Source: Company Press Release
 
NEW YORK -- An ad hoc committee (the "Ad Hoc Committee") of holders of over two-thirds of the 13 1/4% (now 14 1/4%) junior exchangeable preferred stock issued by Ion Media Networks, Inc. announced today that it presented Ion Media's Board of Directors with a transaction proposal. The Ad Hoc Committee believes its proposal is materially better for Ion Media than the proposal made by NBC Universal, Inc. and Citadel Limited Partnership (the "NBCU/Citadel Proposal") that was filed with the Securities and Exchange Commission on January 18, 2007. The transaction proposed by the Ad Hoc Committee (i) reduces Ion Media's fixed obligations by more than $1.25 billion, (ii) maintains significant availability of the Company's subordinated debt basket, (iii) provides the Company with a new money investment of $100 million, (iv) provides value to the classes of Ion Media's preferred stock in relative order of priority, (v) greatly simplifies the Company's existing capital structure and creates common stock currency for prospective capital needs, and (vi) provides certain holders of common stock a cash recovery consistent with the NBCU/Citadel Proposal.
 
According to Kaye Handley, co-chair of the Ad Hoc Committee and Managing Director of AIG Global Investment Group, "The transaction provides material benefits to Ion Media in several key areas. Perhaps most importantly, the transaction addresses Ion Media's need for financial flexibility and increased access to capital. In our view, this proposal is far superior to the NBCU/Citadel Proposal. We look forward to working with the Company and its board to achieve a consensual restructuring."
 
A copy of the term sheet setting forth the Ad Hoc Committee's transaction proposal is attached.
 
The Ad Hoc Committee is represented by Daniel Golden and Ira Dizengoff of Akin Gump Strauss Hauer & Feld LLP and Marc Puntus and Lloyd Sprung of Miller Buckfire & Co., LLC.
 
Link to Proposal Term Sheet:
 
http://sec.gov/Archives/edgar/data/923877/000129993307000992/exhibit2.htm