March 31, 2008 - New York, NY

Interep Reaches Agreement on Restructuring and Secures New Financing

Company and Financial Partners Agree on New Capital Structure for Long-Term Growth

Interep (IREP.PK), the nation’s largest independent advertising sales and marketing company specializing in radio, the Internet, television and complementary media, announced today that it has entered into a consensual balance sheet restructuring to be implemented through a Chapter 11 plan of reorganization.  This agreement, which is supported by Interep’s largest bondholders, funds managed by Oaktree Capital Management, L.P. and Silver Point Capital, L.P., allows the company to eliminate all of its existing cash-pay indebtedness.  Oaktree and Silver Point have also agreed to provide Interep with a new $25 million credit facility.

“The strategic decision Interep has chosen to take today establishes a solid financial footing for the company going forward,” said David Kennedy, the company’s Vice Chairman and Chief Executive Officer.  “With the agreement of the key bondholders, the company now has a plan that will reduce debt, provide the financial resources to grow, and put any uncertainty about Interep’s future behind us.”

Interep noted that its clients and customers will not be affected by the Chapter 11 process, and that the company intends to honor all obligations in the ordinary course.

The restructuring was pre-arranged and filed by Interep today with the United States Bankruptcy Court for the Southern District of New York.  The plan is referred to as “pre-arranged” because it has already been negotiated with and has the support of the company’s largest bondholders, which will enable it to be implemented on an expedited basis.  Interep anticipates that the reorganization will receive formal court approval within 90 days.  

Mr. Kennedy added, “This agreement was made possible because of the commitment of these long-term financial partners, the outstanding staff and management of Interep, and the tremendous radio and television station clients, agencies and advertisers the company serves.  I am grateful to all of them for their patience and trust as the company has worked diligently over the past several months to address its balance sheet issues for the long-term.  Today’s announcement marks an exciting new chapter for Interep, one that I’m confident will demonstrate how a well-capitalized and truly independent rep firm will be able to achieve the best possible results for everyone it serves.”

About Interep

Interep (IREP.PK) is the nation's largest independent advertising sales and marketing company specializing in radio, the Internet, television and complementary media, with offices in 17 cities. Interep is the parent company to the following radio representation firms: ABC Radio Sales, D&R Radio, CBS Radio Sales, McGavren Guild Radio, and SBS/Interep. Interep is also parent to Azteca America Spot Television Sales, Hispanic Independent Television Sales (HITS), and Interep Interactive, including Winstar Interactive. Divisions benefiting our clients and customers include our unwired network radio division, Interep NetSolutions™, Interep Innovations, our business development division, including the Interep Marketing Group (IMG) and Promotion Marketing; and Morrison and Abraham, a sales consulting firm. For more information, visit the company's website at http://www.interep.com.