**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

----

**FORM      10-Q**

| [X] | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE                ACT                OF 1934 |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| [   ] | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE                ACT                OF 1934 |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

**SALEM      COMMUNICATIONS CORPORATION**

| **DELAWARE**(STATE                OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION)                                           |   | **77-0121400**(I.R.S.                EMPLOYER IDENTIFICATION NUMBER) |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|
|                                                                                                                                |   |                                                                 |
| **4880                SANTA ROSA ROAD CAMARILLO, CALIFORNIA**(ADDRESS                OF PRINCIPAL EXECUTIVE                OFFICES) |   | **93012**(                ZIP CODE)                                  |

**REGISTRANT’S      TELEPHONE NUMBER, INCLUDING AREA CODE: (805) 987-0400**

| Class                A                                 |   | Outstanding                at May 2, 2007 |
|--------------------------------------------------------|--------|-------------------------------------------|
| Common                Stock, $0.01 par value per share |   | 18,296,324                shares          |

| Class                B                                 |   | Outstanding                at May 2, 2007 |
|--------------------------------------------------------|--------|-------------------------------------------|
| Common                Stock, $0.01 par value per share |   | 5,553,696                shares           |

----

**SALEM      COMMUNICATIONS CORPORATION**

**INDEX**

|                                          |                                                                                                                                   |   | PAGE                NO. |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|
|                                          |                                                                                                                                   |   |                    |
| COVER                PAGE                     |                                                                                                                                   |   |
| INDEX                                         |                                                                                                                                   |   |
| PART                I - FINANCIAL INFORMATION |                                                                                                                                   |   |
|                                          | Item 1.                Financial Statements                                                                                       |   | 2                       |
|                                          | Item 2.                Management’s Discussion and Analysis of Financial Condition and                Results of Operations |   | 19                      |
|                                          | Item 3.                Quantitative and Qualitative Disclosures About Market Risk                                                 |   | 30                      |
|                                          | Item 4.                Controls and Procedures                                                                                    |   | 32                      |
| PART                II - OTHER INFORMATION    |                                                                                                                                   | 32     |
|                                          | Item 1.                Legal Proceedings                                                                                          |   | 32                      |
|                                          | Item                1A. Risk Factors                                                                                                   |   | 32                      |
|                                          | Item 2.                Unregistered Sales of Equity Securities and Use of                Proceeds                                 |   | 32                      |
|                                          | Item 3.                Defaults Upon Senior Securities                                                                            |   | 33                      |
|                                          | Item 4.                Submission of Matters to a Vote of Security Holders                                                        |   | 33                      |
|                                          | Item 5.                Other Information                                                                                          |   | 33                      |
|                                          | Item 6.                Exhibits                                                                                                   |   | 33                      |
| SIGNATURES                                    |                                                                                                                                   | 45     |
| EXHIBIT                INDEX                  |                                                                                                                                   | 46     |

**FORWARD-LOOKING      STATEMENTS **

----

** PART      I**
**      - FINANCIAL INFORMATION**

**SALEM      COMMUNICATIONS CORPORATION**

**ITEM      1.      FINANCIAL STATEMENTS      (UNAUDITED)**
** **

----

**SALEM      COMMUNICATIONS CORPORATION**

**CONDENSED      CONSOLIDATED BALANCE SHEETS **

**(Dollars      in thousands, except share data)**

|                                                                                                                                                |                                                                                                                                                                                                                                                        |   | December                31, 2006 | **March                31, 2007** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-----------------------------------|
|                                                                                                                                                |                                                                                                                                                                                                                                                        |   | (Note                1)          | **(Unaudited)**                   |
| **ASSETS**                                                                                                                                          |
| Current                assets:                                                                                                                      |                                                                                                                                                                                                                                                        |   |                             |                              |   |   |   |
|                                                                                                                                                | Cash                and cash equivalents                                                                                                                                                                                                                    |   | $                                | 710                               |   | **$** | **598** |   |
|                                                                                                                                                | Accounts                receivable (net of allowance for doubtful accounts of $7,606 in 2006                and                $7,318 in 2007)                                                                                                              |   |                             | 31,984                            |   |   | **30,214** |   |
|                                                                                                                                                | Other                receivables                                                                                                                                                                                                                            |   |                             | 551                               |   |   | **507** |   |
|                                                                                                                                                | Prepaid                expenses                                                                                                                                                                                                                             |   |                             | 2,330                             |   |   | **2,406** |   |
|                                                                                                                                                | Income                tax receivable                                                                                                                                                                                                                        |   |                             | —                           |   |   | **30** |   |
|                                                                                                                                                | Deferred                income taxes                                                                                                                                                                                                                        |   |                             | 5,020                             |   |   | **4,943** |   |
| Total                current assets                                                                                                                 |                                                                                                                                                                                                                                                        |   | 40,595                           |                              |   | **38,698** |   |
| Property,                plant and equipment (net of accumulated depreciation of $74,766 in                2006                and $76,458 in 2007) |                                                                                                                                                                                                                                                        |   | 128,713                          |                              |   | **129,620** |   |
| Broadcast                licenses                                                                                                                   |                                                                                                                                                                                                                                                        |   | 476,544                          |                              |   | **473,571** |   |
| Goodwill                                                                                                                                            |                                                                                                                                                                                                                                                        |   | 20,606                           |                              |   | **20,606** |   |
| Other                indefinite-lived intangible assets                                                                                             |                                                                                                                                                                                                                                                        |   | 2,892                            |                              |   | **2,892** |   |
| Amortizable                intangible assets (net of accumulated amortization of $10,846 in                2006 and                $11,657 in 2007) |                                                                                                                                                                                                                                                        |   | 8,368                            |                              |   | **7,878** |   |
| Bond                issue costs                                                                                                                     |                                                                                                                                                                                                                                                        |   | 593                              |                              |   | **556** |   |
| Bank                loan fees                                                                                                                       |                                                                                                                                                                                                                                                        |   | 2,996                            |                              |   | **2,741** |   |
| Fair                value of interest rate swap agreements                                                                                          |                                                                                                                                                                                                                                                        |   | 1,290                            |                              |   | **913** |   |
| Other                assets                                                                                                                         |                                                                                                                                                                                                                                                        |   | 3,667                            |                              |   | **3,770** |   |
| Total                assets                                                                                                                         |                                                                                                                                                                                                                                                        | $      | 686,264                          |                              | **$** | **681,245** |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                       |
| Current                liabilities                                                                                                                  |                                                                                                                                                                                                                                                        |   |                             |                              |   |   |   |
|                                                                                                                                                | Accounts                payable                                                                                                                                                                                                                             |   | $                                | 3,421                             |   | **$** | **2,504** |   |
|                                                                                                                                                | Accrued                expenses                                                                                                                                                                                                                             |   |                             | 6,446                             |   |   | **5,577** |   |
|                                                                                                                                                | Accrued                compensation and related expenses                                                                                                                                                                                                    |   |                             | 7,033                             |   |   | **7,935** |   |
|                                                                                                                                                | Accrued                interest                                                                                                                                                                                                                             |   |                             | 4,275                             |   |   | **5,866** |   |
|                                                                                                                                                | Deferred                revenue                                                                                                                                                                                                                             |   |                             | 4,050                             |   |   | **4,610** |   |
|                                                                                                                                                | Current                portion of long-term debt and capital lease obligations                                                                                                                                                                              |   |                             | 2,048                             |   |   | **2,431** |   |
|                                                                                                                                                | Income                tax payable                                                                                                                                                                                                                           |   |                             | 22                                |   |   | — |   |
| Total                current liabilities                                                                                                            |                                                                                                                                                                                                                                                        |   | 27,295                           |                              |   | **28,923** |   |
| Long-term                debt and capital lease obligations, less current portion                                                                   |                                                                                                                                                                                                                                                        |   | 358,978                          |                              |   | **346,821** |   |
| Deferred                income taxes                                                                                                                |                                                                                                                                                                                                                                                        |   | 53,935                           |                              |   | **58,114** |   |
| Deferred                revenue                                                                                                                     |                                                                                                                                                                                                                                                        |   | 7,063                            |                              |   | **7,123** |   |
| Other                liabilities                                                                                                                    |                                                                                                                                                                                                                                                        |   | 1,277                            |                              |   | **1,146** |   |
| Total                liabilities                                                                                                                    |                                                                                                                                                                                                                                                        |   | 448,548                          |                              |   | **442,127** |   |
| Commitments                and contingencies                                                                                                        |                                                                                                                                                                                                                                                        |   |                             |                              |   |   |   |
| Stockholders’                equity                                                                                                           |                                                                                                                                                                                                                                                        |   |                             |                              |   |   |   |
|                                                                                                                                                | Class A                common stock, $0.01 par value; authorized 80,000,000 shares; 20,424,242                issued and 18,293,824 outstanding at December 31, 2006 and 20,426,742                issued and 18,296,324 outstanding at March 31, 2007 |   |                             | 204                               |   |   | **204** |   |
|                                                                                                                                                | Class B                common stock, $0.01 par value; authorized 20,000,000 shares; 5,553,696                issued and outstanding shares at December 31, 2006 and March 31,                2007                                                      |   |                             | 56                                |   |   | **56** |   |
|                                                                                                                                                | Additional                paid-in capital                                                                                                                                                                                                                   |   |                             | 221,466                           |   |   | **222,251** |   |
|                                                                                                                                                | Retained                earnings                                                                                                                                                                                                                            |   |                             | 47,433                            |   |   | **48,338** |   |
|                                                                                                                                                | Treasury                stock, at cost (2,130,418 shares at December 31, 2006 and March 31,                2007)                                                                                                                                            |   |                             | (32,218)                          |   |   | **(32,218)** |   |
|                                                                                                                                                | Accumulated                other comprehensive income                                                                                                                                                                                                       |   |                             | 775                               |   |   | **487** |   |
| Total                stockholders’ equity                                                                                                     |                                                                                                                                                                                                                                                        |   | 237,716                          |                              |   | **239,118** |   |
| Total                liabilities and stockholders’ equity                                                                                     |                                                                                                                                                                                                                                                        | $      | 686,264                          |                              | **$** | **681,245** |   |
| See                accompanying notes                                                                                                               |

----

**SALEM      COMMUNICATIONS CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS **

**(Dollars      in thousands, except share and per share data)**

**(Unaudited)      **

|                                                                                                                                                            |                                | **Three                  Months Ended**   |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------------|---------|
|                                                                                                                                                            |                                | **March                  31,**            |    |
|                                                                                                                                                            |                                | 2006                                      |    |   | **2007** |   |
|                                                                                                                                                            |                                | *(Dollars                  in thousands)* |    |
| Net                  revenue                                                                                                                                    |                                |
|                                                                                                                                                            | Radio                  broadcasting | $                                         | 48,774  |   |   | $ | **50,440** |   |
|                                                                                                                                                            | Non-broadcast                       |                                      | 3,252   |   |   |   | **5,654** |   |
| Consolidated                  net revenue                                                                                                                       | $                                   | 52,026                                    |    |   | $ | **56,094** |   |
|                                                                                                                                                            |                                |                                      |    |   |   |   |   |   |
| Operating                  expenses before depreciation, amortization and gain on disposal                  of                  assets                          |                                |                                      |
|                                                                                                                                                            | Radio                  broadcasting | $                                         | 31,694  |   |   | $ | **32,483** |   |
|                                                                                                                                                            | Non-broadcast                       |                                      | 3,432   |   |   |   | **5,271** |   |
|                                                                                                                                                            | Corporate                           |                                      | 6,440   |   |   |   | **5,814** |   |
| Consolidated                  operating expenses before depreciation, amortization and gain on                  disposal                  of assets             | $                                   | 41,566                                    |    |   | $ | **43,568** |   |
|                                                                                                                                                            |                                |                                      |    |   |   |   |   |   |
| Operating                  income from continuing operations before depreciation, amortization                  and                  gain on disposal of assets |                                |                                      |    |   |   |   |   |
|                                                                                                                                                            | Radio                  broadcasting | $                                         | 17,080  |   |   | $ | **17,957** |   |
|                                                                                                                                                            | Non-broadcast                       |                                      | (180)   |   |   |   | **383** |   |
|                                                                                                                                                            | Corporate                           |                                      | (6,440) |   |   |   | **(5,814)** |   |
| Consolidated                  operating income from continuing operations before depreciation,                  amortization and gain on disposal of assets     | $                                   | 10,460                                    |    |   | $ | **12,526** |   |
|                                                                                                                                                            |                                |                                      |    |   |   |   |   |   |
| Depreciation                                                                                                                                                    |                                |                                      |    |   |   |   |   |
|                                                                                                                                                            | Radio                  broadcasting | $                                         | 2,374   |   |   | $ | **2,665** |   |
|                                                                                                                                                            | Non-broadcast                       |                                      | 87      |   |   |   | **139** |   |
|                                                                                                                                                            | Corporate                           |                                      | 284     |   |   |   | **287** |   |
| Consolidated                  depreciation expense                                                                                                              | $                                   | 2,745                                     |    |   | $ | **3,091** |   |
|                                                                                                                                                            |                                |                                      |    |   |   |   |   |   |
| Amortization                                                                                                                                                    |                                |                                      |
|                                                                                                                                                            | Radio                  broadcasting | $                                         | 228     |   |   | $ | **67** |   |
|                                                                                                                                                            | Non-broadcast                       |                                      | 317     |   |   |   | **738** |   |
|                                                                                                                                                            | Corporate                           |                                      | 5       |   |   |   | **5** |   |
| Consolidated                  amortization expense                                                                                                              | $                                   | 550                                       |    |   | $ | **810** |   |
|                                                                                                                                                            |                                |                                      |    |   |   |   |   |   |
| Operating                  income from continuing operations before gain on disposal of                  assets                                                 |                                |                                      |    |   |   |   |   |
|                                                                                                                                                            | Radio                  broadcasting | $                                         | 14,478  |   |   | $ | **15,225** |   |
|                                                                                                                                                            | Non-broadcast                       |                                      | (584)   |   |   |   | **(494)** |   |
|                                                                                                                                                            | Corporate                           |                                      | (6,729) |   |   |   | **(6,106)** |   |
| Consolidated                  operating income from continuing operations before gain on disposal                  of                  assets                   | $                                   | 7,165                                     |    |   | $ | **8,625** |   |
|                                                                                                                                                            |                                |                                      |    |   |   |   |   |   |
| Total                  property, plant and equipment, net                                                                                                       |                                |                                      |    |   |   |   |   |
|                                                                                                                                                            | Radio                  broadcasting | $                                         | 115,604 |   |   | $ | **115,616** |   |
|                                                                                                                                                            | Non-broadcast                       |                                      | 2,830   |   |   |   | **3,516** |   |
|                                                                                                                                                            | Corporate                           |                                      | 10,279  |   |   |   | **10,488** |   |

----

**     SALEM      COMMUNICATIONS CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Dollars      in thousands)**

**(Unaudited)**

|                                                                                                                                                              |                                                                   |                                                         |     | Three                    Months Ended March 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|--------------------------------------------------------------|----------|-------------------------------------------------|--------|
|                                                                                                                                                              |                                                                   |                                                         |     | 2006                                            |   | **2007** |
| **OPERATING                    ACTIVITIES**                                                                                                                       |                                                                   |                                                         |     |
| Income                    from continuing operations                                                                                                              |                                                                   | $                                                            | 2,386    |                                            | **$**  | **2,965** |   |
| Adjustments                    to reconcile income from continuing operations to net cash provided                    by                    operating activities: |                                                                   |                                                         |     |                                            |   |   |   |
|                                                                                                                                                              | Non-cash                    stock-based compensation                   |                                                         |     | 1,309                                           |   |   | **754** |   |
|                                                                                                                                                              | Depreciation                    and amortization                       |                                                         |     | 3,295                                           |   |   | **3,901** |   |
|                                                                                                                                                              | Amortization                    of bond issue costs and bank loan fees |                                                         |     | 386                                             |   |   | **292** |   |
|                                                                                                                                                              | Amortization                    and accretion of financing items       |                                                         |     | (126)                                           |   |   | **31** |   |
|                                                                                                                                                              | Provision                    for bad debts                             |                                                         |     | 662                                             |   |   | **464** |   |
|                                                                                                                                                              | Deferred                    income taxes                               |                                                         |     | 1,743                                           |   |   | **2,388** |   |
|                                                                                                                                                              | Gain                    on disposal of assets                          |                                                         |     | (3,529)                                         |   |   | **(3,269)** |   |
|                                                                                                                                                              | Changes                    in operating assets and liabilities:        |                                                         |     |                                            |   |   |   |   |
|                                                                                                                                                              |                                                                   | Accounts                    receivable                       |     |                                            | 1,506  |   |   | **1,320** |   |
|                                                                                                                                                              |                                                                   | Prepaid                    expenses and other current assets |     |                                            | 60     |   |   | **(76)** |   |
|                                                                                                                                                              |                                                                   | Accounts                    payable and accrued expenses     |     |                                            | 805    |   |   | **816** |   |
|                                                                                                                                                              |                                                                   | Deferred                    revenue                          |     |                                            | 299    |   |   | **620** |   |
|                                                                                                                                                              |                                                                   | Other                    liabilities                         |     |                                            | (124)  |   |   | **(29)** |   |
|                                                                                                                                                              |                                                                   | Income                    tax payable                        |     |                                            | 41     |   |   | **(22)** |   |
| Net                    cash provided by continuing operating activities                                                                                           |                                                                   |                                                         | 8,713    |                                            |   | **10,155** |   |
| **INVESTING                    ACTIVITIES**                                                                                                                       |                                                                   |                                                         |     |                                            |   |   |   |
| Capital                    expenditures                                                                                                                           |                                                                   |                                                         | (5,680)  |                                            |   | **(4,081)** |   |
| Purchases                    of radio station assets                                                                                                              |                                                                   |                                                         | (17,830) |                                            |   | — |   |
| Purchase                    of non-broadcast properties                                                                                                           |                                                                   |                                                         | (6,296)  |                                            |   | **(300)** |   |
| Proceeds                    from disposals of assets                                                                                                              |                                                                   |                                                         | 4        |                                            |   | **7,060** |   |
| Other                                                                                                                                                             |                                                                   |                                                         | 635      |                                            |   | **13** |   |
| Net                    cash provided by (used in) investing activities                                                                                            |                                                                   |                                                         | (29,167) |                                            |   | **2,692** |   |
| **FINANCING                    ACTIVITIES**                                                                                                                       |                                                                   |                                                         |     |                                            |   |   |   |
| Repurchases                    of Class A common stock                                                                                                            |                                                                   |                                                         | (15,149) |                                            |   | — |   |
| Proceeds                    from borrowings under credit facilities                                                                                               |                                                                   |                                                         | 32,578   |                                            |   | **2,500** |   |
| Payments                    of long-term debt                                                                                                                     |                                                                   |                                                         | (1)      |                                            |   | **(15,165)** |   |
| Proceeds                    from exercise of stock options                                                                                                        |                                                                   |                                                         | 24       |                                            |   | **30** |   |
| Tax                    benefit related to stock options exercised                                                                                                 |                                                                   |                                                         | 1        |                                            |   | **1** |   |
| Payments                    on loans and capital lease obligations                                                                                                |                                                                   |                                                         | (7)      |                                            |   | **(13)** |   |
| Other                                                                                                                                                             |                                                                   |                                                         | —  |                                            |   | **(312)** |   |
| Net                    cash provided by (used in) by financing activities                                                                                         |                                                                   |                                                         | 17,446   |                                            |   | **(12,959)** |   |
| **CASH                    FLOWS FROM DISCONTINUED OPERATIONS**                                                                                                    |                                                                   |                                                         |     |                                            |   |   |   |
| Operating                    cash flows                                                                                                                           |                                                                   |                                                         | (971)    |                                            |   | — |   |
| Investing                    cash flows                                                                                                                           |                                                                   |                                                         | 695      |                                            |   | — |   |
| Total                    cash used in discontinued operations                                                                                                     |                                                                   |                                                         | (276)    |                                            |   | — |   |
| Net                    decrease in cash and cash equivalents                                                                                                      |                                                                   |                                                         | (3,284)  |                                            |   | **(112)** |   |
| Cash                    and cash equivalents at beginning of year                                                                                                 |                                                                   |                                                         | 3,979    |                                            |   | **710** |   |
| Cash                    and cash equivalents at end of period                                                                                                     |                                                                   | $                                                            | 695      |                                            | **$**  | **598** |   |
| **Supplemental                    disclosures of cash flow information:**                                                                                         |                                                                   |                                                         |     |                                            |   |   |   |
|                                                                                                                                                              | Cash                    paid during the period for:                    |                                                         |     |                                            |   |
|                                                                                                                                                              |                                                                   | Interest                                                     |     | $                                               | 5,289  |   | **$** | **4,863** |   |
|                                                                                                                                                              |                                                                   | Income                    taxes                              |     | $                                               | 49     |   | **$** | **168** |   |
| **Noncash                    investing and financing activities:**                                                                                                |                                                                   |                                                         |     |                                            |   |   |   |
|                                                                                                                                                              | Assets                    acquired through capital lease obligations   |                                                         | $        | —                                         |   | **$** | **800** |   |
| See                    accompanying notes                                                                                                                         |

----

**SALEM      COMMUNICATIONS CORPORATION**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS**

**N**
**OTE      1. BASIS OF PRESENTATION**

**NOTE      2. RECLASSIFICATIONS**

----

**NOTE      3. ACQUISITIONS AND OTHER SIGNIFICANT TRANSACTIONS**

|      |                                        | Amount                                  |
|-----------|---------------------------------------------|-----------------------------------------|
|      |                                        | *(Dollars                in thousands)* |
| **Asset** |                                        |
|      | Domain                names                 | $                268                    |
|      | Customer                lists and contracts | 32                                      |
|      |                                        | $                300                    |

**Other      Pending Transactions:**

**Discontinued      Operations:**

|   | **Three                Months Ended**                          |
|--------|----------------------------------------------------------------|
|   | **March                31, 2006**                              |
|   |                                                           |   |
|   | Operating                loss                                  |   |   | **$** | **(142)** |
|   | Gain                on sale or exchange of radio stations      |   |   |   | **667** |
|   | Gain                from discontinued operations, net of tax   |   |   |   | **525** |
|   | Provision                for income taxes                      |   |   |   | **196** |
|   | Income                from discontinued operations, net of tax |   |   | **$** | **329** |

----

**NOTE      4. STOCK INCENTIVE PLAN**

----

|                                                                                                             | Three                  Months Ended March 31, |
|------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|
|                                                                                                             | 2006                                          |   | **2007** |
|                                                                                                             |
| Stock                  option compensation expense included in corporate expenses                                | $                  1,073                      |   | **$                  507** |
| Restricted                  stock units compensation expense included in corporate expenses                      | 22                                            |   | **16** |
| Stock                  option compensation expense included in broadcast operating expenses                      | 207                                           |   | **207** |
| Stock                  option compensation expense included in non-broadcast operating                  expenses | 7                                             |   | **24** |
|  Total                  stock-based compensation expense                                                    | $                  1,309                      |   | **$                  754** |
| Tax                  benefit from stock-based compensation expense                                               | (527)                                         |   | **(345)** |
| Total                  stock-based compensation expense net of tax benefit                                       | $                  782                        |   | **$                  409** |

*Employee      stock option and restricted stock grants *

|                                    | Three                Months Ended March 31, |
|-----------------------------------------|---------------------------------------------|
|                                    | 2006                                        |   | **2007** |
| Expected                volatility      | 48.3%                                       |   | **67.0%** |
| Expected                dividends       | 0.0%                                        |   | **0.0%** |
| Expected                term (in years) | 5                -                8         |   | **5                - 8** |
| Risk-free                interest rate  | 4.73%                                       |   | **4.53%** |

----

**NOTE      4. STOCK INCENTIVE PLAN (Continued)**

|   | Options                                           |   | Shares        |   | Weighted                Average Exercise Price |   | Weighted                Average Remaining Contractual Term |   | Aggregate                Intrinsic Value |
|--------|---------------------------------------------------|--------|---------------|--------|------------------------------------------------|--------|------------------------------------------------------------|--------|------------------------------------------|
|   | **Outstanding                at January 1, 2007** |   | **2,146,564** |   | **$                22.30**                     |   |                                                       |   | **$                47,873**              |
|   | **Granted**                                       |   | **279,650**   |   | **11.80**                                      |   |                                                       |   | **3,300**                                |
|   | **Exercised**                                     |   | **(2,500)**   |   | **11.81**                                      |   |                                                       |   | **5**                                    |
|   | **Forfeited                or expired**           |   | **(28,950)**  |   | **18.39**                                      |   |                                                       |   | **532**                                  |
|   | **Outstanding                at March 31, 2007**  |   | **2,394,764** |   | **$                21.13**                     |   | **4.7                years**                               |   | **$                50,611**              |
|   | **Exercisable                at March 31, 2007**  |   | **1,389,425** |   | **$                24.70**                     |   | **3.0                years**                               |   | **$                34,313**              |

|   | Restricted                Stock Units        |   | Shares  |   | Weighted                Average Exercise                Price |
|--------|----------------------------------------------|--------|---------|--------|---------------------------------------------------------------|
|   | Non-Vested                at January 1, 2007 |   | 6,000   |   | $                11.15                                        |
|   | Granted                                      |   | — |   | —                                                       |
|   | Vested                                       |   | — |   | —                                                       |
|   | Forfeited                                    |   | — |   | —                                                       |
|   | Non-Vested                at March 31, 2007  |   | 6,000   |   | $                11.15                                        |

**NOTE      5. OTHER COMPREHENSIVE INCOME (LOSS)**

----

**NOTE      6. RECENT ACCOUNTING PRONOUNCEMENTS**

***Statement      of Financial Accounting Standards No. 159***

***Statement      of Financial Accounting Standards No. 157***

**NOTE      7. EQUITY TRANSACTIONS**

**NOTE      8. NOTES PAYABLE AND LONG-TERM DEBT**

|                                                          | December                31, 2006        |    | **March                31, 2007** |
|---------------------------------------------------------------|-----------------------------------------|---------|-----------------------------------|
|                                                          | *(Dollars                in thousands)* |
|                                                          |                                    |    |                              |   |   |
| Term                loans under credit facility               | $                                       | 238,125 |                              | **$** | **237,300** |
| Revolving                line of credit under credit facility |                                    | 19,100  |                              |   | **8,500** |
| Swingline                credit facility                      |                                    | 1,241   |                              |   | - |
| 73⁄4%                Senior Subordinated Notes due 2010    |                                    | 100,000 |                              |   | **100,000** |
| Fair                market value of interest swap agreement   |                                    | -       |                              |   | **104** |
| Capital                leases and other loans                 |                                    | 2,560   |                              |   | **3,348** |
|                                                          |                                    | 361,026 |                              |   | **349,252** |
| Less                current portion                           |                                    | 2,048   |                              |   | **2,431** |
|                                                          | $                                       | 358,978 |                              | **$** | **346,821** |

----

**Maturities      of Long-Term Debt**

| Twelve                  Months Ended March 31,               |   | Amount                                    |
|--------------------------------------------------------------|--------|-------------------------------------------|
|                                                         |   | *(Dollars                  in thousands)* |
| 2008                                                         | $      | 2,431                                     |
| 2009                                                         |   | 12,238                                    |
| 2010                                                         |   | 74,490                                    |
| 2011                                                         |   | 259,251                                   |
| 2012                                                         |   | 27                                        |
| Thereafter                                                   |   | 711                                       |
|                                                         | $      | 349,148                                   |
| Fair                  value of interest rate swap agreements |   | 104                                       |
|                                                         | $      | 349,252                                   |
|                                                         |   |                                      |

----

**NOTE      9. AMORTIZABLE INTANGIBLE ASSETS**

|                                               |   | **As                of March 31, 2007** |
|----------------------------------------------------|--------|-----------------------------------------|
|                                               |   |                                    |   |   | Accumulated |   |   |   |
|                                               |   | Cost                                    |   | Amortization |   | **Net** |
|                                               |   | *(Dollars                in thousands)* |
|                                               |   |                                    |
| Customer                lists and contracts        |   | $                                       | 10,437 |   | $ | (6,485) |   | $ | 3,952 |
| Domain                and brand names              |   |                                    | 4,775 |   |   | (1,765) |   |   | 3,010 |
| Favorable                and assigned leases       |   |                                    | 1,581 |   |   | (1,166) |   |   | 415 |
| Other                amortizable intangible assets |   |                                    | 2,742 |   |   | (2,241) |   |   | 501 |
|                                               |   | $                                       | 19,535 |   | $ | (11,657) |   | $ | 7,878 |

|                                               |   | **As                of December 31, 2006** |
|----------------------------------------------------|--------|--------------------------------------------|
|                                               |   |                                       |   |   | Accumulated |   |   |   |
|                                               |   | Cost                                       |   | Amortization |   | **Net** |
|                                               |   | *(Dollars                in thousands)*    |
|                                               |   |                                       |
| Customer                lists and contracts        |   | $                                          | 10,404 |   | $ | (6,030) |   | $ | 4,374 |
| Domain                and brand names              |   |                                       | 4,487 |   |   | (1,533) |   |   | 2,954 |
| Favorable                and assigned leases       |   |                                       | 1,581 |   |   | (1,144) |   |   | 437 |
| Other                amortizable intangible assets |   |                                       | 2,742 |   |   | (2,139) |   |   | 603 |
|                                               |   | $                                          | 19,214 |   | $ | (10,846) |   | $ | 8,368 |

| **Year                Ending December 31,** |   | **Estimated                future Amortization Expense** |
|---------------------------------------------|--------|----------------------------------------------------------|
|                                        |   | *(Dollars                in thousands)*                  |
| 2007                (April 1 - December 31) | $      | 2,177                                                    |
| 2008                                        |   | 2,535                                                    |
| 2009                                        |   | 1,283                                                    |
| 2010                                        |   | 832                                                      |
| 2011                                        |   | 370                                                      |
| Thereafter                                  |   | 681                                                      |
| Total                                       | $      | 7,878                                                    |

**NOTE      10. BASIC AND DILUTED EARNINGS PER SHARE**

----

**NOTE      11. DERIVATIVE INSTRUMENTS**

----

**Interest      Rate Caps**

----

**NOTE      12. INCOME TAXES**

**NOTE      13. COMMITMENTS AND CONTINGENCIES**

**NOTE      14. SEGMENT DATA **

----

**NOTE        14. SEGMENT DATA (CONTINUED)**

|                                                                                                                                                      |                              | **Three                Months Ended**   |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|-----------------------------------------|---------|
|                                                                                                                                                      |                              | **March                31,**            |    |
|                                                                                                                                                      |                              | 2006                                    |    |   | **2007** |   |
|                                                                                                                                                      |                              | *(Dollars                in thousands)* |    |
| Net                revenue                                                                                                                                |                              |
|                                                                                                                                                      | Radio                broadcasting | $                                       | 48,774  |   |   | **$** | **50,440** |   |
|                                                                                                                                                      | Non-broadcast                     |                                    | 3,252   |   |   |   | **5,654** |   |
| Consolidated                net revenue                                                                                                                   | $                                 | 52,026                                  |    |   | $ | **56,094** |   |
|                                                                                                                                                      |                              |                                    |    |   |   |   |   |   |
| Operating                expenses before depreciation, amortization and gain on disposal of                assets                                         |                              |                                    |
|                                                                                                                                                      | Radio                broadcasting | $                                       | 31,694  |   |   | **$** | **32,483** |   |
|                                                                                                                                                      | Non-broadcast                     |                                    | 3,432   |   |   |   | **5,271** |   |
|                                                                                                                                                      | Corporate                         |                                    | 6,440   |   |   |   | **5,814** |   |
| Consolidated                operating expenses before depreciation, amortization and gain on                disposal                of assets             | $                                 | 41,566                                  |    |   | **$** | **43,568** |   |
|                                                                                                                                                      |                              |                                    |    |   |   |   |   |   |
| Operating                income from continuing operations before depreciation, amortization                and                gain on disposal of assets |                              |                                    |    |   |   |   |   |
|                                                                                                                                                      | Radio                broadcasting | $                                       | 17,080  |   |   | **$** | **17,957** |   |
|                                                                                                                                                      | Non-broadcast                     |                                    | (180)   |   |   |   | **383** |   |
|                                                                                                                                                      | Corporate                         |                                    | (6,440) |   |   |   | **(5,814)** |   |
| Consolidated                operating income from continuing operations before depreciation,                amortization and gain on disposal of assets   | $                                 | 10,460                                  |    |   | **$** | **12,526** |   |
|                                                                                                                                                      |                              |                                    |    |   |   |   |   |   |
| Depreciation                                                                                                                                              |                              |                                    |    |   |   |   |   |
|                                                                                                                                                      | Radio                broadcasting | $                                       | 2,374   |   |   | **$** | **2,665** |   |
|                                                                                                                                                      | Non-broadcast                     |                                    | 87      |   |   |   | **139** |   |
|                                                                                                                                                      | Corporate                         |                                    | 284     |   |   |   | **287** |   |
| Consolidated                depreciation expense                                                                                                          | $                                 | 2,745                                   |    |   | **$** | **3,091** |   |
|                                                                                                                                                      |                              |                                    |    |   |   |   |   |   |
| Amortization                                                                                                                                              |                              |                                    |
|                                                                                                                                                      | Radio                broadcasting | $                                       | 228     |   |   | **$** | **67** |   |
|                                                                                                                                                      | Non-broadcast                     |                                    | 317     |   |   |   | **738** |   |
|                                                                                                                                                      | Corporate                         |                                    | 5       |   |   |   | **5** |   |
| Consolidated                amortization expense                                                                                                          | $                                 | 550                                     |    |   | **$** | **810** |   |
|                                                                                                                                                      |                              |                                    |    |   |   |   |   |   |
| Operating                income from continuing operations before gain on disposal of                assets                                               |                              |                                    |    |   |   |   |   |
|                                                                                                                                                      | Radio                broadcasting | $                                       | 14,478  |   |   | **$** | **15,225** |   |
|                                                                                                                                                      | Non-broadcast                     |                                    | (584)   |   |   |   | **(494)** |   |
|                                                                                                                                                      | Corporate                         |                                    | (6,729) |   |   |   | **(6,106)** |   |
| Consolidated                operating income from continuing operations before gain on disposal                of                assets                   | $                                 | 7,165                                   |    |   | **$** | **8,625** |   |
|                                                                                                                                                      |                              |                                    |    |   |   |   |   |   |
| Total                property, plant and equipment, net                                                                                                   |                              |                                    |    |   |   |   |   |
|                                                                                                                                                      | Radio                broadcasting | $                                       | 115,604 |   |   | **$** | **115,616** |   |
|                                                                                                                                                      | Non-broadcast                     |                                    | 2,830   |   |   |   | **3,516** |   |
|                                                                                                                                                      | Corporate                         |                                    | 10,279  |   |   |   | **10,488** |   |
| Consolidated                property, plant and equipment, net                                                                                            | $                                 | 128,713                                 |    |   | **$** | **129,620** |   |

----

**NOTE      14. SEGMENT DATA (CONTINUED)**

|                                                                                                                                                                                                                                                         |                                                                                                                                                                   | **Three                  months ended** |                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|-------------------------------------------|
|                                                                                                                                                                                                                                                         |                                                                                                                                                                   | **March                  31,**          |                                      |
|                                                                                                                                                                                                                                                         |                                                                                                                                                                   | 2006                                    |                                      |   |   | 2007 |   |
| Goodwill                                                                                                                                                                                                                                                     |                                                                                                                                                                   |                                    |                                      |   |   |   |   |
|                                                                                                                                                                                                                                                         | Radio                  broadcasting                                                                                                                                    | $                                       | 5,011                                     |   |   | **$** | **5,011** |   |
|                                                                                                                                                                                                                                                         | Non-broadcast                                                                                                                                                          |                                    | 15,587                                    |   |   |   | **15,587** |   |
|                                                                                                                                                                                                                                                         | Corporate                                                                                                                                                              |                                    | 8                                         |   |   |   | **8** |   |
| Consolidated                  goodwill                                                                                                                                                                                                                       | $                                                                                                                                                                      | 20,606                                  |                                      |   | **$** | **20,606** |   |
|  ***Reconciliation                  of operating income from continuing operations before depreciation,                  amortization and gain on disposal of assets to income from continuing                  operations before income taxes***  |                                                                                                                                                                   |
|                                                                                                                                                                                                                                                         |                                                                                                                                                                   |                                    | **Three                  Months Ended**   |
|                                                                                                                                                                                                                                                         |                                                                                                                                                                   |                                    | **March                  31,**            |
|                                                                                                                                                                                                                                                         |                                                                                                                                                                   |                                    | 2006                                      |   | **2007** |
|                                                                                                                                                                                                                                                         |                                                                                                                                                                   |                                    | *(Dollars                  in thousands)* |
|                                                                                                                                                                                                                                                         | Operating                  income from continuing operations before depreciation, amortization                  and                  gain (loss) on disposal of assets | $                                       | 10,460                                    |   | **$** | **12,526** |
|                                                                                                                                                                                                                                                         | Depreciation                  expense                                                                                                                                  |                                    | (2,745)                                   |   |   | **(3,091)** |
|                                                                                                                                                                                                                                                         | Amortization                  expense                                                                                                                                  |                                    | (550)                                     |   |   | **(810)** |
|                                                                                                                                                                                                                                                         | Interest                  income                                                                                                                                       |                                    | 46                                        |   |   | **60** |
|                                                                                                                                                                                                                                                         | Gain                  on disposal of assets                                                                                                                            |                                    | 3,529                                     |   |   | **3,269** |
|                                                                                                                                                                                                                                                         | Interest                  expense                                                                                                                                      |                                    | (6,588)                                   |   |   | **(6,454)** |
|                                                                                                                                                                                                                                                         | Other                  expense, net                                                                                                                                    |                                    | (172)                                     |   |   | **(35)** |
|                                                                                                                                                                                                                                                         | Income                  from continuing operations before income taxes                                                                                                 | $                                       | 3,980                                     |   | **$** | **5,465** |

----

**NOTE      15. CONSOLIDATING FINANCIAL INFORMATION **

*(Dollars      in thousands)*

|                                                    |                                     |                     | As                of March 31, 2007 |
|---------------------------------------------------------|------------------------------------------|--------------------------|-------------------------------------|
|                                                    |                                     |                     |                                |   |   |   |   |   | Issuer                and |
|                                                    |                                     |                     |                                |   |   |   |   |   | Guarantor |
|                                                    |                                     |                     | Guarantors                          |   | Subsidiaries |
|                                                    |                                     |                     |                                |   |   |   | Other |   |   |   |   |   | Salem |
|                                                    |                                     |                     | Parent                              |   | AcquisitionCo |   | Media |   | HoldCo |   | Adjustments |   | Consolidated |
| Current                assets:                          |
|                                                    | Cash                and cash equivalents |                     | $—                            |   | $                117 |   | $                161 |   | $                320 |   | $— |   | $                598 |
|                                                    | Accounts                receivable       |                     | —                             |   | 2,924 |   | 929 |   | 26,445 |   | (84) |   | 30,214 |
|                                                    | Other                receivables         |                     | —                             |   | 14 |   | 3 |   | 490 |   | — |   | 507 |
|                                                    | Prepaid                expenses          |                     | —                             |   | 108 |   | 280 |   | 2,018 |   | — |   | 2,406 |
|                                                    | Income                tax receivable     |                     | —                             |   | (9) |   | (8) |   | 47 |   | — |   | 30 |
|                                                    | Deferred                income taxes     |                     | —                             |   | 263 |   | 176 |   | 4,504 |   | — |   | 4,943 |
| Total                current assets                     |                                     | —                  |                                | 3,417 |   | 1,541 |   | 33,824 |   | (84) |   | 38,698 |
| Investment                in subsidiaries               |                                     | 211,063                  |                                | — |   | — |   | — |   | (211,063) |   | — |
| Property,                plant and equipment, net       |                                     | —                  |                                | 6,911 |   | 374 |   | 122,335 |   | — |   | 129,620 |
| Broadcast                licenses                       |                                     | —                  |                                | 94,473 |   | — |   | 379,098 |   | — |   | 473,571 |
| Goodwill                                                |                                     | —                  |                                | 10,256 |   | 2,554 |   | 7,796 |   | — |   | 20,606 |
| Other                indefinite-lived intangible assets |                                     | —                  |                                | — |   | 2,892 |   | — |   | — |   | 2,892 |
| Amortizable                intangible assets, net       |                                     | —                  |                                | 5,044 |   | 1,131 |   | 1,703 |   | — |   | 7,878 |
| Bond                issue costs                         |                                     | —                  |                                | — |   | — |   | 556 |   | — |   | 556 |
| Bank                loan fees                           |                                     | —                  |                                | — |   | — |   | 2,741 |   | — |   | 2,741 |
| Fair                value of interest rate swap         |                                     | —                  |                                | — |   | — |   | 913 |   | — |   | 913 |
| Intercompany                receivables                 |                                     | 104,920                  |                                | 9,918 |   | — |   | 176,980 |   | (291,818) |   | — |
| Other                assets                             |                                     | —                  |                                | 60 |   | 27 |   | 3,683 |   | — |   | 3,770 |
| Total                assets                             |                                     | $                315,983 |                                | $                130,079 |   | $                8,519 |   | $                729,629 |   | $                (502,965) |   | $                681,245 |

----

**NOTE      15. CONSOLIDATING FINANCIAL INFORMATION (CONTINUED)**

*(Dollars      in thousands)*

|                                                            |                                                     |                     | As                of March 31, 2007 |
|-----------------------------------------------------------------|----------------------------------------------------------|--------------------------|-------------------------------------|
|                                                            |                                                     |                     |                                |   |   |   |   |   | Issuer                and |
|                                                            |                                                     |                     |                                |   |   |   |   |   | Guarantor |
|                                                            |                                                     |                     | Guarantors                          |   | Subsidiaries |
|                                                            |                                                     |                     |                                |   |   |   | Other |   |   |   |   |   | Salem |
|                                                            |                                                     |                     | Parent                              |   | AcquisitionCo |   | Media |   | HoldCo |   | Adjustments |   | Consolidated |
| Current                liabilities:                             |                                                     |                     |
|                                                            | Accounts                payable                          |                     | $                —            |   | $37 |   | $                123 |   | $                2,344 |   | $— |   | $                2,504 |
|                                                            | Accrued                expenses                          |                     | —                             |   | 484 |   | 330 |   | 4,966 |   | (203) |   | 5,577 |
|                                                            | Accrued                compensation and related expenses |                     | —                             |   | 656 |   | 161 |   | 7,118 |   | — |   | 7,935 |
|                                                            | Accrued                interest                          |                     | —                             |   | — |   | — |   | 5,866 |   | — |   | 5,866 |
|                                                            | Deferred                revenue                          |                     | —                             |   | — |   | 4,057 |   | 553 |   | — |   | 4,610 |
|                                                            | Current                maturities of long-term debt      |                     | —                             |   | — |   | — |   | 2,431 |   | — |   | 2,431 |
| Total                current liabilities                        |                                                     | —                  |                                | 1,177 |   | 4,671 |   | 23,278 |   | (203) |   | 28,923 |
| Intercompany                payables                            |                                                     | 74,946                   |                                | 101,222 |   | 13,734 |   | 101,797 |   | (291,699) |   | — |
| Long-term                debt                                   |                                                     | —                  |                                | 2,523 |   | — |   | 344,298 |   | — |   | 346,821 |
| Deferred                income taxes                            |                                                     | 1,919                    |                                | 14,756 |   | (9,346) |   | 50,785 |   | — |   | 58,114 |
| Deferred                revenue                                 |                                                     | —                  |                                | 515 |   | (1,373) |   | 7,981 |   | — |   | 7,123 |
| Other                liabilities                                |                                                     | —                  |                                | — |   | — |   | 1,146 |   | — |   | 1,146 |
| Total                stockholders’ equity                 |                                                     | 239,118                  |                                | 9,886 |   | 833 |   | 200,344 |   | (211,063) |   | 239,118 |
| Total                liabilities and stockholders’ equity |                                                     | $                315,983 |                                | $                130,079 |   | $                8,519 |   | $729,629 |   | $                (502,965) |   | $                681,245 |

----

**NOTE      15. CONSOLIDATING FINANCIAL INFORMATION (CONTINUED)**

*(Dollars      in thousands)*

|                                                |                                                                |                     | Three                Months Ended March 31, 2007 |
|-----------------------------------------------------|---------------------------------------------------------------------|--------------------------|--------------------------------------------------|
|                                                |                                                                |                     |                                             |   |   |   |   |   | Issuer                and |
|                                                |                                                                |                     |                                             |   |   |   |   |   | Guarantor |
|                                                |                                                                |                     | Guarantors                                       |   | Subsidiaries |
|                                                |                                                                |                     |                                             |   |   |   | Other |   |   |   |   |   | Salem |
|                                                |                                                                |                     | Parent                                           |   | AcquisitionCo |   | Media |   | HoldCo |   | Adjustments |   | Consolidated |
| Net                broadcasting revenue             |                                                                | $                — |                                             | $                2,778 |   | $                — |   | $                48,290 |   | $                (628) |   | $                50,440 |
| Non-broadcast                revenue                |                                                                | —                  |                                             | 3,076 |   | 1,604 |   | 1,134 |   | (160) |   | 5,654 |
| Total                revenue                        |                                                                | —                  |                                             | 5,854 |   | 1,604 |   | 49,424 |   | (788) |   | 56,094 |
| Operating                expenses:                  |                                                                |                     |                                             |   |   |   |   |   |   |   |   |   |
|                                                | Broadcasting                operating expenses                      |                     | —                                          |   | 1,889 |   | — |   | 30,527 |   | 67 |   | 32,483 |
|                                                | Non-broadcast                operating expenses                     |                     | —                                          |   | 3,013 |   | 1,957 |   | 916 |   | (615) |   | 5,271 |
|                                                | Corporate                expenses                                   |                     | —                                          |   | 336 |   | — |   | 5,718 |   | (240) |   | 5,814 |
|                                                | Amortization                                                        |                     | —                                          |   | 425 |   | 101 |   | 284 |   | — |   | 810 |
|                                                | Depreciation                                                        |                     | —                                          |   | 246 |   | 40 |   | 2,805 |   | — |   | 3,091 |
|                                                | Gain                on disposal of assets                           |                     | —                                          |   | — |   | — |   | (3,269) |   | — |   | (3,269) |
| Total                operating expenses             |                                                                | —                  |                                             | 5,909 |   | 2,098 |   | 36,981 |   | (788) |   | 44,200 |
| Operating                income (loss)              |                                                                | —                  |                                             | (55) |   | (494) |   | 12,443 |   | — |   | 11,894 |
| Other                income (expense):              |
|                                                | Equity                in earnings of consolidated subsidiaries, net |                     | 5,111                                            |   | — |   | — |   | — |   | (5,111) |   | — |
|                                                | Interest                income                                      |                     | 1,916                                            |   | — |   | — |   | 3,070 |   | (4,926) |   | 60 |
|                                                | Interest                expense                                     |                     | (2,143)                                          |   | (2,337) |   | (326) |   | (6,574) |   | 4,926 |   | (6,454) |
|                                                | Other                income (expense)                               |                     | —                                          |   | — |   | — |   | (35) |   | — |   | (35) |
| Income                (loss) before income taxes    |                                                                | 4,884                    |                                             | (2,392) |   | (820) |   | 8,904 |   | (5,111) |   | 5,465 |
| Provision                (benefit) for income taxes |                                                                | 1,919                    |                                             | (580) |   | (395) |   | 1,556 |   | — |   | 2,500 |
| Net                income (loss)                    |                                                                | $-                2,965  |                                             | $                (1,812) |   | $                (425) |   | $                7,348 |   | $                (5,111) |   | $                2,965 |
| Other                comprehensive income (loss)    |                                                                | (288)                    |                                             | — |   | — |   | (288) |   | 288 |   | (288) |
| Comprehensive                income (loss)          |                                                                | $                2,677   |                                             | $                (1,812) |   | $                (425) |   | $                7,060 |   | $                (4,823) |   | $                2,677 |

----

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS.**
** **

**GENERAL**

*Any      information found on the our website is not a part of, or incorporated by      reference into, this or any other report of the Company filed with, or furnished      to, the SEC.*

----

**OVERVIEW**

| ·   | the                sale of block program time, both to national and local program producers, |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | the                sale of advertising time on our radio stations, both to national                and local                advertisers, and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                sale of advertising time on our national radio                network. |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | audience                share, |
|--------------------|--------------------------------|

| ·   | how                well our stations perform for our                clients, |
|--------------------|------------------------------------------------------------------------------|

| ·   | the                size of the market, |
|--------------------|----------------------------------------|

| ·   | the                general economic conditions in each market,                and |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | supply                and demand on both a local and national                level. |
|--------------------|-------------------------------------------------------------------------------------|

----

**SAME      STATION DEFINITION**

**RESULTS      OF OPERATIONS**

----

|                                                                 |                                            |                    | **Three                Months Ended** |                        |        |
|----------------------------------------------------------------------|-------------------------------------------------|-------------------------|---------------------------------------|-----------------------------|-------------|
|                                                                 |                                            |                    | **March                31,**          |                        |        |
|                                                                 |                                            |                    | 2006                                  |                        | **2007**    |   | **%                Change** |
| Net                broadcasting revenue                              |                                            | $                48,774 |                                  | **$                50,440** |        | 3.4% |
| Non-broadcast                revenue                                 |                                            | 3,252                   |                                  | **5,654**                   |        | 73.9% |
| Total                revenue                                         |                                            | 52,026                  |                                  | **56,094**                  |        | 7.8% |
| Operating                expenses:                                   |                                            |                    |                                  |                        |        |   |
|                                                                 | Broadcasting                operating expenses  |                    | 31,694                                |                        | **32,483**  |   | 2.5% |
|                                                                 | Non-broadcast                operating expenses |                    | 3,432                                 |                        | **5,271**   |   | 53.6% |
|                                                                 | Corporate                expenses               |                    | 6,440                                 |                        | **5,814**   |   | (9.7)% |
|                                                                 | Depreciation                                    |                    | 2,745                                 |                        | **3,091**   |   | 12.6% |
|                                                                 | Amortization                                    |                    | 550                                   |                        | **810**     |   | 47.3% |
|                                                                 | Gain                on disposal of assets       |                    | (3,529)                               |                        | **(3,269)** |   | (7.4)% |
| Total                operating expenses                              |                                            | 41,332                  |                                  | **44,200**                  |        | 6.9% |
| Operating                income from continuing operations           |                                            | 10,694                  |                                  | **11,894**                  |        | 11.2% |
| Other                income (expense):                               |                                            |                    |                                  |                        |        |   |
|                                                                 | Interest                income                  |                    | 46                                    |                        | **60**      |   | 30.4% |
|                                                                 | Interest                expense                 |                    | (6,588)                               |                        | **(6,454)** |   | (2.0)% |
|                                                                 | Other                expense, net               |                    | (172)                                 |                        | **(35)**    |   | (79.7)% |
| Income                from continuing operations before income taxes |                                            | 3,980                   |                                  | **5,465**                   |        | 37.3                % |
| Provision                for income taxes                            |                                            | 1,594                   |                                  | **2,500**                   |        | 56.8% |
| Income                from continuing operations                     |                                            | 2,386                   |                                  | **2,965**                   |        | 24.3% |
| Income                from discontinued operations, net of tax       |                                            | 329                     |                                  | —                     |        | (100.0)% |
| Net                income                                            |                                            | $                2,715  |                                  | **$                2,965**  |        | 9.2% |

----

|                                                                 |                                            |    | **Three                Months Ended** |
|----------------------------------------------------------------------|-------------------------------------------------|---------|---------------------------------------|
|                                                                 |                                            |    | **March                31,**          |
|                                                                 |                                            |    | 2006                                  |   | **2007** |
| Net                broadcasting revenue                              |                                            | 94      | %                                     |   | **90** | **%** |
| Non-broadcast                revenue                                 |                                            | 6       | %                                     |   | **10** | **%** |
| Total                revenue                                         |                                            | 100     | %                                     |   | **100** | **%** |
| Operating                expenses:                                   |                                            |    |                                  |   |   |   |
|                                                                 | Broadcasting                operating expenses  |    | 61                                    | % |   | **58** | **%** |
|                                                                 | Non-broadcast                operating expenses |    | 7                                     | % |   | **10** | **%** |
|                                                                 | Corporate                expenses               |    | 12                                    | % |   | **10** | **%** |
|                                                                 | Depreciation                and amortization    |    | 5                                     | % |   | **6** | **%** |
|                                                                 | Amortization                                    |    | 1                                     |   |   | **1** | **%** |
|                                                                 | Gain                on disposal of assets       |    | (7)                                   | % |   | **(6)** | **%** |
|                                                                 | Total                operating expenses         |    | 79                                    | % |   | **79** | **%** |
| Operating                income from continuing operations           |                                            | 21      | %                                     |   | **21** | **%** |
| Other                income (expense):                               |                                            |    |                                  |   |   |   |
|                                                                 | Interest                income                  |    | —                               | % |   | — | **%** |
|                                                                 | Interest                expense                 |    | (13)                                  | % |   | **(11)** | **%** |
|                                                                 | Other                expense, net               |    | —                               | % |   | — | **%** |
| Income                from continuing operations before income taxes |                                            | 8       | %                                     |   | **10** | **%** |
| Provision                for income taxes                            |                                            | 3       | %                                     |   | **5** | **%** |
| Income                from continuing operations                     |                                            | 5       | %                                     |   | **5** | **%** |
| Income                from discontinued operations, net of tax       |                                            | — | %                                     |   | — | **%** |
| Net                income                                            |                                            | 5       | %                                     |   | **5** | **%** |
|                                                                      |                                            |    |                                  |   |   |   |

----

***Three      months ended March 31, 2007 compared to the three months ended March 31,      2006***

*NET      BROADCASTING REVENUE.*

*NON-BROADCAST      REVENUE*

*BROADCASTING      OPERATING EXPENSES.*

*NON-BROADCAST      OPERATING EXPENSES. *

*CORPORATE      EXPENSES.*

*DEPRECIATION.      *

*AMORTIZATION.      *

*GAIN      ON DISPOSAL OF ASSETS. *

----

*OTHER      INCOME (EXPENSE). *

*PROVISION      FOR INCOME TAXES.*

*      INCOME      FROM DISCONTINUED OPERATIONS, NET OF TAX.*

*NET      INCOME*

----

**NON-GAAP      FINANCIAL MEASURES**

***Three      months ended March 31, 2007 compared to the three months ended March 31,      2006***

*STATION      OPERATING INCOME. *

|                                                 |   | **Three                Months Ended March 31,** |
|------------------------------------------------------|--------|-------------------------------------------------|
|                                                 |   | (Dollars                in thousands)           |
|                                                 |   | 2006                                            |   | **2007** |
|                                                 |   |                                            |   |   |
| Station                operating income              |   | $                17,080                         |   | **$                17,957** |
| Plus                non-broadcast revenue            |   | 3,252                                           |   | **5,654** |
| Less                non-broadcast operating expenses |   | (3,432)                                         |   | **(5,271)** |
| Less                depreciation and amortization    |   | (3,295)                                         |   | **(3,901)** |
| Less                gain on disposal of assets       |   | 3,529                                           |   | **3,269** |
| Less                corporate expenses               |   | (6,440)                                         |   | **(5,814)** |
| Operating                income                      |   | $                10,694                         |   | **$                11,894** |

----

**CRITICAL      ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES**

***Accounting      for acquisitions and upgrades of radio station and network      assets***

***Allowance      for doubtful accounts***

***Intangible      assets***

----

***Valuation      allowance (deferred taxes)***

***Long-term      debt and debt covenant compliance***

***Stock-Based      Compensation***

----

**LIQUIDITY      AND CAPITAL RESOURCES**

**Cash      Flows **

*Cash      Flows from Operating Activities*

*Cash      Flows from Investing Activities*

----

*Cash      Flows from Financing Activities*

**Credit      Facilities**

----

----

*Swingline      Credit Facility.*

*73⁄4%      Notes.*

----

**Summary of long-term        obligations**

|                                                          | **As                of December 31, 2006** | As                of March 31, 2007 |
|---------------------------------------------------------------|--------------------------------------------|-------------------------------------|
|                                                          | *(Dollars                in thousands)*    |
|                                                          |                                       |                                |   |
| Term                loan B                                    | $                73,125                    |                                | **$                73,125** |
| Term                loan C                                    | 165,000                                    |                                | **164,175** |
| Revolving                line of credit under credit facility | 19,100                                     |                                | **8,500** |
| Swingline                credit facility                      | 1,241                                      |                                | — |
| 73⁄4%                senior subordinated notes due 2010    | 100,000                                    |                                | **100,000** |
| Fair                market value of interest rate swap        | —                                    |                                | **104** |
| Capital                leases and other loans                 | 2,560                                      |                                | **3,348** |
|                                                          | $                361,026                   |                                | **$                349,252** |
| Less                current portion                           | 2,048                                      |                                | **2,431** |
|                                                          | $                358,978                   |                                | **$                346,821** |

| ·   | Outstanding                borrowings of $237.3 million on term loans with interest payments                due at                LIBOR plus 1.25% to 1.75% or at prime rate plus 0.25% to 0.75%, depending                on our total leverage ratio, and a commitment fee of 0.375% on the                unused                portion. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Outstanding                borrowings of $8.5 million under a revolving line of credit with                interest                payments due at the banks prime rate. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $100                million senior subordinated notes with semi-annual interest payments                at 7                3⁄4%. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

**OFF-BALANCE      SHEET ARRANGEMENTS**

----

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

**DERIVATIVE      INSTRUMENTS**

----

----

**Interest      Rate Caps**

**MARKET      RISK**

**ITEM      4. CONTROLS AND PROCEDURES.**

----

**PART      II - OTHER INFORMATION**
** **

**ITEM      1. LEGAL PROCEEDINGS.**
** **

**ITEM      1A. RISK FACTORS**

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS.**
** **

**ITEM      3. DEFAULT UPON SENIOR SECURITIES.**
** **

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.**
** **

**ITEM      5. OTHER INFORMATION.**
** **

----

**ITEM      6. EXHIBITS.**

**INDEX      TO EXHIBITS**

|                                          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **Incorporated                by Reference**                                                 |
|-----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
|   **Exhibit** **Number**  |   |     **Exhibit                Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |     **Form**                                                             |   |   **File                No.**  |   | **Date                of** **First                Filing**  |   |   **Exhibit** **Number**  |   |   **Filed** **Herewith**  |
| 3.01                                     |   | Amended                and Restated Certificate of Incorporation of Salem Communications                Corporation, a Delaware corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   **8-K**                                                                          |   |   **333-41733-29**  |   |   **04/14/99**  |   |   **3.1**  |   |   |
| 3.02                                     |   | Bylaws                of Salem Communications Corporation, a Delaware Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   **8-K**                                                                          |   |   **333-41733-29**  |   |   **04/14/99**  |   |   **3.2**  |   |   |
| 3.03                                     |   | Certificate                of Incorporation of Salem Communications Holding Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   **8-K**                                                                          |   |   **000-26497**  |   |   **09/08/00**  |   |   **2.01**  |   |   |
| 3.04                                     |   | Bylaws                of Salem Communications Holding Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   **8-K**                                                                          |   |   **000-26497**  |   |   **09/08/00**  |   |   **2.02**  |   |   |
| 3.05                                     |   | Certificate                of Incorporation of Salem Communications Acquisition Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   **8-K**                                                                          |   |   **000-26497**  |   |   **09/08/00**  |   |   **2.03**  |   |   |
| 3.06                                     |   | Bylaws                of Salem Communications Acquisition Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   **8-K**                                                                          |   |   **000-26497**  |   |   **09/08/00**  |   |   **2.04**  |   |   |
| 3.07                                     |   | Certificate                of Incorporation of SCA License Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   **8-K**                                                                          |   |   **000-26497**  |   |   **09/08/00**  |   |   **2.05**  |   |   |
| 3.08                                     |   | Bylaws                of SCA License Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | **8-K**                                                                                      |   | **000-26497**  |   | **09/08/00**  |   | **2.06**  |   |   |
| 4.01                                     |   | Specimen                of Class A common stock certificate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   **S-1/A**                                                                        |   |   **333-76649**  |   | **Declared                Effective** **06/30/99**  |   |   **4.09**  |   |   |
| 4.02                                     |   | Fifth                Amended and Restated Credit Agreement, dated as of September 25,                2003, by                and among Salem Communications Corporation, Salem Communications                Holding                Corporation, General Electric Capital Corporation, as Syndication                Agent,                Suntrust Bank, as Syndication Agent, Fleet National Bank, as Documentation                Agent, ING (U.S.) Capital, LLC, as Documentation Agent, The Bank                of New                York, as Administrative Agent, and the Lenders party thereto.                                                       |   |             **10-Q**             |   |             **000-26497**  |   |             **11/06/03**  |   |             **4.09**  |   |   |
| 4.03                                     |   | Second                Amended and Restated Parent Security Agreement dated as of June 15,                2001,                by and among Salem Communications Corporation, a Delaware corporation,                Salem Communications Holding Corporation, a Delaware corporation,                and The                Bank of New York, as Administrative Agent.                                                                                                                                                                                                                                                                                         |   |         **10-Q**                                     |   |         **000-26497**  |   |         **08/14/01**  |   |         **4.24.02**  |   |   |
| 4.04                                     |   | Amendment                #1, dated as of May 19, 2004, to the Fifth Amended and Restated Credit                Agreement, dated as of September 25, 2003, by and among Salem                Communications Corporation, Salem Communications Holding Corporation,                General Electric Capital Corporation, as Syndication Agent, Suntrust                Bank,                as Syndication Agent, Fleet National Bank, as Documentation Agent,                ING                (U.S.) Capital, LLC, as Documentation Agent, The Bank of New York,                as                Administrative Agent, and the Lenders party thereto.        |   |           **10-Q**                         |   |           **000-26497**  |   |           **08/06/04**  |   |           **4.11**  |   |   |
| 4.05                                     |   | Amendment                #2, dated as of July 7, 2005, to the Fifth Amended and Restated Credit                Agreement, dated as of September 25, 2003, by and among Salem                Communications Corporation, Salem Communications Holding                Corporation, General                Electric Capital Corporation, as Syndication Agent, Suntrust Bank,                as                Syndication Agent, Fleet National Bank, as Documentation Agent, ING                (U.S.)                Capital, LLC, as Documentation Agent, The Bank of New York, as                Administrative Agent, and the Lenders party thereto.   |   |             **8-K**              |   |             **000-26497**  |   |             **07/13/05**  |   |             **4.12**  |   |   |
| 4.06                                     |   | Indenture                between Salem Communications Holding Corporation, a Delaware corporation,                certain named guarantors and The Bank of New York, as Trustee, dated                as of                June 25, 2001, relating to the 9% Series A and Series B Senior                Subordinated Notes due 2011.                                                                                                                                                                                                                                                                                                                          |   |       **10-Q**                                       |   |       **000-26497**  |   |       **08/14/01**  |   |       **4.10.03**  |   |   |
| 4.07                                     |   | Form                of 9% Senior Subordinated Notes (filed as part of exhibit                4.06).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   **10-Q**                                                                         |   |   **000-26497**  |   |   **08/14/01**  |   |   |   |   |
| 4.08                                     |   | Form                of Note Guarantee (filed as part of exhibit 4.06).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   **10-Q**                                                                         |   |   **000-26497**  |   |   **08/14/01**  |   |   |   |   |
| 4.09                                     |   | Registration                Rights Agreement dated as of June 25, 2001, by and among Salem                Communications Holding Corporation, the guarantors and initial purchasers                named therein.                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |     **10-Q**                                                             |   |     **000-26497**  |   |     **08/14/01**  |   |     **4.28**  |   |   |
| 4.10                                     |   | Indenture,                dated as of December 23, 2002, relating to the 73⁄4% Senior Subordinated                Notes due 2010 by and among Salem Holding, the Company and The Bank                of New                York, as trustee, with form of Note incorporated                                                                                                                                                                                                                                                                                                                                                                                 |   |       **8-K**                                                  |   |       **000-26497**  |   |       **12/23/02**  |   |       **4.1**  |   |   |
| 4.11                                     |   | Form                of 73⁄4% Senior Subordinated Notes (filed as part of exhibit                4.10).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   **8-K**                                                                          |   |   **000-26497**  |   |   **12/23/02**  |   |   |   |   |
| 4.12                                     |   | Form                of Note Guarantee (filed as part of exhibit 4.10).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   **8-K**                                                                          |   |   **000-26497**  |   |   **12/23/02**  |   |   |   |   |
| 4.13                                     |   | Supplemental                Indenture No. 1 to the 73⁄4% Senior Subordinated Notes, dated as of December                23, 2002, between Salem Communications Corporation and its guarantors,                and                Bank of New York.                                                                                                                                                                                                                                                                                                                                                                                                          |   |     **10-K**                                                             |   |     **000-26497**  |   |     **03/31/03**  |   |     **4.22**  |   |   |
| 4.14                                     |   | Supplemental                Indenture No. 1 to the 9% Senior Subordinated Notes, dated as of                December                16, 2002, between Salem Communications Corporation and its guarantors,                and                Bank of New York.                                                                                                                                                                                                                                                                                                                                                                                                 |   |     **10-K**                                                             |   |     **000-26497**  |   |     **03/31/03**  |   |     **4.23**  |   |   |
| 4.15                                     |   | Supplemental                Indenture No. 2 to the 73⁄4% Senior Subordinated Notes, dated as of June 12,                2003, between Salem Communications Corporation and its guarantors,                and                Bank of New York.                                                                                                                                                                                                                                                                                                                                                                                                              |   |     **10-Q**                                                             |   |     **000-26497**  |   |     **08/06/03**  |   |     **4.24**  |   |   |
| 4.16                                     |   | Supplemental                Indenture No. 2 to the 9% Senior Subordinated Notes, dated as of                June 12,                2003, between Salem Communications Corporation and its guarantors,                and                Bank of New York.                                                                                                                                                                                                                                                                                                                                                                                                     |   |     **10-Q**                                                             |   |     **000-26497**  |   |     **08/06/03**  |   |     **4.25**  |   |   |
| 4.17                                     |   | Consent                No. 2, dated as of July 23, 2003, under the Fourth Amended and Restated                Credit Agreement between Salem Communications Corporation and its                guarantors, and The Bank of New York.                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     **10-Q**                                                             |   |     **000-26497**  |   |     **08/06/03**  |   |     **4.26**  |   |   |
| 4.18                                     |   | Amendment                #3, dated as of June 9, 2006, to the Fifth Amended and Restated Credit                Agreement, dated as of September 25, 2003, by and among Salem                Communications Corporation, Salem Communications Holding                Corporation, General                Electric Capital Corporation, as Syndication Agent, Suntrust Bank,                as                Syndication Agent, Fleet National Bank, as Documentation Agent, ING                (U.S.)                Capital, LLC, as Documentation Agent, The Bank of New York, as                Administrative Agent, and the Lenders party thereto.   |   |               **8-K**  |   |               **000-26497**  |   |               **06/15/06**  |   |               **4.13**  |   |   |
| 10.01.01                                 |   | Employment                Agreement, dated July 1, 2004, between Salem Communications Holding                Corporation and Edward G. Atsinger III.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     **10-Q**                                                             |   |     **000-26497**  |   |     **08/06/04**  |   |     **10.01.01**  |   |   |
| 10.02.01                                 |   | Employment                Agreement, dated July 1, 2004, between Salem Communications Holding                Corporation and Stuart W. Epperson.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   **10-Q**                                                                         |   |   **000-26497**  |   |   **08/06/04**  |   |   **10.02.01**  |   |   |
| 10.04.01                                 |   | Employment                Agreement, effective as of September 1, 2005, between Salem Communications                Holding Corporation and David A.R. Evans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |     **8-K**                                                              |   |     **000-26497**  |   |     **09/27/05**  |   |     **99.1**  |   |   |
| 10.04.02                                 |   | Employment                Agreement, effective as of September 1, 2005, between Salem Communications                Holding Corporation and Joe D. Davis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |     **8-K/A**                                                            |   |     **000-26497**  |   |     **05/25/05**  |   |     **99.1**  |   |   |
| 10.05.04                                 |   | Antenna/tower/studio                lease between Common Ground Broadcasting, Inc. (KKMS-AM/Eagan, Minnesota)                and Messrs. Atsinger and Epperson expiring in 2016.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.04**  |   |   |
| 10.05.05                                 |   | Antenna/tower                lease between Common Ground Broadcasting, Inc. (WHK-AM/ Cleveland,                Ohio)                and Messrs. Atsinger and Epperson expiring 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.05**  |   |   |
| 10.05.06                                 |   | Antenna/tower                lease (KFAX-FM/Hayward, California) and Salem Broadcasting Company,                a                partnership consisting of Messrs. Atsinger and Epperson, expiring                in 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.06**  |   |   |
| 10.05.08                                 |   | Antenna/tower                lease between Inspiration Media, Inc. (KGNW-AM/Seattle, Washington)                and                Messrs. Atsinger and Epperson expiring in 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.08**  |   |   |
| 10.05.09                                 |   | Antenna/tower                lease between Inspiration Media, Inc. (KLFE-AM/Seattle, Washington)                and                The Atsinger Family Trust and Stuart W. Epperson Revocable Living                Trust                expiring in 2014.                                                                                                                                                                                                                                                                                                                                                                                                     |   |       **S-4**                                                  |   |       **333-41733-29**  |   |       **01/29/98**  |   |       **10.05.09**  |   |   |
| 10.05.11.02                              |   | Antenna/tower/studio                lease between Pennsylvania Media Associates, Inc.                (WNTP-AM/WFIL-AM/Philadelphia, Pennsylvania) and The Atsinger Family                Trust                and Stuart W. Epperson Revocable Living Trust expiring 2014.                                                                                                                                                                                                                                                                                                                                                                                     |   |       **S-4**                                                  |   |       **333-41733-29**  |   |       **01/29/98**  |   |       **10.05.11.02**  |   |   |
| 10.05.12                                 |   | Antenna/tower                lease between New Inspiration Broadcasting Co., Inc.: as successor                in                interest to Radio 1210, Inc. (KPRZ-AM/Olivenhain, California) and                The                Atsinger Family Trust expiring in 2028.                                                                                                                                                                                                                                                                                                                                                                                   |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.12**  |   |   |
| 10.05.13                                 |   | Antenna/tower                lease between Salem Media of Texas, Inc. and Atsinger Family                Trust/Epperson Family Limited Partnership (KSLR-AM/San Antonio, Texas).                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     **10-K**                                                             |   |     **000-26497**  |   |     **03/30/00**  |   |     **10.05.13**  |   |   |
| 10.05.15                                 |   | Antenna/tower                lease between Salem Media of Colorado, Inc. (KNUS-AM/Denver-Boulder,                Colorado) and Messrs. Atsinger and Epperson expiring 2016.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.15**  |   |   |
| 10.05.16                                 |   | Antenna/tower                lease between Salem Media of Colorado, Inc. and Atsinger Family                Trust/Epperson Family Limited Partnership (KRKS-AM/KBJD-AM/Denver,                Colorado) expiring 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |     **10-K**                                                             |   |     **000-26497**  |   |     **03/30/00**  |   |     **10.05.16**  |   |   |
| 10.05.17.02                              |   | Antenna/tower                lease between Salem Media of Oregon, Inc. (KPDQ-AM/FM/Raleigh Hills,                Oregon), and Messrs. Atsinger and Epperson expiring 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.17.02**  |   |   |
| 10.05.18                                 |   | Antenna/tower                lease between Salem Media of Pennsylvania, Inc.                (WORD-FM/WPIT-AM/Pittsburgh, Pennsylvania) and The Atsinger Family                Trust                and Stuart W. Epperson Revocable Living Trust expiring 2013.                                                                                                                                                                                                                                                                                                                                                                                                |   |       **S-4**                                                  |   |       **333-41733-29**  |   |       **01/29/98**  |   |       **10.05.18**  |   |   |
| 10.05.19                                 |   | Antenna/tower                lease between Salem Media of Texas, Inc. (KSLR-AM/San Antonio, Texas)                and                Epperson-Atsinger 1983 Family Trust expiring 2017.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     **S-4**                                                              |   |   **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.19**  |   |   |
| 10.05.20                                 |   | Antenna/tower                lease between South Texas Broadcasting, Inc. (KNTH-AM/Houston-Galveston,                Texas) and Atsinger Family Trust and Stuart W. Epperson Revocable                Living                Trust expiring 2015.                                                                                                                                                                                                                                                                                                                                                                                                               |   |     **S-4**                                                              |   |     **333-41733-29**  |   |     **01/29/98**  |   |     **10.05.20**  |   |   |
| 10.05.21                                 |   | Antenna/tower                lease between New Inspiration Broadcasting Co., Inc. successor in                interest                to Vista Broadcasting, Inc. (KFIA-AM/Sacramento, California) and                The                Atsinger Family Trust and Stuart W. Epperson Revocable Living Trust                expiring 2016.                                                                                                                                                                                                                                                                                                                     |   |       **S-4**                                                  |   |       **333-41733-29**  |   |       **10/29/98**  |   |       **10.05.21**  |   |   |
| 10.05.22                                 |   | Antenna/tower                lease between South Texas Broadcasting, Inc. (KKHT-FM/Houston-Galveston,                Texas) and Sonsinger Broadcasting Company of Houston, LP expiring                2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |     **10-K                405**                                          |   |     **000-26497**  |   |     **03/31/99**  |   |     **10.05.22**  |   |   |
| 10.05.23                                 |   | Antenna/tower                lease between Inspiration Media of Texas, Inc. (KTEK-AM/Alvin, Texas)                and                the Atsinger Family Trust and The Stuart W. Epperson Revocable Living                Trust expiring 2018.                                                                                                                                                                                                                                                                                                                                                                                                                 |   |     **10-K                405**                                          |   |     **000-26497**  |   |     **03/31/99**  |   |     **10.05.23**  |   |   |
| 10.05.24                                 |   | Studio                building lease between Salem Radio Properties, Inc. and Thomas H.                Moffit                Jr.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   **10-K**                                                                         |   |   **000-26497**  |   |   **03/31/06**  |   |   **10.05.24**  |   |   |
| 10.05.25                                 |   | Antenna/tower                lease between Pennsylvania Media Associates Inc. (WTLN-AM/ Orlando,                Florida) and Atsinger Family Trust and Stuart W. Epperson, revocable                living trust expiring 2045.                                                                                                                                                                                                                                                                                                                                                                                                                                |   |     **10-K**                                                             |   |     **000-26497**  |   |     **3/16/07**  |   |     **10.05.25**  |   |   |
| 10.06.02                                 |   | Asset                Purchase Agreement, dated August 18, 2006, by and between Caron                Broadcasting, Inc. and Chesapeake-Portsmouth Broadcasting Corporation                (WJGR-AM, Jacksonville, Florida, and WZNZ-AM, Jacksonville,                Florida)                                                                                                                                                                                                                                                                                                                                                                                   |   |   **10Q**                                                                          |   |   **000-26497**  |   |   **11/09/06**  |   |   **10.06.02**  |   |   |
| 10.06.03                                 |   | Asset                Purchase Agreement, dated September 14, 2006, by and between Caron                Broadcasting, Inc. and Chesapeake-Portsmouth Broadcasting Corporation                (WZAZ-AM, Jacksonville, Florida)                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   **10Q**                                                                          |   |   **000-26497**  |   |   **11/09/06**  |   |   **10.06.03**  |   |   |
| 10.06.04                                 |   | Local                Programming and Marketing Agreement, dated September 14, 2006, by                and                between Caron Broadcasting, Inc. and Chesapeake-Portsmouth Broadcasting                Corporation (WJGR-AM, Jacksonville, Florida,  and                WZNZ-AM, Jacksonville, Florida)                                                                                                                                                                                                                                                                                                                                          |   |   **10Q**                                                                          |   |   **000-26497**  |   |   **11/09/06**  |   |   **10.06.04**  |   |   |
| 10.06.05                                 |   | Local                Programming and Marketing Agreement, dated September 14, 2006, by                and                between Caron Broadcasting, Inc. and Chesapeake-Portsmouth Broadcasting                Corporation (WZAZ-AM, Jacksonville, Florida)                                                                                                                                                                                                                                                                                                                                                                                                   |   |   **10Q**                                                                          |   |   **000-26497**  |   |   **11/09/06**  |   |   **10.06.05**  |   |   |
| 10.08.01                                 |   | Amended                and Restated 1999 Stock Incentive Plan (incorporated by reference                to                previously filed Appendix B).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   **DEF                14A**                                                       |   |   **000-26497**  |   |   **04/29/03**  |   |   **Appendix                B**  |   |   |
| 10.08.02                                 |   | Form                of stock option grant for Amended and Restated 1999 Stock Incentive                Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   **10-K**                                                                         |   |   **000-26497**  |   |   **03/16/05**  |   |   **10.08.02**  |   |   |
| 10.08.03                                 |   | Form                of restricted stock option grant for Amended and Restated 1999 Stock                Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   **10-Q**                                                                         |   |   **000-26497**  |   |   **11/09/05**  |   |   **10.01**  |   |   |
| 10.08.04                                 |   | Amended                and Restated 1999 Stock Incentive Plan as amended and restated through                May                18, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   **DEF                14A**                                                       |   |   **000-26497**  |   |   **04/18/05**  |   |   **Proposal                No. 2**  |   |   |
| 10.09                                    |   | Management                Services Agreement by and among Salem and Salem Communications Holding                Corporation, dated August 25, 2000 (incorporated by reference to                previously filed exhibit 10.11). (7)                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   **10-Q**                                                                         |   |   **000-26497**  |   |   **05/15/01**  |   |   **10.11**  |   |   |
| 31.1                                     |   | Certification                of Edward G. Atsinger III Pursuant to Rules 13a-14(a) and 15d-14(a)                under                the Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **-**                                                                                        |   | **-**  |   | **-**  |   | **-**  |   | **X**  |
| 31.2                                     |   | Certification                of David A.R. Evans Pursuant to Rules 13a-14(a) and 15d-14(a) under                the                Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | **-**                                                                                        |   | **-**  |   | **-**  |   | **-**  |   | **X**  |
| 32.1                                     |   | Certification                of Edward G. Atsinger III Pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **-**                                                                                        |   | **-**  |   | **-**  |   | **-**  |   | **X**  |
| 32.2                                     |   | Certification                of David A.R. Evans Pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | **-**                                                                                        |   | **-**  |   | **-**  |   | **-**  |   | **X**  |

----

**SIGNATURES**

|                        |   | SALEM                COMMUNICATIONS CORPORATION                                                           |
|-----------------------------|--------|-----------------------------------------------------------------------------------------------------------|
| May                10, 2007 |   |                                                                                                      |
|                        |   | By:                /s/ EDWARD G. ATSINGER III                                                             |
|                        |   | Edward                G. Atsinger III                                                                     |
|                        |   | President                and Chief Executive Officer                                                      |
|                        |   | (Principal                Executive Officer)                                                              |
|                        |   |                                                                                                      |
|                        |   |                                                                                                      |
| May                10, 2007 |   |                                                                                                      |
|                        |   | By:                /s/ DAVID A.R. EVANS                                                                   |
|                        |   | David                A.R. Evans                                                                           |
|                        |   | Executive                Vice President - Business Development and Chief Financial                Officer |   |
|                        |   | (Principal                Financial Officer)                                                              |

----

**EXHIBIT      INDEX**

| **Exhibit****Number** |   | **Description                of Exhibits**                                                                                                             |
|-----------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                   |
| 31.1                  |   | Certification                of Edward G. Atsinger III Pursuant to Rules 13a-14(a) and 15d-14(a)                under                the Exchange Act. |
|                  |   |                                                                                                                                                   |
| 31.2                  |   | Certification                of David A.R. Evans Pursuant to Rules 13a-14(a) and 15d-14(a) under                the                Exchange Act.       |
|                  |   |                                                                                                                                                   |
| 32.1                  |   | Certification                of Edward G. Atsinger III Pursuant to 18 U.S.C. Section                1350.                                              |
|                  |   |                                                                                                                                                   |
| 32.2                  |   | Certification                of David A.R. Evans Pursuant to 18 U.S.C. Section                1350.                                                    |

----

**EXHIBIT      31.1**

| 1.     | I                have reviewed this quarterly report on Form 10-Q of Salem Communications                Corporation;                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 2.     | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report;      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 3.     | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this                report;                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 4.     | The                registrant’s other certifying officers and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal                control over financial reporting (as defined in Exchange Act Rules                13a-15(f) and 15(d)-15(f)) for the registrant and have: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                      | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared;                   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                      | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles;                                         |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                      | Evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation; and                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                      | Disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially affect, the registrant’s internal control over financial                reporting; and |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 5.     | The                registrant’s other certifying officers and I have disclosed, based on our                most recent evaluation of internal control over financial reporting,                to                the registrant’s auditors and the audit committee of registrant’s board of                directors (or persons performing the equivalent                functions):                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                      | all                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant’s ability to record,                process, summarize and report financial information; and                                                                                                                                                                              |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                      | any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant’s internal control                over financial reporting.                                                                                                                                                                                                                                                                                            |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     | Date:                May 10, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     | /s/                EDWARD G. ATSINGER III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |

|   |   | Edward                G. Atsinger III                |   |
|--------|--------|------------------------------------------------------|--------|
|   |   | President                and Chief Executive Officer |   |

----

**EXHIBIT      31.2**

| 1.     | I                have reviewed this quarterly report on Form 10-Q of Salem Communications                Corporation;                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 2.     | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report;      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 3.     | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this                report;                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 4.     | The                registrant’s other certifying officers and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal                control over financial reporting (as defined in Exchange Act Rules                13a-15(f) and 15(d)-15(f)) for the registrant and have: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                      | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared;                   |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                      | Designed                such internal control over financial reporting, or caused such internal                control over financial reporting to be designed under our supervision,                to                provide reasonable assurance regarding the reliability of financial                reporting and the preparation of financial statements for external                purposes in accordance with generally accepted accounting                principles;                                         |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                      | Evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such evaluation; and                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                      | Disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially affect, the registrant’s internal control over financial                reporting; and |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
| 5.     | The                registrant’s other certifying officers and I have disclosed, based on our                most recent evaluation of internal control over financial reporting,                to                the registrant’s auditors and the audit committee of registrant’s board of                directors (or persons performing the equivalent                functions):                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                      | all                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant’s ability to record,                process, summarize and report financial information; and                                                                                                                                                                              |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                      | any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant’s internal control                over financial reporting.                                                                                                                                                                                                                                                                                            |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     | Date:                May 10, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                     | /s/                DAVID A.R. EVANS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |

|   |   | David                A.R. Evans                                                                           |   |
|--------|--------|-----------------------------------------------------------------------------------------------------------|--------|
|   |   | Executive                Vice President - Business Development and Chief Financial                Officer |   |

----

**EXHIBIT          32.2**

**CERTIFICATION          PURSUANT TO**

**18          U.S.C. SECTION 1350,**

**AS          ADOPTED PURSUANT TO**

**SECTION          906 OF THE SARBANES-OXLEY ACT OF 2002**

| ·   | the                Quarterly Report of the Company on Form 10-Q for the period ended                March                31, 2007 (the “Report”) fully complies with the requirements of Section                13(a) or Section 15(d) of the Securities Exchange Act of 1934;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                information contained in the Report fairly presents, in all material                respects, the financial condition and results of operations of the                Company. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Dated:                May 10, 2007 |                                                 |   |
|--------|------------------------------------|------------------------------------------------------|--------|
|   |                               | By:                /s/ EDWARD G. ATSINGER III        |   |
|   |                               |                                                 |   |
|   |                               | Edward                G. Atsinger III                |   |
|   |                               | President                and Chief Executive Officer |   |

----

**EXHIBIT      32.2**

**CERTIFICATION      PURSUANT TO**

**18      U.S.C. SECTION 1350,**

**AS      ADOPTED PURSUANT TO**

**SECTION      906 OF THE SARBANES-OXLEY ACT OF 2002**

| ·   | the                Quarterly Report of the Company on Form 10-Q for the period ended                March                31, 2007 (the “Report”) fully complies with the requirements of Section                13(a) or Section 15(d) of the Securities Exchange Act of 1934;                and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                information contained in the Report fairly presents, in all material                respects, the financial condition and results of operations of the                Company. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Dated:                May 10, 2007 |                                                                                                      |   |
|--------|------------------------------------|-----------------------------------------------------------------------------------------------------------|--------|
|   |                               | By:                /s/ DAVID A.R. EVANS                                                                   |   |
|   |                               |                                                                                                      |   |
|   |                               | David                A.R. Evans                                                                           |   |
|   |                               | Executive                Vice President - Business Development and Chief Financial                Officer |   |
|   |                               |                                                                                                      |   |