Nexstar Broadcasting Reduces Bank Borrowings with Proceeds of Newly Issued Notes

Nexstar Broadcasting Group, Inc. (NASDAQ: NXST) ("NBG”) announced today that its subsidiary, Nexstar Broadcasting, Inc. ("Nexstar”), sold $35,623,410 aggregate principal amount of newly issued Senior Subordinated PIK Notes due January 15, 2014 (the "PIK Notes”) in a private offering to several purchasers advised by AIG Investments. Nexstar will use the net proceeds from the offering of the PIK Notes to repay borrowings under its senior bank credit facility. Interest on the PIK Notes will accrue at 12.0% per annum and will be payable semi-annually on each January 15 and July 15 (beginning on January 15, 2009). The interest on the PIK Notes will be payable-in-kind ("PIK”) from the closing date to January 15, 2010. Thereafter, the PIK Notes will be payable entirely in cash beginning at 13.0% per annum and increasing by 0.50% every six months thereafter up to a maximum rate of 15.0% per annum. During the PIK-paying period the PIK Notes will be excluded from Nexstar’s total leverage calculation under its senior secured credit facility. The PIK Notes are non-callable through September 30, 2008 and thereafter will be callable at various premiums depending on the call date. Matthew E. Devine, Nexstar’s Chief Financial Officer, commented, "We believe Nexstar is on track to end 2008 with a total debt leverage ratio of approximately 5.5x compared to its permitted leverage covenant of 6.50x at December 31, 2008. This financing provides Nexstar with an additional margin to ensure that Nexstar remains comfortably in compliance with our bank covenants as we de-lever our balance sheet in 2008. We value AIG Investments’ confidence in Nexstar and our long-term plans for growth.” On March 31, 2008, the 11.375% Notes due 2013 (the "2013 Notes”) of NBG’s subsidiary, Nexstar Finance Holdings Inc. ("Nexstar Finance”), accreted to $130 million, and on April 1, 2008, Nexstar Finance redeemed approximately $47 million in principal amount of the 2013 Notes outstanding to ensure that they would not be deemed "applicable high yield discount obligations” within the meaning of Section 163(i)(1) of the Internal Revenue Code. This principal payment was funded with cash generated from operations and from borrowings under Nexstar’s senior secured credit facility. Reflecting the issuance of the PIK Notes, as of June 30, 2008, Nexstar’s consolidated total debt (including the $83 million outstanding of 2013 Notes) is approximately $625 million. About Nexstar Broadcasting Group, Inc. Nexstar Broadcasting Group currently owns, operates, programs or provides sales and other services to 50 television stations in 29 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama and New York. Nexstar’s television station group includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches approximately 8.25% of all U.S. television households. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The offering was made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. The PIK Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and unless so registered, may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws. Forward-Looking Statements This news release includes forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward-looking statements include information preceded by, followed by, or that includes the words "guidance," "believes," "expects," "anticipates," "could," or similar expressions. For these statements, Nexstar claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this news release, concerning, among other things, changes in net revenue, cash flow and operating expenses, involve risks and uncertainties, and are subject to change based on various important factors, including the impact of changes in national and regional economies, our ability to service and refinance our outstanding debt, successful integration of acquired television stations (including achievement of synergies and cost reductions), pricing fluctuations in local and national advertising, future regulatory actions and conditions in the television stations' operating areas, competition from others in the broadcast television markets served by Nexstar, volatility in programming costs, the effects of governmental regulation of broadcasting, industry consolidation, technological developments and major world news events. Unless required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this news release might not occur. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.