Clear Channel Outdoor Holdings (CCO)

Our Strategy

We are currently in a very challenging global economic environment, as witnessed by the declines in GDP in most locations in which we operate. With the weakening in consumer spending, many forms of media advertising have been, and continue to be, negatively impacted as companies reduce investment across the board, notably in marketing and advertising. In the face of these difficult conditions, we plan to focus on our competitive strengths to position the Company through the following strategies:

Significant Cost Reductions and Capital Discipline.    To address the softness in advertising demand resulting from the economic environment, we have taken steps to reduce our fixed costs and discretionary expenses and maximize cash flow. In the fourth quarter of 2008, we commenced a restructuring plan to reduce our cost base through renegotiations of lease agreements, workforce reductions, the elimination of overlapping functions and other cost savings initiatives and expect to realize $176 million in cost savings through 2009. In order to achieve these cost savings, we expect to incur a total of $66 million in one-time cash charges through the end of 2009, $59 million had been incurred as of September 30, 2009. In addition, we plan to refocus our capital expenditures selectively on opportunities that we expect to yield higher returns, leveraging our flexibility to make capital outlays based on the environment.

Promote Overall Outdoor Media Spending.    Outdoor advertising only represented 3% of total dollars spent on advertising in the United States in 2008. We believe we can continue to drive growth in outdoor advertising’s share of total media spending given our national scale and local reach. In both our Americas and International segments, we own and operate displays on real estate in highly trafficked areas of large markets. We believe these locations are highly attractive to advertisers, enabling them to effectively communicate with a mass audience on a local level. As audiences become increasingly fragmented and outdoor audience delivery measurement systems improve, we believe advertisers will continue to shift their budgets towards the outdoor advertising medium.

Roll Out Digital Billboards.    Digital outdoor advertising provides significant advantages over traditional outdoor media. Our electronic displays may be linked through centralized computer systems to instantaneously and simultaneously change advertising copy on a large number of displays. The ability to change copy by time-of-day and quickly change messaging based on advertisers’ needs creates additional flexibility for our customers. The advantages of digital allow us to penetrate new accounts and categories of advertisers as well as serve a broader set of needs for existing advertisers. We expect this to continue as we increase our quantity of digital inventory. We intend to have deployed a total of approximately 450 digital displays in 34 markets by the end of 2009, of which approximately 90 are in the top 20 U.S. markets.

Capitalize on International Opportunities.    We are also focused on growing our business internationally through new product offerings, optimization of our current display portfolio and selective investments targeting promising growth markets. We have continued to innovate and introduce new products, such as our SmartBike programs, in international markets based on local demands.

Our Strategy

We have made and continue to make investments in research tools that enable our clients to better understand how our displays can successfully reach their target audiences and promote their advertising campaigns. We are working closely with clients, advertising agencies and other diversified media companies to develop more sophisticated systems that will provide improved demographic measurements of outdoor advertising. We believe that these measurement systems will further enhance the attractiveness of outdoor advertising for both existing clients and new advertisers.

We intend to continue to work toward ensuring that our customers have a superior experience by leveraging our presence in each of our markets and by increasing our focus on customer satisfaction and improved measurement systems.

Finally, we aim to capitalize on advances in electronic displays, including flat screens, LCDs and LEDs, as an alternative to traditional methods of outdoor advertising. These electronic displays may be linked through centralized computer systems to instantaneously and simultaneously change static advertisements on a large number of displays. Digital outdoor advertising provides advantages to advertisers, including the flexibility to change messaging over the course of a day, the ability to quickly change messaging and the ability to enhance targeting by reaching different demographics at different times of day. Digital outdoor displays provide us with advantages, as they are operationally efficient and eliminate safety issues from manual copy changes.

Our Strategy

SIZE="2">We have made and continue to make investments in research tools that enable our clients to better understand how our displays can successfully reach their target audiences and promote their advertising campaigns. We are working closely with
clients, advertising agencies and other diversified media companies to develop more sophisticated systems that will provide improved demographic measurements of outdoor advertising. We believe that these measurement systems will further enhance the
attractiveness of outdoor advertising for both existing clients and new advertisers.

We intend to continue to work toward ensuring that
our customers have a superior experience by leveraging our presence in each of our markets and by increasing our focus on customer satisfaction and improved measurement systems.

Our Strategy

We seek to capitalize on our global outdoor network and diversified product mix to maximize revenue. In addition, by sharing best practices among our business segments, we believe we can quickly and effectively replicate our successes throughout the markets in which we operate. Our diversified product mix and long-standing presence in many of our existing markets provide us with the platform to launch new products and test new initiatives in a reliable and cost-effective manner.