational format. Through this format a listener can
hear Bible teaching and sermons and gain answers to questions relating to daily life, from raising children to preserving religious legal rights in education and the workplace.
This format serves as both a learning resource and a personal support for listeners nationwide. In response, listeners call and write into these programs to ask questions, get
more materials on a subject, and receive study guides based on what they have learned on the radio.
Salem’s national station platform and focused programming strategy provide the company with the ability to consistently
offer block programmers on its Christian Teaching and Talk stations both scale and targeting efficiencies. Historically, and in 2006, more than 90 percent of Salem’s national
block programming partners renewed their respective relationships with Salem. As a result, Salem’s block programming business tends to be recession resilient and
provides a steady and consistent stream of revenue and cash flow.
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Through our CCM format, called The FISH® in most markets, we are able to bring listeners the words of inspirational
recording artists, set to upbeat contemporary music. Our music format is branded “Safe for the Whole Family®”, with sounds that everyone enjoys and lyrics that
parents appreciate. The CCM genre continues to be popular. The American Music Awards® annually honors and recognizes this format. According to Nielson Christian
SoundScan®, sales of Christian music, including digital, rose in 2006 making CCM the sixth most popular music genre in America. We believe this listener base has
been underserved in terms of radio coverage, especially in the larger markets.

News talk programming is the second most popular radio format in the country, based both on listenership and
number of radio stations. Research has shown that our News Talk format is highly complementary to our core
format of Christian Teaching and Talk. As programmed by Salem, both formats express conservative views and
family values. Our News Talk format also provides us with the opportunity to leverage syndicated talk
programming produced by Salem Radio Network® (SRN). Our nationally syndicated programs are distributed
through approximately 2,000 affiliates.
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