Westwood One Announces Cost Reduction Measures

Westwood One Announces Cost Reduction Measures

NEW YORK, March 24 /PRNewswire-FirstCall/ -- Westwood One, Inc. (OTC Bulletin Board: WWON) today announced two cost control measures to better align expenses with revenue. As previously disclosed, Westwood One is in the midst of a broad turnaround plan designed to strengthen its financial position and long-term business performance. The plan includes previously announced steps to refinance the Company's debt, launch new, high-profile network programming, and utilize technology in the traffic business to increase competitive differentiation and to reduce operating costs. As an integral part of this turnaround plan, the Company is introducing a salary reduction program for all employees and streamlining staffing levels in certain areas of operation. Adjustments to compensation will be based on a sliding scale and determined by an employee's compensation level. Senior management will incur the highest percent decrease in base salary, with a reduction of 15%.

"Our turnaround plan calls for reducing operating expenses so that we can emerge from these difficult economic times a stronger Company that is better positioned for future growth," said Westwood One President and CFO Rod Sherwood. "This is an ongoing process, and we are asking every member of the Company, from senior management to staff employees to share in this effort to help improve the Company's performance over the long term. We appreciate the many contributions our employees, unions and partners have made and continue to make to Westwood One. Once we have aligned our cost structure with our revenue trajectory, we will have strengthened the financial health of the Company and better positioned the Company for future success," he concluded.

Under the turnaround initiative, Westwood One has made significant progress by securing an agreement in principle with its lenders to refinance the Company's debt, and signing agreements for high-profile programming such as the NFL, Masters Tournament and The Fred Thompson Show. Other strategic measures the Company is presently undertaking include:

-- Implementing technology-based traffic information systems to enhance
Metro Traffic's industry leading traffic reports and reduce aviation
costs;
-- Introducing performance-based accountability measures on station
compensation and addressing unprofitable and low margin programs; and
-- Continuing its previously announced re-engineering of Metro Traffic
and other cost savings initiatives, which together with the measures
described above, are collectively anticipated to result in total
annual savings of approximately $55-$63 million.

About Westwood One

Westwood One (BULLETIN BOARD: WWON) is the largest independent provider of network radio programming and the largest provider of traffic information in the U.S. Westwood One serves more than 5,000 radio and TV stations in the U.S. Westwood One provides over 150 news, sports, music, talk and entertainment programs, features and live events to numerous media partners. Through its Metro Traffic division, Westwood One provides traffic reporting and local news, sports and weather to over 2,200 radio and TV stations. Westwood One also provides digital and other cross-platform delivery of its network and Metro content.

Certain statements in this release 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 Westwood One to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases "guidance," "expect," "anticipate," "estimates" and "forecast" and similar words or expressions are intended to identify such forward-looking statements. In addition any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this news announcement include, but are not limited to: our ability to negotiate and execute definitive documentation of the transactions contemplated by the refinancing and infusion of additional capital; our ability to continue as a going concern; and obtaining requisite approval by Westwood One's Board of Directors and antitrust regulatory authorities for the transactions contemplated by the infusion of additional capital. Other key risks are described in Westwood One's reports filed with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Except as otherwise stated in this news announcement, Westwood One does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

Source: Westwood One, Inc.

CONTACT: Peter Sessa, Westwood One, +1-212-641-2053,
peter_sessa@westwoodone.com

Web Site: http://www.westwoodone.com/

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