Citadel Takes Majority Stake in ION

WEST PALM BEACH/CHICAGO/NEW YORK, May 7: ION Media Networks
has reached a deal for Citadel Investment Group to take a majority stake in the
broadcast group, in a deal worth $173 million, with NBC Universal maintaining a
minority interest.

ION owns and operates 60 television stations, reaching 83
percent of U.S. television households via its station group and cable and
satellite platforms. ION is expected to become privately held following the
transaction.

As part of the agreement, NBC Universal will transfer to
Citadel the call right on controlling shares it acquired in November 2005 from
ION’s founder, Bud Paxson. Citadel will exercise the call right, commencing a
cash tender offer for ION’s outstanding Class A common stock at $1.46 a share.
Citadel will also invest $100 million to fund ION’s future growth and digital
investment plans.

NBC Universal will continue to hold a minority interest,
with an option to acquire voting control of ION.