**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

----

**FORM      10-Q/A**

| [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           |

** Explanatory        Note**

----

**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** |
| Net                  broadcasting revenue                              | $                  48,774                                                                                                                                                                                                                                                                   |                                    | **$                  50,440** |
| Non-broadcast                  revenue                                 | 3,252                                                                                                                                                                                                                                                                                       |                                    | **5,654** |
| Total                  revenue                                         | 52,026                                                                                                                                                                                                                                                                                      |                                    | **56,094** |
| Operating                  expenses:                                   |                                                                                                                                                                                                                                                                                        |                                    |   |
|                                                                   | Broadcasting                  operating expenses, exclusive of depreciation and amortization                  shown below                  (including $277 and $310 for the quarter ended March 31, 2006 and                  2007,                  respectively, paid to related parties) | 31,694                                  |   | **32,483** |
|                                                                   | Non-broadcast                  operating expenses, exclusive of depreciation and amortization                  shown                  below                                                                                                                                                 | 3,432                                   |   | **5,271** |
|                                                                   | Corporate                  expenses, exclusive of depreciation and amortization shown below                  (including $99 and $70 for the quarter ended March 31, 2006 and                  2007,                  respectively, paid to related parties)                                 | 6,440                                   |   | **5,814** |
|                                                                   | Depreciation                  (including $87 and $139 for the quarter ended March 31, 2006 and                  2007,                  respectively, for non-broadcast businesses)                                                                                                          | 2,745                                   |   | **3,091** |
|                                                                   | Amortization                  (including $317 and $738 for the quarter ended March 31, 2006 and                  2007,                  respectively, for non-broadcast businesses)                                                                                                         | 550                                     |   | **810** |
|                                                                   | Gain                  on disposal of assets                                                                                                                                                                                                                                                 | (3,529)                                 |   | **(3,269)** |
| Total                  operating expenses                              | 41,332                                                                                                                                                                                                                                                                                      |                                    | **44,200** |
| Operating                  income from continuing operations           | 10,694                                                                                                                                                                                                                                                                                      |                                    | **11,894** |
| Other                  income (expense):                               |
|                                                                   | Interest                  income                                                                                                                                                                                                                                                            | 46                                      |   | **60** |
|                                                                   | Interest                  expense                                                                                                                                                                                                                                                           | (6,588)                                 |   | **(6,454)** |
|                                                                   | Other                  expense, net                                                                                                                                                                                                                                                         | (172)                                   |   | **(35)** |
| Income                  from continuing operations before income taxes | 3,980                                                                                                                                                                                                                                                                                       |                                    | **5,465** |
| Provision                  for income taxes                            | 1,594                                                                                                                                                                                                                                                                                       |                                    | **2,500** |
| Income                  from continuing operations                     | 2,386                                                                                                                                                                                                                                                                                       |                                    | **2,965** |
| Income                  from discontinued operations, net of tax       | 329                                                                                                                                                                                                                                                                                         |                                    | — |
| Net                  income                                            | $                  2,715                                                                                                                                                                                                                                                                    |                                    | **$                  2,965** |
| Other                  comprehensive income (loss), net of tax         | 1,036                                                                                                                                                                                                                                                                                       |                                    | **(288)** |
| Comprehensive                  income                                  | $                  3,751                                                                                                                                                                                                                                                                    |                                    | **$                  2,677** |
|                                                                   |                                                                                                                                                                                                                                                                                        |                                    |   |
| Basic                  earnings per share data:                        |                                                                                                                                                                                                                                                                                        |                                    |   |
| Earnings                  per share from continuing operations         | $                  0.10                                                                                                                                                                                                                                                                     |                                    | **$                  0.12** |
| Income                  per share from discontinued operations         | 0.01                                                                                                                                                                                                                                                                                        |                                    | **—** |
| Basic                  earnings per share                              | 0.11                                                                                                                                                                                                                                                                                        |                                    | **0.12** |
| Diluted                  earnings per share data:                      |                                                                                                                                                                                                                                                                                        |                                    |   |
| Earnings                  per share from continuing operations         | $                  0.10                                                                                                                                                                                                                                                                     |                                    | **$                  0.12** |
| Income                  per share from discontinued operations         | 0.01                                                                                                                                                                                                                                                                                        |                                    | **—** |
| Diluted                  earnings per share                            | 0.11                                                                                                                                                                                                                                                                                        |                                    | **0.12** |
| Basic                  weighted average shares outstanding             | 24,686,517                                                                                                                                                                                                                                                                                  |                                    | **23,848,603** |
| Diluted                  weighted average shares outstanding           | 24,696,334                                                                                                                                                                                                                                                                                  |                                    | **23,853,068** |
| See                  accompanying notes                                |

----

**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**

**NOTE        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 |

----

****SIGNATURES****

|                               |   | SALEM                      COMMUNICATIONS CORPORATION                  |   |
|------------------------------------|--------|------------------------------------------------------------------------|--------|
| July                      24, 2007 |   |                                                                   |   |
|                               |   | By:                      /s/ EDWARD G. ATSINGER III                    |   |
|                               |   | Edward                      G. Atsinger III                            |   |
|                               |   | Chief                      Executive Officer                           |   |
|                               |   | (Principal                      Executive Officer)                     |   |
|                               |   |                                                                   |   |
|                               |   |                                                                   |   |
| July                      24, 2007 |   |                                                                   |   |
|                               |   | By:                      /s/ EVAN D. MASYR                             |   |
|                               |   | Evan                      D. Masyr                                     |   |
|                               |   | Senior                      Vice President 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 Evan D. Masyr  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 Evan D. Masyr 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:                    July 24, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | By:                    /s/ EDWARD G. ATSINGER III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  Edward                  G. Atsinger III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  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:                    July 24, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | By:                    /s/ EVAN D. MASYR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  Evan                  D. Masyr                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  Senior                  Vice President and Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |

----

**EXHIBIT          32.1**

**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: July                    24,  2007 |                                              |   |
|--------|----------------------------------------------------|---------------------------------------------------|--------|
|   |                                               | By:                    /s/ EDWARD G. ATSINGER III |   |
|   |                                               | Edward                    G. Atsinger III         |   |
|   |                                               | 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:                    July 24, 2007 |                                                                 |   |
|--------|-----------------------------------------|----------------------------------------------------------------------|--------|
|   |                                    | By:                    /s/ EVAN D. MASYR                             |   |
|   |                                    | Evan                    D. Masyr                                     |   |
|   |                                    | Senior                    Vice President and Chief Financial Officer |   |
|   |                                    |                                                                 |   |