The global outdoor market has emerged as a leading advertising medium that serves as a core branding and marketing platform for companies, both domestically and internationally. Similar to other advertising media, the key competitive factors for outdoor advertising are pricing, location and availability of displays.

According to a leading market research firm, outdoor advertising was the second fastest growing advertising medium in the United States from 2003 to 2004. It trailed only the Internet and outpaced all other media categories, including radio, newsweekly magazines, newspapers and prime time television. Outdoor advertising is also expected to outpace overall U.S. advertising growth in 2005.

According to Outdoor Advertising Association of America, OAAA, the top 10 industries using outdoor advertising, based on 2004 year-end outdoor expenditures, were: local services and amusements, media and advertising, public transportation, hotels and resorts, retail, insurance and real estate, financial, automotive dealers and services, restaurants, automotive, auto access and equipment and telecommunications.

Outdoor advertising is a low cost, high impact medium for advertisers. The average cost per thousand impressions, or CPM, of outdoor advertising is approximately one fourth that of newspapers and prime time television and one half that of radio and newsweekly magazines. The average reach of outdoor advertising is approximately twice that of radio and newsweekly magazines, four and a half times that of newspapers and five times that of prime time television.

Bulletins vary in size, with the most common size being 14 feet high by 48 feet wide. Almost all of the advertising copy displayed on bulletins is computer printed on vinyl and transported to the bulletin where it is secured to the display surface. Because of their greater size and impact, the Company typically receives its highest rates for bulletins. Bulletins generally are located along major expressways, primary commuting routes and main intersections that are highly visible and heavily trafficked.

Posters are available in two sizes, 30-sheet and eight-sheet displays. The 30-sheet posters are approximately 11 feet high by 23 feet wide, and the eight-sheet posters are approximately five feet high by 11 feet wide. Advertising copy for posters is printed using silk-screen or lithographic processes to transfer the designs onto paper that is then transported and secured to the poster surfaces. Posters generally are located in commercial areas on primary and secondary routes near point-of-purchase locations, facilitating advertising campaigns with greater demographic targeting than those displayed on bulletins.

The Company’s street furniture displays, marketed under global Adshel brand, are advertising surfaces on bus shelters, information kiosks, public toilets, freestanding units and other public structures, and primarily are located in major metropolitan cities and along major commuting routes.

The Company’s transit displays are advertising surfaces on various types of vehicles or within transit systems, including on the interior and exterior sides of buses, trains, trams and taxis and within the common areas of rail stations and airports. Similar to street furniture, contracts for the right to place the Company’s displays on such vehicles or within such transit systems and sell advertising space on them generally are awarded by public transit authorities in competitive bidding processes or are negotiated with private transit operators.

The Company’s international segment consists of advertising operations in Europe, Australia, Asia and Africa, with approximately 52% of 2004 revenues in this segment derived from France and the United Kingdom. The Company’s international display inventory consists primarily of billboards, street furniture displays and transit displays in approximately 50 countries worldwide, with billboards and street furniture displays collectively contributing approximately 77% of 2004 international revenues.

Operating expenses grew approximately $71.7 million, or 8%, to $915.7 million for the six months ended June 30, 2005 as compared to $844.0 million for the same period of 2004.

Operating income increased to $126.6 million for the six months ended June 30, 2005, compared to $98.1 million for the six months ended June 30, 2004.

Interese expense decreased slightly to $79.3 million for the six months ended June 30, 2005, compared to $80.1 million for the same period of 2004.

Net income increased to $11.6 million for the six months ended June 30, 2005, compared to $2.9 million for the six months ended June 30, 2004.