899045--2/27/2009--LAMAR_MEDIA_CORP/DE

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{debt, indebtedness, cash}
{cost, contract, operation}
{operation, natural, condition}
{tax, income, asset}
{stock, price, operating}
{product, market, service}
{regulation, change, law}
{condition, economic, financial}
{cost, operation, labor}
Restrictions in the Company s and Lamar Media s debt agreements reduce operating flexibility and contain covenants and restrictions that create the potential for defaults, which could adversely affect the Company s business, financial condition and financial results. Lamar Advertising Company has issued and outstanding $287.5 million in aggregate principal amount of 2 7/8% convertible notes due December 2010. Lamar Advertising must pay the principal on these notes at maturity, which may be funded through a combination of distributions to Lamar Advertising of cash flow from operations and/or additional borrowings by Lamar Advertising or Lamar Media, all of which will be subject to limitations and restrictions contained in Lamar Media s senior credit facility and indentures. The Company s revenues are sensitive to general economic conditions and other external events beyond the Company s control. The Company could suffer losses due to asset impairment charges for goodwill and other intangible assets. The Company plans to significantly reduce its acquisition activity in 2009, which could adversely affect the Company s future financial performance. The Company faces competition from larger and more diversified outdoor advertisers and other forms of advertising that could hurt its performance. Federal, state and local regulation impact the Company s operations, financial condition and financial results. The Company s logo sign contracts are subject to state award and renewal. The Company is controlled by significant stockholders who have the power to determine the outcome of all matters submitted to the stockholders for approval and whose interest in the Company may be different than yours. If the Company s contingency plans relating to hurricanes fail, the resulting losses could hurt the Company s business.

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