899045--3/1/2007--LAMAR_ADVERTISING_CO/NEW

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{product, market, service}
{cost, contract, operation}
{acquisition, growth, future}
{condition, economic, financial}
{regulation, change, law}
The Company s revenues are sensitive to general economic conditions and other external events beyond the Company s control. The Company s continued growth through acquisitions may become more difficult, 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. We currently have two primary suppliers of the LED digital displays for our digital billboards. If they cannot meet our requirements for these displays in the future, it could adversely affect our digital deployment. 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.

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