Lincoln Financial Group Announces Sale of Television, Sports, and Charlotte Radio Properties

Lincoln Financial Group Announces Sale of Television, Sports, and Charlotte Radio Properties

PHILADELPHIA, Nov. 12 /PRNewswire-FirstCall/ -- Lincoln Financial Group (NYSE:LNC) today announced that it has reached definitive agreements to sell its three television stations in Charlotte, Richmond, and Charleston, as well as its sports syndication business, to Raycom Media for $583 million in cash. Lincoln Financial also announced that it has reached a separate definitive agreement with Greater Media to sell its Charlotte radio stations for $100 million in cash. The company will continue to operate and invest in its remaining radio properties to improve value and will explore options to divest those assets as market conditions dictate.

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"We are pleased to have reached these agreements with Raycom Media and Greater Media," said Lincoln Financial Group President and CEO Dennis R. Glass. "Raycom has been a valuable partner in the sports syndication business and, given Raycom's presence in the southeastern U.S., is a logical partner for our television assets. Greater Media is a well-established company with significant radio holdings in Boston, Detroit, and Philadelphia, as well as throughout New Jersey. It is known for its belief in local management and community service. Both are high-quality media companies with a commitment to building these businesses."

Net proceeds from the transactions are expected to be used primarily for debt reduction and share repurchases. The sports syndication transaction is expected to close by early December. The transactions for the television and radio properties, which are expected to close by the second quarter of 2008, are subject to regulatory approval and other customary closing conditions. Management expects to provide additional information regarding the transactions at the company's 2007 Conference for Investors and Bankers on November 13, 2007.

Merrill Lynch & Co. served as exclusive financial advisor to Lincoln Financial Group.

About Lincoln Financial Group

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in Philadelphia, the companies of Lincoln Financial Group had assets under management of $251 billion as of September 30, 2007. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; Lincoln Financial Media, which owns and operates three television stations, 18 radio stations, and the Lincoln Financial Sports production and syndication business; and Lincoln UK. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.

Forward-Looking Statements-Cautionary Language

Certain statements made in this release and in other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe", "anticipate", "expect", "estimate", "project", "will", "shall" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in our businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward- looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements include, among others:

   -- Problems arising with the ability to successfully integrate Jefferson-      Pilot's businesses, which may affect our ability to operate as      effectively and efficiently as expected or to achieve the expected      synergies from the merger or to achieve such synergies within our      expected timeframe;   -- Legislative, regulatory or tax changes, both domestic and foreign, that      affect the cost of, or demand for, Lincoln's products, the required      amount of reserves and/or surplus, or otherwise affect our ability to      conduct business, including changes to statutory reserves and/or risk-      based capital requirements related to secondary guarantees under      universal life and variable annuity products such as Actuarial      Guideline VACARVM; restrictions on revenue sharing and 12b-1 payments;      and the potential for U.S. Federal tax reform;   -- The initiation of legal or regulatory proceedings against Lincoln or      its subsidiaries and the outcome of any legal or regulatory      proceedings, such as: (a) adverse actions related to present or past      business practices common in businesses in which Lincoln and its      subsidiaries compete; (b) adverse decisions in significant actions      including, but not limited to, actions brought by federal and state      authorities, and extra-contractual and class action damage cases; (c)      new decisions that result in changes in law; and (d) unexpected trial      court rulings;   -- Changes in interest rates causing a reduction of investment income, the      margins of Lincoln's fixed annuity and life insurance businesses and      demand for Lincoln's products;   -- A decline in the equity markets causing a reduction in the sales of      Lincoln's products, a reduction of asset-based fees that Lincoln      charges on various investment and insurance products, an acceleration      of amortization of deferred acquisition costs, value of business      acquired, deferred sales inducements and deferred front-end loads and      an increase in liabilities related to guaranteed benefit features of      Lincoln's variable annuity products;   -- Ineffectiveness of Lincoln's various hedging strategies used to offset      the impact of changes in the value of liabilities due to changes in the      level and volatility of the equity markets and interest rates;   -- A deviation in actual experience regarding future persistency,      mortality, morbidity, interest rates or equity market returns from      Lincoln's assumptions used in pricing its products, in establishing      related insurance reserves, and in the amortization of intangibles that      may result in an increase in reserves and a decrease in net income,      including as a result of investor-owned life insurance business;   -- Changes in accounting principles generally accepted in the United      States that may result in unanticipated changes to Lincoln's net      income, including the impact of Statements of Financial Accounting      Standards 157 and 159;   -- Lowering of one or more of Lincoln's debt ratings issued by nationally      recognized statistical rating organizations, and the adverse impact      such action may have on Lincoln's ability to raise capital and on its      liquidity and financial condition;   -- Lowering of one or more of the insurer financial strength ratings of      Lincoln's insurance subsidiaries and the adverse impact such action may      have on the premium writings, policy retention, and profitability of      its insurance subsidiaries;   -- Significant credit, accounting, fraud or corporate governance issues      that may adversely affect the value of certain investments in the      portfolios of Lincoln's companies requiring that Lincoln realize losses      on such investments;   -- The impact of acquisitions and divestitures, restructurings, product      withdrawals and other unusual items, including Lincoln's ability to      integrate acquisitions and to obtain the anticipated results and      synergies from acquisitions;   -- The adequacy and collectibility of reinsurance that Lincoln has      purchased;   -- Acts of terrorism, war, or other man-made and natural catastrophes that      may adversely affect Lincoln's businesses and the cost and availability      of reinsurance;   -- Competitive conditions, including pricing pressures, new product      offerings and the emergence of new competitors, that may affect the      level of premiums and fees that Lincoln can charge for its products;   -- The unknown impact on Lincoln's business resulting from changes in the      demographics of Lincoln's client base, as aging baby-boomers move from      the asset-accumulation stage to the asset-distribution stage of life;   -- Loss of key management, portfolio managers in the Investment Management      segment, financial planners or wholesalers; and   -- Changes in general economic or business conditions, both domestic and      foreign, that may be less favorable than expected and may affect      foreign exchange rates, premium levels, claims experience, the level of      pension benefit costs and funding, and investment results.   

The risks included here are not exhaustive. Lincoln's annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC include additional factors which could impact Lincoln's business and financial performance. Moreover, Lincoln operates in a rapidly changing and competitive environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors.

Further, it is not possible to assess the impact of all risk factors on Lincoln's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this report.

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Source: Lincoln Financial Group

CONTACT: Investors: Jim Sjoreen, +1-215-448-1420,
InvestorRelations@LFG.com; or Media: Laurel O'Brien, +1-215-255-1520,
MediaRelations@LFG.com, both of Lincoln Financial Group

Web site: http://www.lfg.com/
http://www.lincolnfinancial.com/

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