Great Hill Partners

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7.28.2000
Great Hill Partners Leads $25 Million Investment In Dame Broadcasting

BOSTON (July 28, 2000) - Great Hill Partners announced today that it is the lead investor in a $25 million commitment to Dame Broadcasting, LLC, which the company will use to further develop its broadcasting group of small and mid-market radio stations. The investment by Great Hill Partners marks a continuing focus in the radio broadcasting sector and innovative media opportunities. Dame Broadcasting, which is led by broadcast industry veteran J. Albert Dame, will provide both management and operational expertise to the stations, along with improved programming.

The company owns and operates nine stations in the Pennsylvania Region and is actively pursuing additional acquisitions in the mid-Atlantic region. It will target small and medium markets with Arbitron Metro rankings of 125 or higher, building momentum and economy of scale by acquiring multiple, adjacent properties in the region. By forming these clusters and realizing greater economies of scale, the company will be able to enhance station revenues, lower costs and substantially increase broadcast cash flow.

"The radio industry has experienced a tremendous wave of consolidation over the last few years, and yet, these smaller markets have been overlooked - creating a fantastic opportunity for seasoned industry executives, like Al Dame, who understand their value," said Stephen Gormley, managing partner of Great Hill Partners.Great Hill Partners has successfully invested in various broadcasting properties since the early 1980s. Gormley and Matt Murphy, senior associate at Great Hill Partners, will serve on the Board of Directors for Dame Broadcasting.

"Great Hill Partners knows this industry, and what it takes to run a station and build a profitable network," said Dame, who sold his previous venture, Dame Media, Inc., a 21-station small-market Northeastern radio group, for $85 million in 1998. "Our combined network of contacts gives this new company substantial competitive advantage." Dame Broadcasting owns and operates WIKZ-FM, WCHA-AM and WCHA-FM in Hagerstown-Chambersburg, Md.; WGLU-FM and WQKK-FM in Johnstown, Penn.; WQWK-FM, WNCL-FM and WRSC-AM/WBLF-AM in State College, Penn.

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About Great Hill Partners:
Great Hill Partners is a leading Boston-based investment firm that provides equity financing and strategic guidance to telecommunications, e-business services and Internet infrastructure services companies. Recent investments include ManagedOps.com, American Broadband, Edge Connections, High-Tech Institute, SmartMail, DURO Communications and Horizon Telecom International. The firm currently manages over $700 million in private equity raised from institutional investors including leading commercial and investment banks, state and corporate pension funds, university endowments and private trusts.