<SUBMISSION>
<ACCESSION-NUMBER>0001021408-02-010559
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20020630
<FILING-DATE>20020813
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BEASLEY BROADCAST GROUP INC
<CIK>0001099160
<ASSIGNED-SIC>4832
<IRS-NUMBER>650960915
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-29253
<FILM-NUMBER>02728223
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3033 RIVIERA DRIVE
<STREET2>SUITE 200
<CITY>NAPLES
<STATE>FL
<ZIP>34103
<PHONE>9412635000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3033 RIVIERA DRIVE
<STREET2>SUITE 200
<CITY>NAPLES
<STATE>FL
<ZIP>34103
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.htm
<DESCRIPTION>PERIOD: JUNE 30, 2002
<TEXT>
<HTML><HEAD>
<TITLE>Prepared by R.R. Donnelley Financial -- Period: June 30, 2002</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <HR noshade size=4 color="#000000"> <center> <br> <font size=4><b> UNITED STATES </b><br> <b> SECURITIES AND EXCHANGE COMMISSION </b></font><br> </center> <p align=center><font size=2><b> WASHINGTON, D.C. 20549
</b></font></p> <HR noshade width="120" color="#000000"> <p align=center><font size=4><b> FORM 10-Q </b></font></p> <HR noshade width="120" color="#000000"> <br>
<table width="100%" cellspacing=0 cellpadding=0>
<tr>
<td width="30">&nbsp;</td>
<td width="30" valign=top><font size=2><b> <font face=Wingdings>x</font> </b></font></td>
<td><font size=2><b> QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </b></font></td></tr></table> <p align=center><font size=2><b> For the Quarterly Period Ended June 30, 2002 </b></font></p> <p
align=center><font size=2><b> OR </b></font></p> <br>
<table width="100%" cellspacing=0 cellpadding=0>
<tr>
<td width="30">&nbsp;</td>
<td width="30" valign=top><font size=2><b> <font face=Wingdings>o</font> </b></font></td>
<td><font size=2><b> TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </b></font></td></tr></table> <p align=center><font size=2><b> Commission File No. 0-29253 </b></font></p> <HR noshade width="120"
color="#000000"> <center> <font size=5><b> <u> BEASLEY BROADCAST GROUP, INC. </u> </b></font><br> </center> <p align=center><font size=2>(Exact Name of Registrant as Specified in Its Charter)</font></p> <HR noshade width="120" color="#000000">
<table width="100%" cellspacing=0 cellpadding=0>
<tr>
<td width="50">&nbsp;</td>
<td align=center valign=top width="380"><font size=2><b> <u> Delaware </u> </b><br> (State of Incorporation)<br> <br></font></td>
<td align=center width="80">&nbsp;</td>
<td align=center valign=top width="380"><font size=2><b> <u> 65-0960915 </u> </b><br> (I.R.S. Employer<br> Identification Number)</font></td>
<td width="50">&nbsp;</td></tr></table><br> <p align=center><font size=2><b> 3033 Riviera Drive, Suite 200 </b><br><b> <u> Naples, Florida 34103 </u> </b></font></p> <p align=center><font size=2>(Address of Principal Executive Offices and Zip
Code)</font></p> <p align=center><font size=2><b> <u> (239) 263-5000 </u> </b><br>(Registrant&#146;s Telephone Number, Including Area Code)</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes <font face=Wingdings>x</font> No <font face=Wingdings>o</font></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate the number of shares outstanding of each of the issuer&#146;s classes of common stock, as of the latest practicable date.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A Common Stock, $.001 par value, 7,440,698 Shares Outstanding as of August 12,
2002</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B Common Stock, $.001 par value, 16,832,743 Shares
Outstanding as of August 12, 2002</font></p> <br><HR noshade size=4 color="#000000"> <CENTER><font size=2>&nbsp;</font></CENTER>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <BR> <p align=left><font size=2><b>
<a name="toc"></a> </b></font></p> <p align=center><font size=2><b> INDEX </b></font></p>
<table width="100%" cellspacing=0 cellpadding=0 align=center>
<tr>
<td width="60">&nbsp;</td>
<td width="5">&nbsp;</td>
<td width="450">&nbsp;</td>
<td width="40" align=center><font size=1><u><b> <u> Page No. </u> </b></u></font></td></tr>
<tr>
<td width="60" valign=top align=left><font size=2><b> PART I </b></font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2><b> FINANCIAL INFORMATION </b></font></td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 1.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_71a"><u> Financial Statements (Unaudited) </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>1</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_29"><u> Consolidated Balance Sheets of Beasley Broadcast Group, Inc. <br>&nbsp;&nbsp;&nbsp;as of December 31, 2001 and June 30, 2002 </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>1</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_30"><u> Consolidated Statements of Operations of Beasley Broadcast <br>&nbsp;&nbsp;&nbsp;Group, Inc. for the Three and Six Months Ended June 30, 2001 and June 30, 2002 </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>2</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_77"><u> Consolidated Statements of Cash Flows of Beasley Broadcast <br>&nbsp;&nbsp;&nbsp;Group, Inc. for the Six Months Ended June 30, 2001 and June 30, 2002 </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>3</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_1"><u> Notes to Consolidated Financial Statements </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>4</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 2.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_76"><u> Management&#146;s Discussion and Analysis of Financial Condition <br>&nbsp;&nbsp;&nbsp;and Results of Operations </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>8</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 3.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_81"><u> Quantitative and Qualitative Disclosures About Market Risk </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>15</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2><b> PART II </b></font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2><b> OTHER INFORMATION </b></font></td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 1.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_71"><u> Legal Proceedings </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>16</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 2.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_5"><u> Changes in Securities and Use of Proceeds </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>16</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 3.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_41"><u> Defaults Upon Senior Securities </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>16</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 4.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_86"><u> Submission of Matters to a Vote of Security Holders </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>16</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 5.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_79"><u> Other Information </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>16</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="60" valign=top align=left><font size=2>Item 6.</font></td>
<td width="5"></td>
<td width="550" valign=top><font size=2>
<a href="#hy_bm_37"><u> Exhibits and Reports on Form 8-K </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>17</font></td></tr>
<tr>
<td width="60">&nbsp;</td>
<td width="5"></td>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr> </table>
<table width="100%" cellspacing=0 cellpadding=0 align=center>
<tr>
<td width="510"><font size=2></font></td>
<td width="40">&nbsp;</td></tr>
<tr>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td width="610"><font size=2>
<a href="#hy_bm_96"><u> SIGNATURES </u></a></font></td>
<td width="40" valign=bottom align=center><font size=2>18</font></td></tr>
<tr>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr>
<tr>
<td>&nbsp;</td>
<td width="40">&nbsp;</td></tr> </table> <CENTER><font size=2>&nbsp;</font></CENTER>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2><b> PART I FINANCIAL INFORMATION </b></font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60"><font size=2><b>
<a name="hy_bm_71a"></a>ITEM 1. </b></font></td>
<td valign=top><font size=2><b> FINANCIAL STATEMENTS </b></font></td></tr></table><br> <p align=center><font size=2>
<a name="hy_bm_29"></a> <b>BEASLEY BROADCAST GROUP, INC. </b><br><b> CONSOLIDATED BALANCE SHEETS </b></font></p>
<table width="100%" cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="91" colspan="2"><font size=1><b> December 31, </b><br><b> 2001 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="91" colspan="2"><font size=1><b> June 30, </b><br><b> 2002 </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="202" colspan="5"><font size=1><b> (Unaudited) </b></font></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Center><font size=2><br>&nbsp;&nbsp;&nbsp;<b> ASSETS </b></font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Current assets:</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Cash and cash equivalents</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>4,998,526</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>3,317,571</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance for doubtful accounts of $621,853 in</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;2001 and $404,374 in 2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>20,086,094</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>19,074,405 </font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Trade sales receivable</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>1,135,628</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>931,823</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Other receivables</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>3,079,552</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>877,358</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Prepaid expenses and other</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>1,483,766</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>3,303,040</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Deferred tax assets</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>1,525,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>3,370,150</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>32,308,566</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>30,874,347</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Notes receivable</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>4,698,492</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>7,980,060</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Property and equipment, net</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>20,259,684</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>18,053,564</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>FCC broadcasting licenses</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>240,280,537</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>201,828,987</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Goodwill</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>12,095,384</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>11,973,571</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Other intangibles, net</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>5,758,635</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>5,534,925</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Investments</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>650,002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>650,002</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Other assets</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>2,542,376</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>2,740,139</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>318,593,676</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>279,635,595</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Center><font size=2><br>&nbsp;&nbsp;&nbsp;<b> TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY </b></font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Current liabilities:</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Current installments of long-term debt</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>15,009,045</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>16,320,269</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Accounts payable</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>3,189,388</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>1,769,824</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Accrued expenses</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>5,296,211</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>5,312,867</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Trade sales payable</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>1,206,720</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>1,487,889</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Derivative financial instruments</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>1,714,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>610,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>26,415,364</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>25,500,849</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Long-term debt, less current installments</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>210,489,420</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>183,148,761</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Derivative financial instruments</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>2,916,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>2,149,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Deferred tax liabilities</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>21,572,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>19,312,246</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>261,392,784</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>230,110,856</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Preferred stock, $.001 par value, 10,000,000 shares authorized, none issued</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Class A common stock, $.001 par value, 150,000,000 shares <br> &nbsp;&nbsp;&nbsp;authorized, 7,252,068 and 7,440,698 issued and outstanding<br> &nbsp;&nbsp;&nbsp;in 2001 and 2002, respectively</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>7,252</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>7,441</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Class B common stock, $.001 par value, 75,000,000 shares <br> &nbsp;&nbsp;&nbsp;authorized, 17,021,373 and 16,832,743 issued and outstanding<br> &nbsp;&nbsp;&nbsp;in 2001 and 2002, respectively</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>17,021</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>16,832</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Additional paid-in capital</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>106,633,932</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>106,633,932</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Accumulated deficit</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>(49,457,313</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>(57,133,466</font></td>
<td valign=bottom width="17"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders&#146; equity</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>57,200,892</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="87"><font size=2>49,524,739</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders&#146; equity</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>318,593,676</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="87"><font size=2>279,635,595</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <br> <p align=center><font size=2><i> See accompanying notes to consolidated financial statements </i></font></p> <center> <font size=2>1</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <div align="left"><BR> </div> <p align=center><font size=2>
<a name="hy_bm_30"></a> <b>BEASLEY BROADCAST GROUP, INC. </b><br><b> CONSOLIDATED STATEMENTS OF OPERATIONS </b></font></p>
<table width="100%" cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="171" colspan="5"><font size=1><b> Three months ended June 30, </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="171" colspan="5"><font size=1><b> Six months ended June 30, </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="75" colspan="2"><font size=1><b> 2001 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="75" colspan="2"><font size=1><b> 2002 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="75" colspan="2"><font size=1><b> 2001 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="75" colspan="2"><font size=1><b> 2002 </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="171" colspan="5"><font size=1><b> (Unaudited) </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="171" colspan="5"><font size=1><b> (Unaudited) </b></font></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Net revenues</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>30,214,234</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>28,350,986</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>56,056,955</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>53,245,339</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Costs and expenses:</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Program and production</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>7,968,239</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>5,782,054</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>14,183,242</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>11,751,078</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Sales and advertising</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>9,022,020</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>8,909,820</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>17,846,578</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>16,891,949</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Station general and administrative</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>4,755,322</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>3,918,394</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>9,078,269</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>7,938,020</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Corporate general and administrative</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>1,369,541</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>1,323,398</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>2,530,065</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>2,552,573</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Depreciation and amortization</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>7,169,790</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>962,708</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>13,208,535</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>1,984,494</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>30,284,912</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>20,896,374</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>56,846,689</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>41,118,114</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(70,678</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>7,454,612</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(789,734</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>12,127,225</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Other income (expense):</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Interest expense</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(4,094,176</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(3,838,927</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(7,797,577</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(7,863,699</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Loss on investments</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(349,610</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(1,585,417</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Other non-operating expenses</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(3,158</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(171,992</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(3,158</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(504,850</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Gain (loss) on change in fair value of derivative <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;financial instruments</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(1,788,000</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>720,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(2,825,000</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>1,871,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Interest income</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>118,162</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>184,094</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>237,512</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>285,155</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Other non-operating income</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(57,171</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>400</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>2,579,323</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>3,600</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(6,244,631</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>4,348,187</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(10,184,051</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>5,918,431</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Income tax expense (benefit)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(2,144,000</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>1,747,248</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(3,460,000</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>1,472,193</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before cumulative effect of <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting change</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(4,100,631</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>2,600,939</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(6,724,051</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>4,446,238</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Cumulative effect of accounting change (net of <br>&nbsp;&nbsp;&nbsp;income tax effect)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>41,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(12,122,391</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(4,100,631</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>2,600,939</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(6,683,051</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(7,676,153</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Basic and diluted net income (loss) per share:</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Income (loss) before cumulative effect of <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting change</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(0.17</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>0.11</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(0.28</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>0.18</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(0.50</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Net income (loss)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(0.17</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>0.11</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(0.28</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>(0.32</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Basic common shares outstanding</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Diluted common shares outstanding</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,310,014</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,316,087</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,312,500</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,308,731</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <br> <p align=center><font size=2><i> See accompanying notes to consolidated financial statements </i></font></p> <center> <font size=2>2</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2>
<a name="hy_bm_77"></a> <b>BEASLEY BROADCAST GROUP, INC. </b><br><b> CONSOLIDATED STATEMENTS OF CASH FLOWS </b></font></p>
<table cellspacing=0 cellpadding=0 width="100%">
<tr>
<td></td>
<td></td>
<td align=center valign=bottom colspan="5"><font size=1><b> Six months ended June 30, </b></font></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2001 </b></font></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2002 </b></font></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=bottom colspan="5"><font size=1><b> (Unaudited) </b></font></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Cash flows from operating activities:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Net loss</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(6,683,051</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(7,676,153</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;activities:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>13,208,535</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>1,984,494</font></td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impaiment losses on FCC broadcasting licenses and goodwill</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>17,481,717</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on investments</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>1,585,417</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on change in fair value of derivative financial instruments</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>2,759,000</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,871,000</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in assets and liabilities net of effects of acquisitions and <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dispositions of radio stations:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivables</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(174,945</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>3,422,129</font></td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses and other</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>1,114,728</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,819,274</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other assets</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,460,640</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(197,763</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in payables and accrued expenses</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(999,504</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,145,211</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in deferred tax liabilities</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(3,435,000</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(4,104,904</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>5,914,540</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>6,074,035</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Cash flows from investing activities:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Expenditures for property and equipment</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,906,046</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(848,814</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Payments for acquisitions of radio stations</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(128,305,753</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Payments for signal upgrade</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(2,477,000</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Proceeds from disposition of radio stations</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>19,650,000</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Payments from related parties</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>61,927</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>63,991</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(132,626,872</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>18,865,177</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Cash flows from financing activities:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Proceeds from issuance of indebtedness</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>123,250,000</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Principal payments on indebtedness</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(4,095</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(26,029,435</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Payments of loan fees</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(590,732</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>123,245,905</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(26,620,167</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Net decrease in cash and cash equivalents</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(3,466,427</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,680,955</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Cash and cash equivalents at beginning of period</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>5,742,628</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>4,998,526</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Cash and cash equivalents at end of period</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>2,276,201</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>3,317,571</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Cash paid for interest</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>6,758,595</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>8,312,869</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Cash paid for income taxes</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>816,581</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>458,653</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Supplement disclosure of non-cash investing and financing activities:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Equity investment acquired through placement of advertising air time</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>711,690</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Principal payments on indebtedness through placement of advertising air <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;time</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>996,823</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Note received as partial consideration for disposition of radio stations</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>&#151;</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>3,350,000</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr></table> <br> <p align=center><font size=2><i> See accompanying notes to consolidated financial statements </i></font></p> <center> <font size=2>3</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2><b> BEASLEY BROADCAST GROUP, INC. </b><br><b>
<a name="hy_bm_1">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</a> </b></font></p> <p align=left><font size=2><b> (1) </b>&nbsp;&nbsp;&nbsp;<b> Interim Financial Statements </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the opinion of management, the accompanying consolidated financial statements include all adjustments deemed necessary to summarize fairly and reflect the financial
position and results of operations of Beasley Broadcast Group, Inc. (&#147;the Company&#148;) for the interim periods presented. Results of the second quarter of 2002 are not necessarily indicative of results for the full year. These consolidated
financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Annual Report on Form 10-K for the year ended December 31, 2001.</font></p> <p align=left><font size=2><b> (2)
</b>&nbsp;&nbsp;&nbsp;<b> Accounting Change </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective January 1, 2002, the Company adopted Statement of Financial Accounting Standards
(&#147;SFAS&#148;) 142, <i> &#147;Goodwill and Other Intangible Assets.&#148; </i> SFAS 142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment at least annually in
accordance with the provisions of SFAS 142. In addition, to the extent an intangible asset is identified as having an indefinite useful life, the Company is required to test the intangible asset for impairment in accordance with the provisions of
SFAS 142. </font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the provisions of SFAS 142, as of January 1, 2002, the Company tested its FCC broadcasting licenses, which
were identified as intangible assets having indefinite useful lives, and goodwill for impairment. To estimate the fair value of its FCC broadcasting licenses and goodwill, the Company obtained appraisals from an independent appraisal company. As a
result of the testing, the Company recognized an impairment of $17.5 million related to FCC broadcasting licenses and goodwill in the Radio Group Three segment and recorded the loss as a cumulative effect of accounting change in the consolidated
statement of operations for the six months ended June 30, 2002. The cumulative effect of the accounting change, net of income tax effect, decreased net income approximately $12.1 million and earnings per share $0.50. </font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The changes in the carrying amount of FCC broadcasting licenses for the six months ended June 30, 2002 are as follows:</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="76" colspan="2"><font size=1><b> Radio </b><br><b> Group </b><br><b> One </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="83" colspan="2"><font size=1><b> Radio </b><br><b> Group </b><br><b> Two </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="75" colspan="2"><font size=1><b> Radio </b><br><b> Group </b><br><b> Three </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="87" colspan="2"><font size=1><b> Total </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Balances as of January 1, 2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>61,589,091</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="79"><font size=2>79,629,896</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>99,061,550</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="83"><font size=2>240,280,537</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Impairment losses</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="79"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(17,411,300</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="83"><font size=2>(17,411,300</font></td>
<td valign=bottom width="17"><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>FCC broadcasting licenses <br>&nbsp;&nbsp;&nbsp;written off related to <br>&nbsp;&nbsp;&nbsp;disposition of radio stations</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="79"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>(21,040,250</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="83"><font size=2>(21,040,250</font></td>
<td valign=bottom width="17"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Balances as of June 30, 2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>61,589,091</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="79"><font size=2>79,629,896</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>60,610,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="83"><font size=2>201,828,987</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The changes in the carrying amount of goodwill for the six months ended June 30, 2002 are as follows:</font></p>

<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8">&nbsp;</td>
<td align=center valign=bottom width="76" colspan="2"><font size=1><b> Radio </b><br><b> Group </b><br><b> One </b></font></td>
<td width="8">&nbsp;</td>
<td align=center valign=bottom width="82" colspan="2"><font size=1><b> Radio </b><br><b> Group </b><br><b> Two </b></font></td>
<td width="8">&nbsp;</td>
<td align=center valign=bottom width="76" colspan="2"><font size=1><b> Radio </b><br><b> Group </b><br><b> Three </b></font></td>
<td width="8">&nbsp;</td>
<td align=center valign=bottom width="87" colspan="2"><font size=1><b> Total </b></font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Balances as of January 1, 2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>8,892,865</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>3,080,706</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>121,813</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="83"><font size=2>12,095,384</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Impairment losses</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>(70,417</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="83"><font size=2>(70,417</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Goodwill written off related to <br>&nbsp;&nbsp;&nbsp;disposition of radio stations</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>(51,396)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="83"><font size=2>(51,396)</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Balances as of June 30, 2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>8,892,865</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>3,080,706</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="83"><font size=2>11,973,571</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <center> <br> <font size=2>4</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2><b> BEASLEY BROADCAST GROUP, INC. </b><br><b> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS &#150; (Continued) </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information presents the impact on net income (loss) and net income (loss) per share had FCC broadcasting licenses and goodwill not been amortized during
2001:</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="174" colspan="5"><font size=1><b> Three months ended June 30, </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="176" colspan="5"><font size=1><b> Six months ended June 30, </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="82" colspan="2"><font size=1><b> 2001 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="75" colspan="2"><font size=1><b> 2002 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="81" colspan="2"><font size=1><b> 2001 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="82" colspan="2"><font size=1><b> 2002 </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Net income (loss)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(4,100,631</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>2,600,939</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="77"><font size=2>(6,683,051</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(7,676,153</font></td>
<td valign=bottom width="17"><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Add back: FCC broadcasting <br>&nbsp;&nbsp;&nbsp;licenses amortization (net of <br>&nbsp;&nbsp;&nbsp;income tax effect)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>3,299,584</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>6,220,136</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Add back: Goodwill amortization <br>&nbsp;&nbsp;&nbsp;(net of income tax effect)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>235,437</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>387,345</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Adjusted net income (loss)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(565,610</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>2,600,939</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="77"><font size=2>(75,570</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(7,676,153</font></td>
<td valign=bottom width="17"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Basic and diluted income (loss) <br>&nbsp;&nbsp;&nbsp;per share:</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Net income (loss)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(0.17</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>0.11</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="77"><font size=2>(0.28</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(0.32</font></td>
<td valign=bottom width="17"><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;FCC broadcasting licenses <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amortization</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>0.14</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>0.26</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Goodwill amortization</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>0.01</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>0.02</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Adjusted net income (loss)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(0.02</font></td>
<td valign=bottom width="17"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="71"><font size=2>0.11</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="77"><font size=2>0.00</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>(0.32</font></td>
<td valign=bottom width="17"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Basic common shares <br>&nbsp;&nbsp;&nbsp;outstanding</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>24,273,441</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Diluted common shares <br>&nbsp;&nbsp;&nbsp;outstanding</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>24,310,014</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="71"><font size=2>24,316,087</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>24,312,500</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>24,308,731</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <br> <p align=left><font size=2><b> (3) </b>&nbsp;&nbsp;&nbsp;<b> Other Intangibles </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
intangibles, at cost, is comprised of the following:</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="186" colspan="5"><font size=1><b> December 31, 2001 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="178" colspan="5"><font size=1><b> June 30, 2002 </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="82" colspan="2"><font size=1><b> Gross carrying </b><br><b> amount </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="86" colspan="2"><font size=1><b> Accumulated </b><br><b> amortization </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="76" colspan="2"><font size=1><b> Gross carrying </b><br><b> Amount </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="85" colspan="2"><font size=1><b> Accumulated </b><br><b> amortization </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Amortized intangible assets:</font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Loan fees</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>5,302,268</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="82"><font size=2>(787,041</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>5,893,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="81"><font size=2>(1,157,998</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Other intangibles</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="78"><font size=2>1,688,227</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>(444,819</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>1,304,273</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="81"><font size=2>(504,350</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="78"><font size=2>6,990,495</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="82"><font size=2>(1,231,860</font></td>
<td valign=bottom width="18"><font size=2>)</font></td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>7,197,273</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="81"><font size=2>(1,662,348</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of January 1, 2002, estimated amortization expense for the next five years is summarized as
follows:</font></p>
<table width="60%" align=center cellspacing=0 cellpadding=0>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="66"><font size=2>1,015,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>2003</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="66"><font size=2>1,030,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>2004</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="66"><font size=2>1,030,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>2005</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="66"><font size=2>969,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>2006</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="66"><font size=2>805,000</font></td>
<td width="8">&nbsp;</td></tr></table> <br> <CENTER> </CENTER> <p align=left><font size=2><b> (4) </b>&nbsp;&nbsp;&nbsp;<b> Recent Accounting Pronouncements </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, the FASB issued SFAS 143, <i> &#147;Accounting for Asset Retirement Obligations.&#148; </i> SFAS 143 addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. SFAS 143 amends SFAS 19 and is effective for financial statements issued for fiscal years beginning after June 15, 2002. The Company
has not completed its evaluation of SFAS 143; however, management does not anticipate that the adoption of SFAS 143 will have a material impact on the Company&#146;s earnings or financial position upon adoption.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2001, the FASB issued SFAS 144, <i> &#147;Accounting for the Impairment or Disposal of Long-Lived Assets.&#148; </i> SFAS 144 addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. SFAS 144 is effective for financial statements issued for fiscal years beginning after December 15, 2001 and interim periods within those fiscal years. The Company has adopted SFAS 144
with no material impact on its consolidated financial statements.</font></p> <p align=center> <font size=2>5</font> </p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2><b> BEASLEY BROADCAST GROUP, INC. </b><br> <b> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS &#150; (Continued) </b></font></p> <p align=left><font size=2><b>(5) </b>&nbsp;&nbsp;&nbsp;<b>
Completed Disposition </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 20, 2002, the Company completed the disposition of two radio stations in the New Orleans market to
Wilks Broadcasting LLC. As consideration for the disposition of these stations the Company received $23.0 million, subject to certain adjustments, including $19.65 million in cash and a $3.35 million note payable from Wilks Broadcasting LLC. The
note accrues interest at 9% per annum and the principal amount and all accrued interest are due on June 20, 2004. The Company used $19.5 million of the net cash proceeds to repay a portion of the outstanding term loan under its credit facility. The
Company recorded a pre-tax loss of $297,000 on the disposition. The loss is reported in other non-operating expenses in the consolidated statement of operations for the six months ended June 30, 2002.</font></p> <p align=left><font size=2><b> (6)
</b>&nbsp;&nbsp;&nbsp;<b> Long-Term Debt </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002, the maximum commitment under the credit facility was $243.5 million and
the outstanding balance was $199.5 million. The credit facility bears interest at either the base rate or LIBOR plus a margin that is determined by the Company&#146;s debt to cash flow ratio. The base rate is equal to the higher of the prime rate or
the overnight federal funds effective rate plus 0.5%. As of December 31, 2001 and June 30, 2002, the credit facility carried interest at a weighted average rate of 5.0625% and 5.25%, respectively. Interest is generally payable monthly through
maturity on June 30, 2008. The scheduled reductions in the amount available under the credit facility may require principal repayments if the outstanding balance at that time exceeds the new maximum amount available under the credit facility. The
credit facility is secured by substantially all assets of the Company.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has entered into interest rate hedge agreements to
reduce the potential impact of changes in interest rates on its credit facility. The credit agreement requires the Company to maintain certain financial ratios and includes restrictive covenants. The restrictive covenants prohibit the payment of
dividends. As of June 30, 2002, the Company was in compliance with all applicable financial covenants. </font></p> <p align=left><font size=2><b> (7) </b>&nbsp;&nbsp;&nbsp;<b> Income Taxes </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s effective tax rate is approximately 40%, which differs from the federal statutory rate of 34% due to the effect of state income taxes and certain
expenses that are not deductible for tax purposes. For the six months ended June 30, 2002, the effective tax rate was decreased by adjustments totaling $0.9 million as a result of the completion of the Company&#146;s 2001 income tax
returns.</font></p> <CENTER> </CENTER> <p align=left><font size=2><b> (8) </b>&nbsp;&nbsp;&nbsp;<b> Income (Loss) Per Share </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
(loss) per share calculation information is as follows:</font></p>
<table align=center cellspacing=0 cellpadding=0 width="85%">
<tr>
<td></td>
<td></td>
<td align=center valign=bottom colspan="5"><font size=1><b> Three months ended June 30, </b></font></td>
<td></td>
<td align=center valign=bottom colspan="5"><font size=1><b> Six months ended June 30, </b></font></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2001 </b></font></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2002 </b></font></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2001 </b></font></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2002 </b></font></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Numerator:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Net income (loss)</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(4,100,631</font></td>
<td valign=bottom><font size=2>)&nbsp;&nbsp;</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>2,600,939</font></td>
<td>&nbsp;&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(6,683,051</font></td>
<td valign=bottom><font size=2>)&nbsp;&nbsp;</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(7,676,153</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Denominator for basic income (loss) <br> &nbsp;&nbsp;&nbsp;per share:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Weighted average shares</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,273,441</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,273,441</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,273,441</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,273,441</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Effect of dilutive securities ---</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Stock options</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>36,573</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>42,646</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>39,059</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>35,290</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Denominator for diluted income <br> &nbsp;&nbsp;&nbsp;(loss) per share:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Weighted average shares adjusted <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for dilutive securities</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,310,014</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,316,087</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,312,500</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>24,308,731</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Basic and diluted income (loss) per <br> &nbsp;&nbsp;&nbsp;share</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(0.17</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>0.11</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(0.28</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(0.32</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr></table> <p align=center><font size=2>6</font> </p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2><b> BEASLEY BROADCAST GROUP, INC. </b><br> <b> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS &#150; (Continued) </b></font></p> <p align=left><font size=2><b>(9) </b>&nbsp;&nbsp;&nbsp;<b>
Segment Information </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment information is as follows:</font></p>
<table align=center cellspacing=0 cellpadding=0 width="85%">
<tr>
<td></td>
<td></td>
<td align=center valign=bottom colspan="5"><font size=1><b> Three months ended June 30, </b></font></td>
<td></td>
<td align=center valign=bottom colspan="5"><font size=1><b> Six months ended June 30, </b></font></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="5"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2001 </b></font></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2002 </b></font></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2001 </b></font></td>
<td></td>
<td align=center valign=bottom colspan="2"><font size=1><b> 2002 </b></font></td>
<td></td> </tr>
<tr>
<td></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Net revenues:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Radio Group One</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>16,230,648</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>15,339,275</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>32,308,855</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>29,709,981</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Radio Group Two</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>9,848,562</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>10,269,230</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>17,174,671</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>18,486,239</font></td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Radio Group Three</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>4,135,024</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>2,742,481</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>6,573,429</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>5,049,119</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Total net revenues</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>30,214,234</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>28,350,986</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>56,056,955</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>53,245,339</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Broadcast cash flow:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Radio Group One</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>4,117,775</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>5,060,505</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>8,856,274</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>8,907,015</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Radio Group Two</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>3,039,223</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>3,694,558</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>4,254,575</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>6,196,212</font></td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Radio Group Three</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>1,311,655</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>985,655</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>1,838,017</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>1,561,065</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Total broadcast cash flow</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>8,468,653</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>9,740,718</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>14,948,866</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>16,664,292</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Reconciliation to income (loss) <br>&nbsp;&nbsp;&nbsp;before income taxes:</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Corporate general and <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;administrative</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(1,369,541</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(1,323,398</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(2,530,065</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(2,552,573</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Depreciation and amortization</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(7,169,790</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(962,708</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(13,208,535</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,984,494</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Interest expense</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(4,094,176</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(3,838,927</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(7,797,577</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(7,863,699</font></td>
<td valign=bottom><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Other non-operating income</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(2,079,777</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>732,502</font></td>
<td>&nbsp;</td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>(1,596,740</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom>&nbsp;</td>
<td align=right valign=bottom><font size=2>1,654,905</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;taxes</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(6,244,631</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>4,348,187</font></td>
<td>&nbsp;</td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>(10,184,051</font></td>
<td valign=bottom><font size=2>)</font></td>
<td valign=bottom><font size=2>$</font></td>
<td align=right valign=bottom><font size=2>5,918,431</font></td>
<td>&nbsp;</td> </tr>
<tr>
<td></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td></td> </tr></table> <br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Radio Group One includes radio stations located in Miami-Ft. Lauderdale, FL, West Palm Beach-Boca Raton, FL, Ft.
Myers-Naples, FL and Greenville-New Bern-Jacksonville, NC. Radio Group Two includes radio stations located in Boston, MA, Atlanta, GA, Philadelphia, PA, Fayetteville, NC, and Augusta, GA. Radio Group Three includes radio stations located in Las
Vegas, NV and New Orleans, LA.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broadcast cash flow consists of operating income (loss) before corporate general and administrative expenses
and depreciation and amortization.</font></p> <center> <font size=2>7</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_76"></a><font size=2> <b>ITEM 2. </b></font></td>
<td valign=top><font size=2><b> MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS </b></font></td></tr></table><br> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read the following discussion together with the financial statements and related notes included elsewhere in this report. The results discussed below are not
necessarily indicative of the results to be expected in any future periods. Certain matters discussed herein are forward-looking statements. This report contains &#147;forward-looking statements&#148; within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are &#147;forward-looking statements&#148; for purposes of federal and state securities laws, including any
projections of earnings, revenues or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future
economic conditions o r performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words &#147;may,&#148; &#147;will,&#148; &#147;estimate,&#148;
&#147;intend,&#148; &#147;continue,&#148; &#147;believe,&#148; &#147;expect&#148; or &#147;anticipate&#148; and other similar words. Such forward-looking statements may be contained in &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations,&#148; among other places. </font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we believe that the expectations reflected in any of our
forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking
statements, are subject to change and to inherent risks and uncertainties, such as unforeseen events that would cause us to broadcast commercial free for any period of time, and changes in the radio broadcasting industry generally. We do not intend,
and undertake no obligation, to update any forward-looking statement.</font></p> <p align=left><font size=2><b> General </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A radio
broadcasting company derives its revenues primarily from the sale of broadcasting time to local and national advertisers. The advertising rates that a radio station is able to charge and the number of advertisements that can be broadcast without
jeopardizing listener levels largely determine those revenues. Advertising rates are primarily based on three factors:</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>a radio station&#146;s audience share in the demographic groups targeted by advertisers, as measured principally by quarterly reports issued by The Arbitron Ratings Company;</font> </td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%" valign="top">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%" valign="top"><font size=2>the number of radio stations in the market competing for the same demographic groups; and</font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%" valign="top">&nbsp;</td>
<td width="94%" valign="top">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%" valign="top">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%" valign="top"><font size=2>the supply of, and demand for, radio advertising time.</font></td> </tr> </table> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations are divided
into three reportable segments, Radio Group One, Radio Group Two, and Radio Group Three. Net revenues, broadcast cash flow and other financial information for these segments are contained in the notes to our unaudited consolidated financial
statements included in Item 1 of this report.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Several factors may adversely affect a radio broadcasting company&#146;s performance in any
given period. In the radio broadcasting industry, seasonal revenue fluctuations are common and are due primarily to variations in advertising expenditures by local and national advertisers. Typically, revenues are lowest in the first calendar
quarter of the year. We generally incur advertising and promotional expenses to increase listenership and Arbitron ratings. However, because Arbitron reports ratings quarterly in most of our markets, any change in ratings, and therefore changes in
advertising revenues, tend to lag behind the incurrence of advertising and promotional spending. </font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the broadcasting industry, radio
stations often utilize trade or barter agreements to reduce cash paid for expenses by exchanging advertising time for goods or services. In order to maximize cash revenue from our inventory, we minimize our use of trade agreements and have generally
held barter revenues under 5% of our gross revenues and barter related broadcast cash flow under 3% of our broadcast cash flow.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
calculate same station results by comparing the performance of radio stations at the end of a relevant period to the performance of those same stations in the prior year&#146;s corresponding period, including the effect of barter revenues and
expenses. These results exclude two radio stations that were sold in the New Orleans market during the</font></p> <center> <font size=2>8</font> </center>

<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=left><font size=2> first quarter of 2002.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broadcast cash flow consists of operating income (loss)
before corporate general and administrative expenses and depreciation and amortization. Although broadcast cash flow is not a measure of performance or liquidity calculated in accordance with generally accepted accounting principles, we believe that
this measure is useful to an investor in evaluating our performance. This measure is widely used in the broadcast industry to evaluate a radio company&#146;s operating performance. However, you should not consider this measure in isolation or as a
substitute for operating income, cash flows from operating activities or any other measure for determining our operating performance or liquidity that is calculated in accordance with generally accepted accounting principles. In addition, because
broadcast cash flow is not calculated in accordance with generally accepted accounting principles, it is not necessarily comparable to similarly titled measures employed by other companies. Same station broadcast cash flow is the broadcast cash flow
of the radio stations included in our same station calculations.</font></p> <p align=left><font size=2><b> Results of Operations </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
March 2002, we completed the disposition of two radio stations in the New Orleans market. As of October 1, 2001, the purchaser began operating these stations under a time brokerage agreement until their disposition on March 20, 2002, which
contributed to lower net revenues and station operating expenses during the three and six months ended June 30, 2002. We also completed our barter agreements with eTour, Inc. in May 2001 and FindWhat.com in October 2001, which contributed to lower
net revenues during the three and six months ended June 30, 2002. In addition, we also completed our 1997 radio broadcast rights contract with the Florida Marlins in October 2001. On April 1, 2002, we began a one-year extension to our radio
broadcast rights contract with the Florida Marlins on more favorable terms for the 2002 season.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective January 1, 2002, we adopted
Statement of Financial Accounting Standards (&#147;SFAS&#148;) 142, <i> &#147;Goodwill and Other Intangible Assets.&#148; </i> SFAS 142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead
tested for impairment at least annually in accordance with the provisions of SFAS 142. This standard contributed to lower amortization expense for the three and six months ended June 30, 2002. In accordance with the provisions of SFAS 142, as of
January 1, 2002, we tested our FCC broadcasting licenses, which were identified as intangible assets having indefinite useful lives, and goodwill for impairment. To determine the fair value of our FCC broadcasting licenses and goodwill, we obtained
appraisals from an independent appraisal company. As a result of the testing, we recognized an impairment of $17.5 million related to FCC broadca sting licenses and goodwill in the Radio Group Three segment and recorded the loss as a cumulative
effect of accounting change in the consolidated statement of operations for the six months ended June 30, 2002. The cumulative effect of the accounting change, net of income tax effect, decreased net income $12.1 million and earnings per share $0.50
for the six months ended June 30, 2002.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our effective tax rate is approximately 40%, which differs from the federal statutory rate of 34%
due to the effect of state income taxes and certain expenses that are not deductible for tax purposes. For the six months ended June 30, 2002, the effective tax rate was decreased by adjustments totaling $0.9 million as a result of the completion of
our 2001 income tax returns.</font></p> <p align=left><font size=2><b> Three Months ended June 30, 2002 Compared to the Three Months Ended June 30, 2001 </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Net Revenue. </i>Net revenue decreased 6.2% to $28.4 million for the three months ended June 30, 2002 from $30.2 million for the three months ended June 30, 2001. The
decrease was primarily due to the disposition of two radio stations in the New Orleans market in March 2002, which had contributed $1.6 million to net revenues during the three months ended June 30, 2001. Net revenues also decreased as a result of
the completion of our barter agreements with eTour, Inc. in May 2001 and FindWhat.com in October 2001, which had contributed $0.8 million to net revenues during the three months ended June 30, 2001. On a same station basis, net revenues decreased
1.0% to $28.4 million for the three months ended June 30, 2002 from $28.6 million for the three months ended June 30, 2001.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Station
Operating Expenses. </i>Station operating expenses decreased 14.4% to $18.6 million for the three months ended June 30, 2002 from $21.7 million for the three months ended June 30, 2001. Station operating expenses consist of program and production
expenses, sales and advertising expenses and general and administrative expenses </font></p> <center> <font size=2>9</font> </center>

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 <p align=left><font size=2>incurred at our radio stations. The decrease was partially due to the disposition of two radio stations in the New Orleans market in March 2002. The decrease was also partially due to the
completion of our 1997 radio broadcast rights contract with the Florida Marlins. On a same station basis, station operating expenses decreased 10.0% to $18.6 million for the three months ended June 30, 2002 from $20.7 million for the three months
ended June 30, 2001. The decrease was primarily due to the completion of our 1997 radio broadcast rights contract with the Florida Marlins.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Broadcast Cash Flow. </i>Broadcast cash flow increased 15.0% to $9.7 million for the three months ended June 30, 2002 from $8.5 million for the three months ended
June 30, 2001. On a same station basis, broadcast cash flow increased 22.3% to $9.7 million for the three months ended June 30, 2002 from $8.0 million for the three months ended June 30, 2001. The increase in actual and same station broadcast cash
flow was primarily due to the completion of our 1997 radio broadcast rights contract with the Florida Marlins.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Corporate General and
Administrative Expenses. </i>Corporate general and administrative expenses decreased 3.4% to $1.3 million for the three months ended June 30, 2002 from $1.4 million for the three months ended June 30, 2001. Corporate general and administrative
expenses consist primarily of salaries, insurance, rent and other expenses incurred at our corporate offices.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Depreciation and
Amortization. </i>Depreciation and amortization decreased 86.6% to $1.0 million for the three months ended June 30, 2002 from $7.2 million for the three months ended June 30, 2001. The decrease was primarily due to the adoption of SFAS 142 on
January 1, 2002, which requires that our FCC broadcasting licenses and goodwill no longer be amortized, but instead tested for impairment at least annually in accordance with the provisions of SFAS 142.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Interest Expense. </i>Interest expense decreased 6.2% to $3.8 million for the three months ended June 30, 2002 from $4.1 million for the three months ended June 30,
2001. The decrease was partially due to a decrease in interest rates on our credit facility and partially due to a reduction of the outstanding balance under our credit facility with scheduled repayments.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Net Income (Loss). </i>Net income for the three months ended June 30, 2002 was $2.6 million compared to a net loss of $4.1 million for the three months ended June 30,
2001. The change was primarily due to the decrease in station operating expenses and the adoption of SFAS 142, which resulted in a decrease in amortization expense in 2002. Net income for 2002 also includes a $0.7 million gain in the fair value of
our derivative financial instruments. The net loss for 2001 included a $0.4 million loss on our investment in eTour, Inc. and a $1.8 million loss in the fair value of our derivative financial instruments.</font></p> <p align=left><font size=2><b>
Six Months ended June 30, 2002 Compared to the Six Months Ended June 30, 2001 </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Net Revenue. </i>Net revenue decreased 5.0% to $53.2
million for the six months ended June 30, 2002 from $56.1 million for the six months ended June 30, 2001. The decrease was partially due to the disposition of two radio stations in the New Orleans market during the first quarter of 2002, which had
contributed $2.6 million to net revenues during the six months ended June 30, 2001. This decrease was partially offset by the inclusion of six months of operations from our radio station acquisitions in the Las Vegas and Augusta markets which were
completed on February 1, 2001 and April 2, 2001, respectively. Net revenues also decreased as a result of the completion of our barter agreements with eTour, Inc. in May 2001 and FindWhat.com in October 2001, which had contributed $1.7 million to
net revenues during the six months ended June 30, 2001. On a same station basis, net revenues decreased 2.9% to $53.1 milli on for the six months ended June 30, 2002 from $54.7 million for the six months ended June 30, 2001. The decrease was
primarily due to the completion of our barter agreements with eTour, Inc. and FindWhat.com.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Station Operating Expenses. </i>Station
operating expenses decreased 11.0% to $36.6 million for the six months ended June 30, 2002 from $41.1 million for the six months ended June 30, 2001. Station operating expenses consist of program and production expenses, sales and advertising
expenses and general and administrative expenses incurred at our radio stations. The decrease was partially due to the disposition of two radio stations in the New Orleans market in March 2002. This decrease was partially offset by increased station
operating expenses due to the inclusion of six months of operations from our radio station acquisitions in the Las Vegas and Augusta markets, </font></p> <center> <font size=2>10</font> </center>

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 <p align=left><font size=2>which were completed on February 1, 2001 and April 2, 2001, respectively. The decrease was also partially due to the completion of our 1997 radio broadcast rights contract with the Florida
Marlins. In addition, the decrease was partially due to the absence of promotional expenses incurred during the first quarter of 2001 to promote a format change at a radio station in the Philadelphia market. On a same station basis, station
operating expenses decreased 9.6% to $36.6 million for the six months ended June 30, 2002 from $40.4 million for the six months ended June 30, 2001. The decrease was primarily due to the completion of our 1997 radio broadcast rights contract with
the Florida Marlins and to the absence of promotional expenses incurred during the first quarter of 2001 to promote a format change at a radio station in the Philadelphia market.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Broadcast Cash Flow. </i>Broadcast cash flow increased 11.5% to $16.7 million for the six months ended June 30, 2002 from $14.9 million for the six months ended June
30, 2001. On a same station basis, broadcast cash flow increased 15.8% to $16.5 million for the six months ended June 30, 2002 from $14.3 million for the six months ended June 30, 2001. The increase in actual and same station broadcast cash flow was
partially due to the completion of our 1997 radio broadcast rights contract with the Florida Marlins. The increase was also partially due to the absence of promotional expenses incurred during the first quarter of 2001 to promote a format change at
a radio station in the Philadelphia market. These increases were partially offset by a decrease in broadcast cash flow due to the completion of our barter agreements with eTour, Inc. and FindWhat.com. </font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Corporate General and Administrative Expenses. </i>Corporate general and administrative expenses increased 0.9% to $2.6 million for the six months ended June 30, 2002
from $2.5 million for the six months ended June 30, 2001. Corporate general and administrative expenses consist primarily of salaries, insurance, rent and other expenses incurred at our corporate offices.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Depreciation and Amortization. </i>Depreciation and amortization decreased 85.0% to $2.0 million for the six months ended June 30, 2002 from $13.2 million for the six
months ended June 30, 2001. The decrease was primarily due to the adoption of SFAS 142 on January 1, 2002, which requires that our FCC broadcasting licenses and goodwill no longer be amortized, but instead tested for impairment at least annually in
accordance with the provisions of SFAS 142.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Interest Expense. </i>Interest expense increased 0.8% to $7.9 million for the six months
ended June 30, 2002 from $7.8 million for the six months ended June 30, 2001. The increase was primarily due to financing our radio station acquisitions in the Las Vegas, New Orleans and Augusta markets during 2001 with draws from our credit
facility. The increase was partially offset by a decrease in interest rates on our credit facility and a reduction of the outstanding balance under our credit facility with scheduled repayments.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Net Loss. </i>Net loss for the six months ended June 30, 2002 was $7.7 million compared to a net loss of $6.7 million for the six months ended June 30, 2001. The net
loss for 2002 was primarily due to the adoption of SFAS 142, which resulted in a $12.1 million impairment loss, net of income tax effect, recorded as a cumulative effect of accounting change. This loss was partially offset by the decrease in station
operating expenses and amortization expense due to the adoption of SFAS 142. The net loss for 2002 also includes a $1.9 million gain in the fair value of our derivative financial instruments. The net loss for 2001 includes a $1.6 million loss on our
investment in eTour, Inc., a $2.8 million loss in the fair value of our derivative financial instruments and a $2.6 million gain on a previously written off related party receivable. </font></p> <p align=left><font size=2><b> Liquidity and Capital
Resources </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Overview. </i> Our primary sources of liquidity are internally-generated cash flow and our credit facility. Our
liquidity needs have been and will continue to be for working capital, debt service, radio station acquisitions and other general corporate purposes, including capital expenditures. We expect to provide for future liquidity needs through one or a
combination of the following:</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"> <font size=2>internally-generated cash flow;</font> </td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>our credit facility;</font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>additional borrowings, other than under our existing credit facility, to the extent permitted; and</font></td> </tr> </table> <p align=left>&nbsp;</p> <center> <font size=2>11</font> </center>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size="2">additional equity offerings.</font></td> </tr> </table> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002, we held $3.3 million in cash and cash
equivalents and had $44.0 million in remaining commitments available under our credit facility; however, our financial covenants as of June 30, 2002 would have limited additional borrowings to $16.3 million.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Net Cash Provided By Operating Activities. </i> Net cash provided by operating activities was $6.1 million and $5.9 million for the six months ended June 30, 2002 and
2001, respectively. The change is primarily due to a $3.6 million decrease in cash paid for station operating expenses and the receipt of a $2.2 million tax refund during 2002. These increases in cash were partially offset by a $1.5 million decrease
in cash receipts from net revenues and a $1.5 </font><font size=2>million increase in cash paid for interest during 2002. In addition, cash increased in 2001 due to the receipt of $2.6 million from a previously written off related party
receivable.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Net Cash Provided By (Used In) Investing Activities. </i> Net cash provided by investing activities was $18.9 million for
the six months ended June 30, 2002. Net cash used in investing activities was $132.6 million for the six months ended June 30, 2001. The change is primarily due to the receipt of cash proceeds totaling $19.65 million from the disposition of two
radio stations in the New Orleans market for $23.0 million in 2002, compared to the acquisitions of three radio stations in the Las Vegas market, three radio stations in the New Orleans market and two radio stations in the Augusta market for $128.3
million in 2001. Net cash used in investing activities also increased in 2001 by $2.5 million for a signal upgrade in the Las Vegas market. In addition, expenditures for property and equipment were $0.8 million during 2002 compared to $1.9 million
during 2001.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i> Net Cash Provided By (Used In) by Financing Activities. </i>Net cash used in financing activities was $26.6 million for
the six months ended June 30, 2002. Net cash provided by financing activities was $123.2 million for the six months ended June 30, 2001. The change is primarily due to a $19.5 million repayment of the credit facility with cash proceeds from the
disposition of two radio stations in the New Orleans market and $6.5 million of scheduled repayments of the credit facility in 2002. In 2001, we financed the acquisition of three radio stations in the Las Vegas market, three radio stations in the
New Orleans market and two radio stations in the Augusta market in 2001 with $123.2 million of borrowings under our credit facility. </font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>
Credit Facility. </i> As of June 30, 2002, the maximum commitment under our credit facility was $243.5 million and the outstanding balance was $199.5 million; however, our financial covenants as of June 30, 2002 would have limited additional
borrowings to $16.3 million. The credit facility consists of a $119.5 million revolving credit loan and a $124.0 million term loan. The revolving credit loan includes a $50.0 million sub-limit for letters of credit. The credit facility bears
interest at either the base rate or LIBOR plus a margin that is determined by our debt to cash flow ratio. The base rate is equal to the higher of the prime rate or the overnight federal funds effective rate plus 0.5%. As of June 30, 2002, the
credit facility carried interest at a weighted average rate of 5.25%. Interest is generally payable monthly through maturity on June 30, 2008. The scheduled reductions in the amount available under the credit facility may require principal
repayments if the outstanding balance at that time exceeds the new maximum available amount under the credit facility. The credit facility is secured by substantially all of our assets.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The scheduled reductions of the maximum commitment of the credit facility for fiscal 2002, the next four years and thereafter are as follows:</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="86" colspan="2"><font size=1><b> Revolving </b><br><b> Credit Loan </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="85" colspan="2"><font size=1><b> Term Loan </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="86" colspan="2"><font size=1><b> Total Credit </b><br><b> Facility </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="82"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="81"><font size=2>13,050,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="82"><font size=2>13,050,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>2003</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="81"><font size=2>19,575,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>19,575,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>2004</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>11,950,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="81"><font size=2>19,575,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>31,525,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>2005</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>17,925,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="81"><font size=2>19,575,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>37,500,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>2006</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>17,925,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="81"><font size=2>19,575,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>37,500,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Thereafter</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>71,700,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="81"><font size=2>39,150,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="82"><font size=2>110,850,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;&nbsp;&nbsp;Total</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="82"><font size=2>119,500,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="81"><font size=2>130,500,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="82"><font size=2>250,000,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <br> <BLOCKQUOTE> </BLOCKQUOTE> <center> <font size=2>12</font> </center>

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 <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We must pay a quarterly unused commitment fee, which is based upon our total leverage to operating cash flow ratio and
ranges from 0.25% to 0.375% of the unused portion of the maximum commitment. If the unused portion exceeds 50% of the maximum commitment, the fee is increased by 0.375%. For the three and six months ended June 30, 2002, our unused commitment fee was
$42,000 and $107,000, respectively.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are required to satisfy financial covenants, which require us to maintain specified financial ratios
and to comply with financial tests, such as ratios for maximum total leverage, minimum interest coverage and minimum fixed charges. As of June 30, 2002, these financial covenants included:</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="3%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size="2"><i> Maximum Total Leverage Test. </i>For the period from April 1, 2002 through June 30, 2002, our total debt must not exceed 7.0 times our operating cash flow for the four quarters ending on that day. For the period
from July 1, 2002 through September 30, 2002, the maximum ratio is 6.75 times. For the period from October 1, 2002 through December 31, 2002, the maximum ratio is 6.25 times. For the period from January 1, 2003 through March 31, 2003, the maximum
ratio is 6.0 times. For the period from April 1, 2003 through December 31, 2003, the maximum ratio is 5.5 times. For the period from January 1, 2004 through December 31, 2004, the maximum ratio is 5.0 times. For the period from January 1, 2005
through December 31, 2005, the maximum ratio is 4.5 times. For all periods after January 1, 2006, the maximum ratio is 4.0 times. The operating cash flow definition through September 30, 2002 excludes certain losses associated with our 1997 radio
broadcast rights contract with the Florida Marlins.</font></td> </tr>
<tr valign="top">
<td width="3%">&nbsp;</td>
<td width="3%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="3%">&nbsp;</td>
<td width="3%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2><i> Minimum Interest Coverage Test. </i>From April 1, 2002 through June 30, 2002, our operating cash flow for the four quarters ending on the last day of each quarter must not be less than 1.6 times the amount of our
interest expense. From July 1, 2002 through September 30, 2002, the minimum ratio is 1.75 times. For all periods after October 1, 2002, the minimum ratio is 2.0 times.</font></td> </tr>
<tr valign="top">
<td width="3%" height="25">&nbsp;</td>
<td width="3%" height="25">&nbsp;</td>
<td width="94%" height="25">&nbsp;</td> </tr>
<tr valign="top">
<td width="3%">&nbsp;</td>
<td width="3%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2><i> Minimum Fixed Charges Test. </i>Our operating cash flow for any four consecutive quarters must not be less than 1.05 times the amount of our fixed charges. Fixed charges include interest expense, current income tax
expense, capital expenditures, and scheduled principal repayments.</font></td> </tr> </table> <BLOCKQUOTE> <ul type="disc"> </UL> </BLOCKQUOTE> <BLOCKQUOTE> </BLOCKQUOTE> <BLOCKQUOTE><ul type="disc"></ul></BLOCKQUOTE> <BLOCKQUOTE><ul
type="disc"></ul></BLOCKQUOTE> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002, we were in compliance with all applicable financial covenants. As of June 30, 2002, our total
leverage ratio was 6.47 times operating cash flow, our interest coverage ratio was 1.87 times interest expense, and our fixed charges ratio was 1.26 times fixed charges.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure to comply with these or any other of our financial covenants could result in the acceleration of the maturity of our outstanding debt.</font></p> <p
align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that we will have sufficient liquidity and capital resources to permit us to meet our financial obligations for at least the next twelve
months. Poor financial results, unanticipated opportunities or unanticipated expenses could give rise to additional financing requirements sooner than we expect; and, we may not secure financing when needed or on acceptable terms.</font></p> <p
align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The credit facility also prohibits us from paying cash dividends and restricts our ability to make other distributions with respect to our capital stock.
The credit facility also contains other customary restrictive covenants. These covenants limit our ability to:</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>incur additional indebtedness and liens; </font></td> </tr>
<tr valign="top">
<td width="4%" height="23">&nbsp;</td>
<td width="2%" height="23">&nbsp;</td>
<td width="94%" height="23">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>enter into certain investments or joint ventures; </font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>consolidate, merge or effect asset sales; </font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>make overhead expenditures; </font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%" height="23">&nbsp;</td>
<td width="2%" height="23">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%" height="23"><font size="2">enter sale and lease-back transactions;</font></td> </tr> </table> <center> <font size="2"><br> 13</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>sell or discount accounts receivable; </font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>enter into transactions with affiliates or stockholders; </font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>sell, assign, pledge, encumber or dispose of capital stock; or </font></td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;</td>
<td width="94%">&nbsp;</td> </tr>
<tr valign="top">
<td width="4%">&nbsp;</td>
<td width="2%">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td width="94%"><font size=2>change the nature of our business. </font></td> </tr> </table> <p align=left><font size=2><b> Contractual Cash Obligations </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our contractual cash obligations for the remainder of fiscal year 2002 and thereafter consist of the following:</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> July 1 to </b><br><b> December 31, </b><br><b> 2002 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> 2003 </b><br><b> to 2004 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="76" colspan="2"><font size=1><b> 2005 </b><br><b> to 2006 </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> Thereafter </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="81" colspan="2"><font size=1><b> Total </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Long-term debt (1)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>6,530,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>51,103,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>75,000,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>66,836,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="77"><font size=2>199,469,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Operating leases</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>1,167,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>4,258,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>3,392,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>12,594,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>21,411,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Other operating contracts (2)</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>3,270,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>8,594,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="72"><font size=2>1,803,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="77"><font size=2>13,667,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Total contractual cash<br>&nbsp;&nbsp;&nbsp;obligations</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>10,967,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>63,955,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="72"><font size=2>80,195,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>79,430,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="77"><font size=2>234,547,000</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <br> <p align=left><font size=2><b> ______________ </b></font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="20">&nbsp;</td>
<td valign=top width="20"><font size=2>(1)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>The maturity on our credit facility could be accelerated if we do not maintain certain covenants.</font></td></tr></table> <CENTER> </CENTER> <BR>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="20">&nbsp;</td>
<td valign=top width="20"><font size=2>(2)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Other operating contracts include contracts for sports programming rights, on-air personalities, and rating services.</font></td></tr></table><br> <p align=left><font size=2><b> Other Commercial Commitments
</b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002, we had three collar agreements outstanding which required us to make interest payments based on the floor rate of
interest and notional amount as stated in the collar agreements. As of June 30, 2002, the notional amount upon maturity of these collar agreements was $95.0 million. Due to the overall decline in interest rates, the estimated fair value of these
collar agreements decreased and we recorded a $2.8 million liability for derivative financial instruments as of June 30, 2002. The estimated fair value of each interest rate collar agreement is based on the amounts the Company would expect to
receive or pay to terminate the agreement. These amounts could become due and payable prior to the expiration of the agreements.</font></p> <p align=left><font size=2><b> Critical Accounting Policies </b></font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. We
base our estimates on historical experience and assumptions we consider reasonable at the time of making those estimates. We evaluate our estimates on an on-going basis. Actual results may differ from these estimates under different circumstances or
using different assumptions.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have recorded an allowance for doubtful accounts for estimated losses resulting from customers&#146;
inability to make payments. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, then additional allowances may be required.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have recorded certain deferred tax assets, which we consider realizable due to the existence of certain deferred tax liabilities that are anticipated to reverse during
similar future periods; however, we<b> </b>have recorded a valuation allowance to reduce our deferred tax assets related to net operating losses in certain states. If we were to determine that we would be unable to fully realize some or all of our
remaining deferred tax assets in the future, an adjustment to our deferred tax assets would be recorded as an expense in the period such determination was made.</font></p> <center> <font size=2>14</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have significant amounts of property and equipment, recorded in our financial statements. We assess the
recoverability of our property and equipment on an on-going basis using estimates of future undiscounted cash flows that we expect to generate from these assets. Our radio stations operate in competitive markets and as such could experience adverse
changes in listenership and cash flows. These adverse changes may result in an impairment of our property and equipment and intangibles in the future.</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 1, 2002, we adopted SFAS 142, which requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for
impairment at least annually in accordance with the provisions of SFAS 142. To estimate the fair value of our FCC broadcasting licenses and goodwill for our initial impairment test as of January 1, 2002, we obtained appraisals from an independent
appraisal company. Subsequent estimates of fair value, whether by appraisal or management estimates of future discounted cash flows, may result in an impairment of our FCC broadcasting licenses and goodwill in the future.</font></p> <p
align=left><font size=2><b> Recent Pronouncements </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, the FASB issued SFAS 143, <i> &#147;Accounting for Asset Retirement
Obligations.&#148; </i> SFAS 143 addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. SFAS 143 amends SFAS 19 and is effective for
financial statements issued for fiscal years beginning after June 15, 2002. We have not completed our evaluation of SFAS 143; however, we do not anticipate that the adoption of SFAS 143 will have a material impact on our earnings or financial
position upon adoption.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In August 2001, the FASB issued SFAS 144, <i> &#147;Accounting for the Impairment or Disposal of Long-Lived
Assets.&#148; </i> SFAS 144 addresses financial accounting and reporting for the impairment or disposal of long-lived assets. SFAS 144 is effective for financial statements issued for fiscal years beginning after December 15, 2001 and interim
</font><font size=2>periods within those fiscal years. We have adopted SFAS 144 with no material impact on our consolidated financial statements.</font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_81"></a><font size=2> <b>ITEM 3. </b></font></td>
<td valign=top><font size=2><b> QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. </b></font></td></tr></table><br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market risk is the risk
of loss arising from adverse changes in market rates and prices such as interest rates, foreign currency exchange rate and commodity prices. Our primary exposure to market risk is interest rate risk associated with our credit facility. Amounts
borrowed under our credit facility incur interest at the London Interbank Offered Rate, or LIBOR, plus additional basis points depending on the outstanding balance under our credit facility. As of June 30, 2002, $199.5 million was outstanding under
our credit facility. We evaluate our exposure to interest rate risk by monitoring changes in interest rates in the market place.</font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To manage
interest rate risk associated with our credit agreement, we have entered into three interest rate collar agreements and one cap agreement. Under the collar agreements, our base LIBOR cannot exceed the cap interest rate and our base LIBOR cannot fall
below our floor interest rate. Under the cap agreement, our base LIBOR cannot exceed the cap interest rate. Notional amounts are used to calculate the contractual payments to be exchanged under the contract. As of December 31, 2001 and June 30,
2002, the notional amount upon maturity of these cap and collar agreements was $115.0 million and $105.0 million, respectively. As of June 30, 2002, our collar and cap agreements are summarized in the following chart:</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td valign=bottom align=Left><font size=1><b> Agreement </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> Notional </b><br><b> Amount </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="61" colspan="2"><font size=1><b> Floor </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="54" colspan="2"><font size=1><b> Cap </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="102" colspan="2"><font size=1><b> Expiration </b><br><b> Date </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> Estimated </b><br><b> Fair </b><br><b> Value </b></font></td>
<td width="8"></td> </tr>
<tr>
<td> <HR noshade align=Left width="55%" size=2 color="#000000"> </td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Interest rate collar</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>20,000,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Center valign=bottom width="57"><font size=2>5.45 %</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Right valign=bottom width="50"><font size=2>7.5%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Left valign=bottom width="98"><font size=2>November 2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>(293,000</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Interest rate collar</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>20,000,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Center valign=bottom width="57"><font size=2>5.75 %</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Right valign=bottom width="50"><font size=2>7.35%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Left valign=bottom width="98"><font size=2>November 2002</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>(317,000</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Interest rate collar</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>55,000,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Center valign=bottom width="57"><font size=2>4.95 %</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Right valign=bottom width="50"><font size=2>7.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Left valign=bottom width="98"><font size=2>October 2003</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>(2,149,000</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Interest rate cap</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>10,000,000</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Center valign=bottom width="57"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Right valign=bottom width="50"><font size=2>6.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=Left valign=bottom width="98"><font size=2>May 2004</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr BGCOLOR="#CCEEFF">
<td></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4"><font size=2>$</font></td>
<td align=right valign=bottom width="70"><font size=2>(2,759,000</font></td>
<td valign=bottom width="18"><font size=2>)</font></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td width="4"></td>
<td></td>
<td width="8"></td>
<td align=center valign=top colspan="2"><HR noshade align=center width="100%" size=4 color="#000000"></td>
<td width="8"></td></tr></table> <center> <br> <font size=2>15</font> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2><b> PART II OTHER INFORMATION </b></font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_71"></a><font size=2> <b>ITEM 1. </b></font></td>
<td valign=top><font size=2><b> LEGAL PROCEEDINGS. </b></font></td></tr></table><br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We currently and from time to time are involved in litigation
incidental to the conduct of our business, but we are not a party to any lawsuit or proceeding which, in the opinion of management, is likely to have a material adverse effect on us.</font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_5"></a><font size=2> <b>ITEM 2. </b></font></td>
<td valign=top><font size=2><b> CHANGES IN SECURITIES AND USE OF PROCEEDS. </b></font></td></tr></table><br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_41"></a><font size=2> <b>ITEM 3. </b></font></td>
<td valign=top><font size=2><b> DEFAULTS UPON SENIOR SECURITIES. </b></font></td></tr></table><br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_86"></a><font size=2> <b>ITEM 4. </b></font></td>
<td valign=top><font size=2><b> SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. </b></font></td></tr></table><br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We held our annual meeting of
stockholders on April 23, 2002. The matters voted on at the meeting and the results of these votes are as follows:</font></p> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;Election of the following directors:</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> For </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="61" colspan="2"><font size=1><b> Against </b><br><b> or </b><br><b> Withheld </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="72" colspan="2"><font size=1><b> Abstentions </b><br><b> and </b><br><b> Broker </b><br><b> Non-votes </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Directors Elected by Holders of<br>&nbsp;&nbsp;&nbsp;<u> All Classes of Common Stock </u></font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>George G. Beasley</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>167,989,292</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>469,455</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Bruce G. Beasley</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>167,989,292</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>469,455</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Caroline Beasley</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>167,989,292</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>469,455</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Brian E. Beasley</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>167,989,292</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>469,455</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Joe B. Cox</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>168,325,200</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>133,547</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Allen B. Shaw</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>167,989,292</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>469,455</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Directors Elected by Holders<br>&nbsp;&nbsp;&nbsp;<u> of Class A Common Stock </u></font></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>Mark S. Fowler</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>5,650,078</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>407,909</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr BGCOLOR="#CCEEFF">
<td valign=bottom align=Left><font size=2>Herbert W. McCord</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>5,924,440</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="57"><font size=2>133,547</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="68"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td></tr></table> <br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;Ratification of the appointment of KPMG LLP as independent auditors.</font></p>
<table width="85%" align=center cellspacing=0 cellpadding=0>
<tr>
<td valign=bottom align=Center><font size=1><b> &nbsp; </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> For </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="54" colspan="2"><font size=1><b> Against </b><br><b> or </b><br><b> Withheld </b></font></td>
<td width="8"></td>
<td align=center valign=bottom width="74" colspan="2"><font size=1><b> Abstentions </b><br><b> and </b><br><b> Broker </b><br><b> Non-votes </b></font></td>
<td width="8"></td> </tr>
<tr>
<td></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td>
<td colspan="2"><HR noshade align=center width="100%" size=2 color="#000000"></td>
<td width="8"></td> </tr>
<tr>
<td valign=bottom align=Left><font size=2>&nbsp;</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>168,373,110</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="50"><font size=2>85,637</font></td>
<td width="8">&nbsp;</td>
<td valign=bottom width="4">&nbsp;</td>
<td align=right valign=bottom width="70"><font size=2>&#151;</font></td>
<td width="8">&nbsp;</td> </tr>
<tr>
<td></td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td>
<td width="4">&nbsp;</td>
<td>&nbsp;</td>
<td width="8">&nbsp;</td></tr></table> <br>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_79"></a><font size=2> <b>ITEM 5. </b></font></td>
<td valign=top><font size=2><b> OTHER INFORMATION </b></font></td></tr></table><br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p> <center> <font size=2>16</font>
</center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <BR>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td valign=top width="60">
<a name="hy_bm_37"></a><font size=2> <b>ITEM 6. </b></font></td>
<td valign=top><font size=2><b> EXHIBITS AND REPORTS ON FORM 8-K. </b></font></td></tr></table><br> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;Exhibits</font></p>
<table width="95%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="10">&nbsp;</td>
<td valign=bottom align=center width="58"><font size=1><b> Exhibit </b><br><b> <u> Number </u> </b></font></td>
<td width="10">&nbsp;</td>
<td valign=bottom align=left width="850"><font size=1><b> <u> Description </u> </b></font></td></tr>
<tr>
<td width="10">&nbsp;</td>
<td>&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="10">&nbsp;</td>
<td valign=top align=center width="58"><font size=2>3.1</font></td>
<td width="10">&nbsp;</td>
<td align=left width="850"><font size=2>Amended certificate of incorporation of the Registrant.(1)</font></td></tr>
<tr>
<td width="10">&nbsp;</td>
<td>&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr>
<tr>
<td width="10">&nbsp;</td>
<td valign=top align=center width="58"><font size=2>3.2</font></td>
<td width="10">&nbsp;</td>
<td align=left width="850"><font size=2>Third amended and restated bylaws of the Registrant.(2)</font></td></tr>
<tr>
<td width="10">&nbsp;</td>
<td>&nbsp;</td>
<td width="10">&nbsp;</td>
<td>&nbsp;</td></tr></table> <p align=left><font size=2><b> ______________ </b></font></p>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="20">&nbsp;</td>
<td valign=top width="20"><font size=2>(1)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Incorporated by reference to Beasley Broadcast Group&#146;s Registration Statement on Form S-1 (333-91683).</font></td></tr></table><br>
<table width="100%" cellspacing=0 cellpadding=0 border=0>
<tr>
<td width="20">&nbsp;</td>
<td valign=top width="20"><font size=2>(2)</font></td>
<td width="10">&nbsp;</td>
<td valign=top><font size=2>Incorporated by reference to Exhibit 3.1 to Beasley Broadcast Group&#146;s Annual Report on Form 10-K dated February 13, 2001.</font></td></tr></table><br> <p align=left><font
size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;No reports on Form 8-K were filed during the three months ended June 30, 2002</font></p> <center> <font size=2>17</font> </center>

<p Style='page-break-before:always'>
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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align=center><font size=2><b>
<a name="hy_bm_96">SIGNATURES</a> </b></font></p> <p align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>
<table width="80%" cellspacing=0 cellpadding=0>
<tr>
<td width="40%" align=left><font size=2>Date: August 13, 2002<br> <br><br></font></td>
<td width="5%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="40%" align=left><font size=2><b> BEASLEY BROADCAST GROUP, INC. </b><br><br><br></font></td></tr>
<tr>
<td width="40%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="5%" align=right><font size=2>&nbsp;&nbsp;&nbsp;</font></td>
<td width="40%" align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ George G. Beasley</font></td></tr>
<tr>
<td></td>
<td width="5%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td><HR noshade align=center width="100%" size=2 color="#000000"></td></tr>
<tr>
<td width="40%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="40%" align=left><font size=2>Name:&nbsp;George G. Beasley<br>Title: &nbsp;&nbsp;Chairman of the Board and Chief<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Officer</font></td></tr>
</TABLE><br>
<table width="80%" cellspacing=0 cellpadding=0>
<tr>
<td width="40%" align=left><font size=2>Date: August 13, 2002<br> <br><br></font></td>
<td width="5%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="40%" align=left><font size=2><br><br><br></font></td></tr>
<tr>
<td width="40%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="5%" align=right><font size=2>&nbsp;&nbsp;&nbsp;</font></td>
<td width="40%" align=left><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Caroline Beasley</font></td></tr>
<tr>
<td></td>
<td width="5%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td><HR noshade align=center width="100%" size=2 color="#000000"></td></tr>
<tr>
<td width="40%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="5%">&nbsp;</td>
<td width="40%" align=left><font size=2>Name: Caroline Beasley<br>Title:&nbsp;&nbsp;&nbsp;Vice President, Chief Financial<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Officer, Secretary, Treasurer
and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Director (principal financial and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounting
officer)</font></td></tr> </TABLE><br> <CENTER><font size=2>18</font></CENTER>
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