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Political Advertising helps Saga have good first quarter

Saga Communications, Inc. Reports 1st Q 2008 Results

Grosse Pointe Farms, MI - May 8, 2008 - Saga Communications, Inc. (NYSE-SGA) today reported net income increased 23.0% to $910 thousand ($.05 per fully diluted share) for the quarter ended March 31, 2008 compared to $740 thousand ($.04 per fully diluted share) for the same period in 2007.  Net operating revenue for the quarter decreased $351 thousand over the comparable period in 2007 to $31.5 million.  Station operating expense decreased $574 thousand to $25.4 million (station operating expense includes depreciation and amortization attributable to the stations) and operating income was approximately even with 1st quarter 2007 at $3.6 million.  Gross political revenue for the quarter was $651 thousand compared to $59 thousand for the same period last year.  Free cash flow increased 93.5% to $1.7 million for the quarter.  On a same station basis for the year, net operating revenue decreased 2.0% to $31.2 million, operating income decreased 2.4% to $3.5 million and station
operating expense decreased 3.1% to $25.2 million.

Capital expenditures in the first quarter of 2008 were $2.0 million compared to $2.4 million for the comparable period in 2007.  The Company expects capital expenditures to total $9.0 million for 2008. 

During the quarter ended March 31, 2008, the Company bought back 239,113 shares of stock for a total purchase price of $1.4 million.  Since inception of the program and through May 6, 2008, the Company has bought back 2,267,063 shares of stock.