1192503--3/30/2007--LBI_MEDIA

related topics

{capital, credit, financial}

{acquisition, growth, future}

{product, market, service}

{debt, indebtedness, cash}

{condition, economic, financial}

{stock, price, operating}

{tax, income, asset}

{control, financial, internal}

{personnel, key, retain}

{financial, litigation, operation}

{product, candidate, development}

Risks Related to Our Business We may suffer a decrease in advertising revenues due to competitive forces. The loss of key personnel could disrupt our business and result in a loss of advertising revenues. Our growth depends on successfully executing our acquisition strategy. If we cannot successfully develop and integrate our recent and future acquisitions, our financial results could be adversely affected. If we are unable to convert acquired stations successfully to a Spanish-language format, anticipated revenues from these acquisitions may not be realized. Cancellations or reductions of advertising could adversely affect our results of operations. Our debt service obligations will require a significant amount of cash and could adversely affect our ability to operate our company successfully and achieve growth through acquisitions. The restrictive covenants in our debt instruments may affect our ability to operate our business successfully. The loss of our status as a qualified subchapter S subsidiary may result in us having less cash available for our operations. If we are unable to maintain our FCC license for any station, we would have to cease operations at that station. Our failure to maintain our FCC broadcast licenses could cause a default under our senior credit facilities and cause an acceleration of our indebtedness. Our broadcast licenses could be revoked if more than 25% of our outstanding capital stock is owned of record or voted by non-U.S. citizens, foreign governments or non-U.S. corporations. If we fail to maintain an effective system of internal controls over financial reporting, we may not be able to accurately report our financial results or prevent fraud, which could have a significant impact on our business and reputation. Risks Related to the Television and Radio Industries Our television and radio stations could be adversely affected by changes in the advertising market or a recession in the U.S. economy or in the economies of the regions in which we operate. Changes in the rules and regulations of the FCC could result in increased competition for our broadcast stations that could lead to increased competition in our markets. The required conversion to digital television may impose significant costs that might not be balanced by consumer demand. Because we rely on must carry rights for cable systems to carry our full power television stations, any change in current laws or regulations that eliminate or limit our ability to require cable systems to carry our full power television stations could result in the loss of coverage in those markets, which could result in a decrease in our market ratings and a potential loss of advertising revenues. Direct broadcast satellite companies may not continue to carry our local television stations, which could result in a decrease in our market ratings and a potential loss of advertising revenues. We may have difficulty obtaining regulatory approval for acquisitions in our existing markets and, potentially, new markets. We must respond to the rapid changes in technology, services and standards which characterize our industry in order to remain competitive. Cautionary Statement Regarding Forward-Looking Statements

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1192503--3/30/2007--LBI_MEDIA_INC