ION Media Networks Announces Discussions with Secured Lenders Regarding Recapitalization

Discussions Target Conversion of Debt to Equity, Additional Funding, and Operational Continuity

ION Media Networks, Inc., (“ION”) owner and operator of the nation’s largest broadcast television station group, today announced that it is in discussions with its secured lenders with regard to a comprehensive recapitalization of the Company’s balance sheet. ION has hired financial advisor Moelis & Company and the law firm of Kirkland & Ellis LLP to advise the Company in connection with such a recapitalization.

The Company is currently in discussions with a growing group of lenders and key stakeholders regarding a significant debt-for-equity exchange, which would substantially de-lever the Company’s balance sheet and include a new cash investment to advance the Company’s long-term growth and expansion plan.

“Our Board, management and advisors are focused on the benefits of reducing the Company’s legacy debt structure and funding its long-term growth potential,” said Brandon Burgess, Chairman and CEO of ION Media Networks. “We are encouraged by the receptivity and support from key stakeholders to the idea of restoring our balance sheet to maximize the potential of our unique nationwide TV network and spectrum assets.”

The stakeholders engaged in current discussions with the Company have expressed support for the Company’s de-leveraging initiatives and for management’s vision and operational direction, including continuation of the Company’s programming, digital and mobile strategies.

With operations to continue uninterrupted, the Company’s initiative to restructure its balance sheet and strengthen its financial position is a positive development for its vendors and partners who have already been part of the Company’s growth and re-launch efforts over the past 12 to 18 months. The Company achieved record ratings growth in the first quarter of 2009, with double-digit growth in primetime viewership among households as well as in the key adults 25-54 demo. ION’s continued ratings growth reflects the success of its strategy to build viewership through a strong mix of expanded programming and marketing initiatives.

About ION Media Networks

ION Media Networks, Inc. owns and operates the nation’s largest broadcast television station group and ION Television, which reaches over 94 million U.S. television households via its nationwide broadcast television, cable and satellite distribution systems, and features popular TV series and movies from the award-winning libraries of RHI Entertainment, CBS Television, NBC Universal, Sony Pictures Television, Twentieth Television and Warner Bros., among others. Using its digital multicasting capability, the Company has launched several digital TV brands, including qubo, a channel for children focusing on literacy and values, and ION Life, a channel dedicated to active living and personal growth. It also has launched Open Mobile Ventures Corporation (OMVION), a business unit focused on the research and development of portable, mobile and out-of-home transmission technology using over-the-air digital television spectrum. For more information, visit www.ionmedia.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provisions created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of the Company. Forward-looking statements can be identified by the use of terms such as “expects”, “should”, “may”, “believes”, “anticipates”, “will”, and other future tense and forward-looking terminology. There can be no assurance as to the actual results of the undertakings described herein. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts

Media:
Abernathy MacGregor
Lex Suvanto / Adam Miller
212-371-5999
lex {at} abmac(.)com / alm {at} abmac(.)com