##### Table of Contents





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-K







|x | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2010,

or



| ̈ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to.

Commission File Number 1-32663





CLEAR CHANNEL OUTDOOR HOLDINGS, INC.

(Exact name of registrant as specified in its charter)







|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 86-0812139                          
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.)
|                                                               | 
|200 East Basse Road San Antonio, Texas                         |  | 78209                               
|(Address of principal executive offices)                       |  | (Zip code)                          

(210)
832-3700

(Registrants telephone number, including area code)





Securities registered pursuant to Section 12(b) of the Act:



|                                               |  |                                     
|---------------------------------------------- |  | ------------------------------------
|Title of Each Class                            |  | Name of Exchange on Which Registered
|Class A Common Stock, $.01 par value per share |  | New York Stock Exchange             

Securities registered pursuant to Section 12(g) of the Act: None.





Indicate by check mark if the
registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    YES   ̈    NO  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.     YES   ̈    NO  x

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     YES  x    NO   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    YES   ̈    NO   ̈

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrants knowledge, in
definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |   |  |                           |  |  
|----------------------- |  | - |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈ |  | Accelerated filer         |  | x
|                        |  |   | 
|Non-accelerated filer   |  |  ̈ |  | Smaller reporting company |  |  ̈

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     YES   ̈    NO  x

As of
June 30, 2010, the aggregate market value of the common stock beneficially held by non-affiliates of the registrant was approximately $347.9 million based on the closing sales price of the Class A Common Stock as reported on the New York
Stock Exchange. (For purposes hereof, only directors and executive officers have been deemed affiliates).

On January 31, 2011, there
were 40,809,721 outstanding shares of Class A Common Stock, excluding 84,032 shares held in treasury, and 315,000,000 outstanding shares of Class B Common Stock.





DOCUMENTS INCORPORATED BY REFERENCE

Portions of our Definitive Proxy Statement for the 2011 Annual Meeting, expected to be filed within 120 days of our fiscal year end, are incorporated by reference into Part III.









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##### Table of Contents

CLEAR CHANNEL OUTDOOR HOLDINGS, INC.

INDEX TO FORM 10-K



|         |  |                                                                                                              |  |             |     | 
|-------- |  | ------------------------------------------------------------------------------------------------------------ |  | ----------- | --- | 
|         |  |                                                                                                              |  | Page Number |    
|PART I   |  |                                                                                                              |  |            
|         |  |                                                                                                             
|Item 1.  |  | Business                                                                                                     |  |             | 1   | 
|         |  |                                                                                                             
|Item 1A. |  | Risk Factors                                                                                                 |  |             | 12  | 
|         |  |                                                                                                             
|Item 1B. |  | Unresolved Staff Comments                                                                                    |  |             | 25  | 
|         |  |                                                                                                             
|Item 2.  |  | Properties                                                                                                   |  |             | 26  | 
|         |  |                                                                                                             
|Item 3.  |  | Legal Proceedings                                                                                            |  |             | 26  | 
|         | 
|PART II  |  |                                                                                                              |  |            
|         |  |                                                                                                             
|Item 5.  |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  |             | 29  | 
|         |  |                                                                                                             
|Item 6.  |  | Selected Financial Data                                                                                      |  |             | 31  | 
|         |  |                                                                                                             
|Item 7.  |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                        |  |             | 33  | 
|         |  |                                                                                                             
|Item 7A. |  | Quantitative and Qualitative Disclosures About Market Risk                                                   |  |             | 57  | 
|         |  |                                                                                                             
|Item 8.  |  | Financial Statements and Supplementary Data                                                                  |  |             | 58  | 
|         |  |                                                                                                             
|Item 9.  |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |  |             | 105 | 
|         |  |                                                                                                             
|Item 9A. |  | Controls and Procedures                                                                                      |  |             | 105 | 
|         |  |                                                                                                             
|Item 9B. |  | Other Information                                                                                            |  |             | 107 | 
|         | 
|PART III |  |                                                                                                              |  |            
|         |  |                                                                                                             
|Item 10. |  | Directors, Executive Officers and Corporate Governance                                                       |  |             | 108 | 
|         |  |                                                                                                             
|Item 11. |  | Executive Compensation                                                                                       |  |             | 108 | 
|         |  |                                                                                                             
|Item 12. |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |  |             | 108 | 
|         |  |                                                                                                             
|Item 13. |  | Certain Relationships and Related Transactions, and Director Independence                                    |  |             | 108 | 
|         |  |                                                                                                             
|Item 14. |  | Principal Accounting Fees and Services                                                                       |  |             | 109 | 
|         | 
|PART IV  |  |                                                                                                              |  |            
|         |  |                                                                                                             
|Item 15. |  | Exhibits and Financial Statement Schedules                                                                   |  |             | 110 | 



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##### Table of Contents

PART I

ITEM 1. Business

The Company

Clear Channel Outdoor Holdings, Inc. (the
Company), a Delaware Corporation, provides clients with advertising opportunities through billboards, street furniture displays, transit displays and other out-of-home advertising displays, such as wallscapes, spectaculars, neons and mall
displays, which we own or operate in key markets worldwide. Our business consists of two reportable operating segments: Americas and International. As of December 31, 2010, we owned or operated approximately 822,000 advertising displays
worldwide. For the year ended December 31, 2010, we generated revenue of approximately $2.8 billion, with $1.3 billion and $1.5 billion from our Americas and International segments, respectively.

Our History

We were
incorporated in August 1995 under the name Eller Media Company. In 1997, Clear Channel Communications, Inc. (Clear Channel Communications), our parent company, entered the outdoor advertising industry with its acquisition of
Eller Media Company. We changed our name to Clear Channel Outdoor Holdings, Inc. in August 2005.

On November 11, 2005,
we became a publicly traded company through an initial public offering, or IPO, in which we sold 10%, or 35.0 million shares, of our Class A common stock. Prior to our IPO, we were an indirect wholly-owned subsidiary of Clear Channel
Communications. Clear Channel Communications currently owns all of our outstanding shares of Class B common stock, representing approximately 89% of the outstanding shares of our common stock and approximately 99% of the total voting power of our
common stock.

Prior to or at the time of our IPO, we entered into agreements with Clear Channel Communications that govern
the relationship between Clear Channel Communications and us and provide for, among other things, the provision of services by Clear Channel Communications to us and the allocation of employee benefit, tax and other liabilities and obligations
attributable to our operations. These agreements include the Master Agreement, Corporate Services Agreement, Employee Matters Agreement and Tax Matters Agreement. All of the agreements relating to our ongoing relationship with Clear Channel
Communications were made in the context of a parent-subsidiary relationship and the terms of these agreements may be more or less favorable to us than if they had been negotiated with unaffiliated third parties.

Clear Channel Communications has the right to terminate these agreements in various circumstances. As of the date of the filing of this
report, no notice of termination of any of these agreements has been received from Clear Channel Communications.

As long as
Clear Channel Communications continues to own shares of our common stock representing more than 50% of the total voting power of our common stock, it will have the ability to direct the election of all members of our Board of Directors and,
therefore, to exercise a controlling influence over our business and affairs, including any determination with respect to mergers or other business combinations, our acquisition or disposition of assets, our incurrence of indebtedness, our issuance
of any additional common stock or other equity securities, our repurchase or redemption of common stock or any preferred stock, if applicable, and our payment of dividends. Similarly, Clear Channel Communications will have the power to determine or
significantly influence the outcome of matters submitted to a vote of our stockholders, including the power to prevent an acquisition or any other change in control, and to take other actions that might be favorable to Clear Channel Communications.

On July 30, 2008, Clear Channel Communications completed its merger with a subsidiary of CC Media Holdings, Inc.
(CC Media Holdings), a company formed by a group of private equity funds sponsored by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. Clear Channel Communications is now owned indirectly by CC Media Holdings.



1



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You can find more information about us at our Internet website located at
www.clearchanneloutdoor.com. Our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to those reports are available free of charge through our Internet website as soon as reasonably
practicable after we electronically file such material with, or furnish such material to, the Securities and Exchange Commission (SEC). The contents of our website are not deemed to be part of this Annual Report on Form 10-K or any of
our other filings with the SEC.

Our principal executive offices are located at 200 East Basse Road, San Antonio, Texas 78209
(telephone: 210-832-3700).

Our Business Segments

We have two reportable business segments, Americas Outdoor Advertising (Americas or Americas outdoor advertising) and International Outdoor Advertising (International
or International outdoor advertising), which represented 46% and 54% of our 2010 revenue, respectively.

We
believe we offer advertisers a diverse platform of media assets across geographies and outdoor products. We intend to continue to execute upon our long-standing outdoor advertising strategies, while closely managing expenses and focusing on
achieving operating efficiencies throughout our businesses. Within each of our operating segments, we share best practices across our markets in an attempt to replicate our successes throughout the markets in which we operate.

For more information about our revenue, gross profit and assets by segment and our revenue and long-lived assets by geographic area, see
Note 13 to our Consolidated Financial Statements located in Item 8 of Part II of this Annual Report on Form 10-K.

Americas Outdoor
Advertising

We are the largest outdoor advertising company in the Americas (based on revenue), which includes the United
States, Canada and Latin America. Approximately 89% of our 2010 revenue in our Americas segment was derived from the United States. We own or operate approximately 188,000 displays in our Americas segment and have operations in 49 of the 50 largest
markets in the United States, including all of the 20 largest markets.

Our Americas assets consist of billboards, street
furniture and transit displays, airport displays, mall displays, and wallscapes and other spectaculars, which we own or operate under lease management agreements. Our Americas advertising business is focused on urban markets with dense populations.

Strategy

We seek to capitalize on our Americas 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 in other markets in which we operate. Our outdoor strategy also focuses on leveraging our diversified product mix and long-standing presence in many of our existing markets, which provides us with the platform to
launch new products and test new initiatives in a reliable and cost-effective manner.

Drive Outdoor Media Spending.
Given the attractive industry fundamentals of outdoor media and our depth and breadth of relationships with both local and national advertisers, we believe we can drive outdoor advertisings share of total media spending by utilizing our
dedicated national sales team to highlight the value of outdoor advertising relative to other media. Outdoor advertising only represented 3% of total dollars spent on advertising in the United States in 2009. We have made and continue to make
significant 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. Also, we are working closely with clients, advertising
agencies and other diversified media companies to develop more sophisticated systems that will provide improved audience metrics for outdoor advertising. For example, we have implemented the EYES ON audience measurement system which:
(1) separately reports audiences for each of the nearly 400,000 units of inventory across the industry in the United States, (2) reports those audiences using the same demographics available and used by other media permitting reach and
frequency measures, (3) provides the same audience measures across more than 200 markets, and (4) reports which advertisement is most likely to be seen. We believe that measurement systems such as EYES ON will further enhance the
attractiveness of outdoor advertising for both existing clients and new advertisers and further foster outdoor media spending growth.



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Continue to Deploy Digital Billboards. Digital outdoor advertising provides
significant advantages over traditional outdoor media. Our electronic displays are linked through centralized computer systems to instantaneously and simultaneously change advertising copy on a large number of displays, allowing us to sell more
slots to advertisers. 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 trend to continue as we increase our quantity of digital inventory. As of December 31, 2010, we have deployed a total of 615 digital
displays in 36 markets in the United States.

Sources of Revenue

Americas generated 46%, 46% and 43% of our revenue in 2010, 2009 and 2008, respectively. Americas revenue is derived from the sale
of advertising copy placed on our display inventory. Our display inventory consists primarily of billboards, street furniture displays and transit displays. The margins on our billboard contracts tend to be higher than those on contracts for other
displays, due to their greater size, impact and location along major roadways that are highly trafficked. Billboards comprise approximately two-thirds of our display revenues. The following table shows the approximate percentage of revenue derived
from each category for our Americas advertising inventory:



|                          |  |                         |      |  |      |  |      |      |  |  |      | 
|------------------------- |  | ----------------------- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|                          |  | Year Ended December 31, |     
|                          |  | 2010                    |      |  | 2009 |  |      | 2008 | 
|Billboards                |  |                         |      |  |      |  |      |      |  |  |      | 
|Bulletins (1)             |  |                         | 54%  |  |      |  | 52%  |      |  |  | 51%  | 
|Posters                   |  |                         | 13%  |  |      |  | 14%  |      |  |  | 15%  | 
|Street furniture displays |  |                         | 6%   |  |      |  | 5%   |      |  |  | 5%   | 
|Transit displays          |  |                         | 15%  |  |      |  | 17%  |      |  |  | 17%  | 
|Other displays (2)        |  |                         | 12%  |  |      |  | 12%  |      |  |  | 12%  | 
|                          |  |                         |      |  |      |  |      |      |  |  |      | 
|Total                     |  |                         | 100% |  |      |  | 100% |      |  |  | 100% | 
|                          |  |                         |      |  |      |  |      |      |  |  |      | 



|(1) | Includes digital displays.
|--- | --------------------------



|(2) | Includes spectaculars, mall displays and wallscapes.
|--- | ----------------------------------------------------

Our Americas segment generates revenues from local, regional and national sales. Our advertising rates are based on a number of different factors including location, competition, size of display,
illumination, market and gross ratings points. Gross ratings points are the total number of impressions delivered, expressed as a percentage of a market population, of a display or group of displays. The number of impressions delivered by a display
is measured by the number of people passing the site during a defined period of time. For all of our billboards in the United States, we use independent, third-party auditing companies to verify the number of impressions delivered by a display.
Reach is the percent of a target audience exposed to an advertising message at least once during a specified period of time, typically during a period of four weeks. Frequency is the average number of exposures an individual
has to an advertising message during a specified period of time. Out-of-home frequency is typically measured over a four-week period.

While location, price and availability of displays are important competitive factors, we believe that providing quality customer service and establishing strong client relationships are also critical
components of sales. In addition, we have long-standing relationships with a diversified group of advertising brands and agencies that allow us to diversify client accounts and establish continuing revenue streams.



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Billboards

Our billboard inventory primarily includes bulletins and posters.



| |  |  | Bulletins. 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, we typically receive our highest rates for bulletins. Bulletins generally
are located along major expressways, primary commuting routes and main intersections that are highly visible and heavily trafficked. Our clients may contract for individual bulletins or a network of bulletins, meaning the clients
advertisements are rotated among bulletins to increase the reach of the campaign. Our client contracts for bulletins generally have terms ranging from four weeks to one year.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Posters. Posters are available in two sizes, 30-sheet and 8-sheet displays. The 30-sheet posters are approximately 11 feet high by 23
feet wide, and the 8-sheet posters are approximately 5 feet high by 11 feet wide. Advertising copy for 30-sheet posters is digitally printed on a single piece of polyethylene material that is then transported and secured to the poster surfaces.
Advertising copy for 8-sheet posters is printed using silk screen, lithographic or digital process 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. Our poster rates typically are less than our bulletin rates, and our client
contracts for posters generally have terms ranging from four weeks to one year. Premiere displays, which consist of premiere panels and squares, are innovative hybrids between bulletins and posters that we developed to provide our clients with an
alternative for their targeted marketing campaigns. The premiere displays utilize one or more poster panels, but with vinyl advertising stretched over the panels similar to bulletins. Our intent is to combine the creative impact of bulletins with
the additional reach and frequency of posters.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Street Furniture Displays

Our street furniture displays, marketed under our global Adshel brand, are advertising surfaces on bus shelters, information kiosks,
freestanding units and other public structures, and are primarily located in major metropolitan cities and along major commuting routes. Generally, we own the street furniture structures and are responsible for their construction and maintenance.
Contracts for the right to place our street furniture displays in the public domain and sell advertising space on them are awarded by municipal and transit authorities in competitive bidding processes governed by local law. Generally, these
contracts have terms ranging from 10 to 20 years. As compensation for the right to sell advertising space on our street furniture structures, we pay the municipality or transit authority a fee or revenue share that is either a fixed amount or a
percentage of the revenue derived from the street furniture displays. Typically, these revenue sharing arrangements include payments by us of minimum guaranteed amounts. Client contracts for street furniture displays typically have terms ranging
from four weeks to one year, and are typically for network packages.

Transit Displays

Our 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 within the common areas of rail stations and airports. Similar to street furniture, contracts for the right to place our displays on such vehicles or within such transit systems and to sell advertising
space on them generally are awarded by public transit authorities in competitive bidding processes or are negotiated with private transit operators. Generally, these contracts have terms ranging up to nine years. Our client contracts for transit
displays generally have terms ranging from four weeks to one year.



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Other Inventory

The balance of our display inventory consists of spectaculars, wallscapes and mall displays. Spectaculars are customized display structures that often incorporate video, multidimensional lettering and
figures, mechanical devices and moving parts and other embellishments to create special effects. The majority of our spectaculars are located in Times Square in New York City, Dundas Square in Toronto, Fashion Show in Las Vegas, Miracle Mile in Las
Vegas and across from the Target Center in Minneapolis. Client contracts for spectaculars typically have terms of one year or longer. A wallscape is a display that drapes over or is suspended from the sides of buildings or other structures.
Generally, wallscapes are located in high-profile areas where other types of outdoor advertising displays are limited or unavailable. Clients typically contract for individual wallscapes for extended terms. We also own displays located within the
common areas of malls on which our clients run advertising campaigns for periods ranging from four weeks to one year.

Competition

The outdoor advertising industry in the Americas is fragmented, consisting of several larger companies involved in
outdoor advertising, such as CBS and Lamar Advertising Company, as well as numerous smaller and local companies operating a limited number of display faces in a single or a few local markets. We also compete with other advertising media in our
respective markets, including broadcast and cable television, radio, print media, direct mail, the Internet and other forms of advertisement.

Outdoor companies compete primarily based on ability to reach consumers, which is driven by location of the display.

Advertising Inventory and Markets

As of December 31, 2010, we
owned or operated approximately 188,000 displays in our Americas segment. Our displays are located on owned land, leased land or land for which we have acquired permanent easements. The majority of the advertising structures on which our displays
are mounted require permits. Permits are granted for the right to operate an advertising structure as long the structure is used in compliance with the laws and regulations of the applicable jurisdiction.

The following table sets forth certain selected information with regard to our Americas advertising inventory, with
our markets listed in order of their designated market area (DMA®) region ranking (DMA® is a registered trademark of Nielsen Media Research, Inc.):



|                                    |  |                |  |                  |        | 
|----------------------------------- |  | -------------- |  | ---------------- | ------ | 
|Market                              |  | DMA®MarketRank |  | NumberofDisplays |       
|New York, NY                        |  | 1              |  |                  | 2,607  | 
|Los Angeles, CA                     |  | 2              |  |                  | 9,984  | 
|Chicago, IL                         |  | 3              |  |                  | 11,709 | 
|Philadelphia, PA                    |  | 4              |  |                  | 5,285  | 
|Dallas-Ft. Worth, TX                |  | 5              |  |                  | 17,571 | 
|San Francisco-San Jose, CA          |  | 6              |  |                  | 10,104 | 
|Boston, MA                          |  | 7              |  |                  | 2,924  | 
|Atlanta, GA                         |  | 8              |  |                  | 2,527  | 
|Washington, DC                      |  | 9              |  |                  | 3,202  | 
|Houston-Galveston, TX               |  | 10             |  |                  | 3,036  | 
|Detroit, MI                         |  | 11             |  |                  | 587    | 
|Phoenix, AZ                         |  | 12             |  |                  | 9,151  | 
|Seattle-Tacoma, WA                  |  | 13             |  |                  | 6,233  | 
|Tampa-St. Petersburg-Clearwater, FL |  | 14             |  |                  | 2,319  | 
|Minneapolis-St. Paul, MN            |  | 15             |  |                  | 1,893  | 
|Miami-Ft. Lauderdale-Hollywood, FL  |  | 16             |  |                  | 5,313  | 



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|                                        |  |                |         |  |                  |  |         | 
|--------------------------------------- |  | -------------- | ------- |  | ---------------- |  | ------- | 
|Market                                  |  | DMA®MarketRank |         |  | NumberofDisplays | 
|Denver-Boulder, CO                      |  |                | 17      |  |                  |  | 1,156   | 
|Cleveland, OH                           |  |                | 18      |  |                  |  | 3,329   | 
|Orlando, FL                             |  |                | 19      |  |                  |  | 3,765   | 
|Sacramento, CA                          |  |                | 20      |  |                  |  | 2,610   | 
|St. Louis, MO                           |  |                | 21      |  |                  |  | 323     | 
|Portland, OR                            |  |                | 22      |  |                  |  | 1,141   | 
|Charlotte-Gastonia-Rock Hill, NC-SC     |  |                | 23      |  |                  |  | 12      | 
|Pittsburgh, PA                          |  |                | 24      |  |                  |  | 93      | 
|Raleigh-Durham, NC                      |  |                | 25      |  |                  |  | 1,814   | 
|Baltimore, MD                           |  |                | 26      |  |                  |  | 1,909   | 
|Indianapolis, IN                        |  |                | 27      |  |                  |  | 3,243   | 
|San Diego, CA                           |  |                | 28      |  |                  |  | 756     | 
|Nashville, TN                           |  |                | 29      |  |                  |  | 732     | 
|Hartford-New Britain-Middletown, CT     |  |                | 30      |  |                  |  | 667     | 
|Kansas City, KS                         |  |                | 31      |  |                  |  | 1,174   | 
|Salt Lake City-Ogden-Provo, UT          |  |                | 32      |  |                  |  | 65      | 
|Cincinnati, OH                          |  |                | 33      |  |                  |  | 12      | 
|Columbus, OH                            |  |                | 34      |  |                  |  | 1,818   | 
|Milwaukee-Racine, WI                    |  |                | 35      |  |                  |  | 6,034   | 
|Greenville-Spartanburg, SC              |  |                | 36      |  |                  |  | 91      | 
|San Antonio, TX                         |  |                | 37      |  |                  |  | 6,991   | 
|West Palm Beach-Boca Raton, FL          |  |                | 38      |  |                  |  | 624     | 
|Harrisburg-Lebanon-Carlisle, PA         |  |                | 39      |  |                  |  | 176     | 
|Birmingham (Ann and Tusc)               |  |                | *       |  |                  |  | *       | 
|Grand Rapids, MI                        |  |                | 41      |  |                  |  | 290     | 
|Las Vegas, NV                           |  |                | 42      |  |                  |  | 1,176   | 
|Norfolk-Virginia Beach-Newport News, VA |  |                | 43      |  |                  |  | 379     | 
|Austin, TX                              |  |                | 44      |  |                  |  | 134     | 
|Oklahoma City, OK                       |  |                | 45      |  |                  |  | 49      | 
|Albuquerque, NM                         |  |                | 46      |  |                  |  | 1,180   | 
|Greensboro-Winston Salem-High Point, NC |  |                | 47      |  |                  |  | 751     | 
|Memphis, TN                             |  |                | 48      |  |                  |  | 1,708   | 
|Jacksonville, FL                        |  |                | 49      |  |                  |  | 956     | 
|Louisville, KY                          |  |                | 50      |  |                  |  | 159     | 
|Various U.S. Cities                     |  |                | 51-100  |  |                  |  | 14,393  | 
|Various U.S. Cities                     |  |                | 101-150 |  |                  |  | 3,890   | 
|Various U.S. Cities                     |  |                | 151-200 |  |                  |  | 2,119   | 
|Various U.S. Cities                     |  |                | 201+    |  |                  |  | 63      | 
|Non-U.S. Markets                        |  |                | N/A     |  |                  |  | 27,897  | 
|                                        |  |                |         |  |                  |  |         | 
|Total                                   |  |                |         |  |                  |  | 188,124 | 
|                                        |  |                |         |  |                  |  |         | 



|* | Represents markets where outdoor advertising is not operated.
|- | -------------------------------------------------------------



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Production

In a majority of our markets, our local production staff performs the full range of activities required to create and install advertising copy. Production work includes creating the advertising copy
design and layout, coordinating its printing and installing the copy on displays. We provide creative services to smaller advertisers and to advertisers not represented by advertising agencies. National advertisers often use preprinted designs that
require only installation. Our creative and production personnel typically develop new designs or adopt copy from other media for use on our inventory. Our creative staff also can assist in the development of marketing presentations, demonstrations
and strategies to attract new clients.

Client Categories

In 2010, the top five client categories in our Americas segment were retail, business services, banking and financial services, media and
telecommunications.

Construction and Operation

We typically own the physical structures on which our clients advertising copy is displayed. We build some of the structures at our billboard fabrication business in Illinois and erect them on sites
we either lease or own or for which we have acquired permanent easements. The site lease terms generally range from one to 20 years. In addition to the site lease, we must obtain a permit to build the sign. Permits are typically issued in perpetuity
by the state or local government and typically are transferable or renewable for a minimal, or no, fee. Bulletin and poster advertising copy is either printed with computer generated graphics on a single sheet of vinyl or placed on lithographed or
silk-screened paper sheets supplied by the advertiser. These advertisements are then transported to the site and in the case of vinyl, wrapped around the face of the site, and in the case of paper, pasted and applied like wallpaper to the site. The
operational process also includes conducting visual inspections of the inventory for display defects and taking the necessary corrective action within a reasonable period of time.

International Outdoor Advertising

Our International segment includes our
operations in Asia, Australia and Europe, with approximately 37% of our 2010 revenue in this segment derived from France and the United Kingdom. As of December 31, 2010, we owned or operated approximately 634,000 displays in 29 countries.

Our International assets consist of street furniture and transit displays, billboards, mall displays, Smartbike schemes,
wallscapes and other spectaculars, which we own or operate under lease agreements. Our International business is focused on urban markets with dense populations.

Strategy

Similar to our Americas outdoor advertising, we believe
International outdoor advertising has attractive industry fundamentals including a broad audience reach and a highly cost effective media for advertisers as measured by cost per thousand persons reached compared to other traditional media. Our
International strategy focuses on our competitive strengths to position the Company through the following strategies:

Promote Overall Outdoor Media Spending.Our strategy is to drive growth in outdoor advertisings share of total media
spending and leverage such growth with our international scale and local reach. We are focusing on developing and implementing better and improved outdoor audience delivery measurement systems to provide advertisers with tools to determine how
effectively their message is reaching the desired audience.

Capitalize on Product and Geographic Opportunities. We are
also focused on growing our business internationally by working closely with our advertising customers and agencies in meeting their needs, and 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 in international markets based on local demands. Our core business is our street furniture business and that is where we plan to focus much of our
investment. We plan to continue to evaluate municipal contracts that may come up for bid and will make prudent investments where we believe we can receive attractive returns. We will also continue to invest in markets such as China, Turkey and
Poland, where we believe there is high growth potential.



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Sources of Revenue

Our International segment generated 54%, 54% and 57% of our revenue in 2010, 2009 and 2008, respectively. International revenue is derived from the sale of advertising copy placed on our display
inventory. Our International display inventory consists primarily of billboards, street furniture displays, transit displays and other out-of-home advertising displays, such as neon displays.

The following table shows the approximate percentage of revenue derived from each inventory category of our International segment:



|                          |  |                         |      |  |      |  |      |      |  |  |      | 
|------------------------- |  | ----------------------- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|                          |  | Year Ended December 31, |     
|                          |  | 2010                    |      |  | 2009 |  |      | 2008 | 
|Billboards (1)            |  |                         | 30%  |  |      |  | 32%  |      |  |  | 35%  | 
|Street furniture displays |  |                         | 42%  |  |      |  | 40%  |      |  |  | 38%  | 
|Transit displays          |  |                         | 8%   |  |      |  | 8%   |      |  |  | 9%   | 
|Other (2)                 |  |                         | 20%  |  |      |  | 20%  |      |  |  | 18%  | 
|                          |  |                         |      |  |      |  |      |      |  |  |      | 
|Total                     |  |                         | 100% |  |      |  | 100% |      |  |  | 100% | 
|                          |  |                         |      |  |      |  |      |      |  |  |      | 



|(1) | Includes revenue from spectaculars and neon displays.
|--- | -----------------------------------------------------

|(2) | Includes advertising revenue from mall displays, other small displays, and non-advertising revenue from sales of street furniture equipment, cleaning and maintenance
services, operation of Smartbike schemes and production revenue.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our International segment generates revenues
worldwide from local, regional and national sales. Similar to the Americas, advertising rates generally are based on the gross ratings points of a display or group of displays. The number of impressions delivered by a display, in some countries, is
weighted to account for such factors as illumination, proximity to other displays and the speed and viewing angle of approaching traffic.

While location, price and availability of displays are important competitive factors, we believe that providing quality customer service and establishing strong client relationships are also critical
components of sales. Our entrepreneurial culture allows local management to operate their markets as separate profit centers, encouraging customer cultivation and service.

Billboards

The sizes of our International
billboards are not standardized. The billboards vary in both format and size across our networks, with the majority of our International billboards being similar in size to our posters used in our Americas business (30-sheet and 8-sheet displays).
Our International billboards are sold to clients as network packages with contract terms typically ranging from one to two weeks. Long-term client contracts are also available and typically have terms of up to one year. We lease the majority of our
billboard sites from private landowners. Billboards include our spectacular and neon displays. Defi Group SAS, our International neon subsidiary, is a global provider of neon signs with approximately 318 displays in more than 16 countries worldwide.
Client contracts for International neon displays typically have terms of approximately five years.

Street Furniture Displays

Our International street furniture displays are substantially similar to their Americas street furniture counterparts,
and include bus shelters, freestanding units, various types of kiosks, benches and other public structures. Internationally, contracts with municipal and transit authorities for the right to place our street furniture in the public domain and sell
advertising on such street furniture typically provide for terms ranging from 10 to 15 years. The major difference between our International and Americas street furniture businesses is in the nature of the municipal contracts. In our International
business, these contracts typically require us to provide the municipality with a broader range of urban amenities such as bus shelters with or without advertising panels, information kiosks and public wastebaskets, as well as space for the
municipality to display maps or other public information. In exchange for providing such urban amenities and display space, we are authorized to sell advertising space on certain sections of the structures we erect in the public domain. Our
International street furniture is typically sold to clients as network packages, with contract terms ranging from one to two weeks. Client contracts are also available with terms of up to one year.



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Transit Displays

Our International transit display contracts are substantially similar to their Americas transit display counterparts, and typically require us to make only a minimal initial investment and few ongoing
maintenance expenditures. Contracts with public transit authorities or private transit operators typically have terms ranging from three to seven years. Our client contracts for transit displays generally have terms ranging from one week to one
year, or longer.

Other International Inventory and Services

The balance of our revenue from our International segment consists primarily of advertising revenue from mall displays, other small
displays and non-advertising revenue from sales of street furniture equipment, cleaning and maintenance services and production revenue. Internationally, our contracts with mall operators generally have terms ranging from five to ten years and
client contracts for mall displays generally have terms ranging from one to two weeks, but are available for periods up to six months. Our International inventory includes other small displays that are counted as separate displays since they form a
substantial part of our network and International Outdoor Advertising revenue. We also have a bike rental program which provides bicycles for rent to the general public in several municipalities. In exchange for providing the bike rental program, we
generally derive revenue from advertising rights to the bikes, bike stations, additional street furniture displays, or fees from the local municipalities. Several of our International markets sell equipment or provide cleaning and maintenance
services as part of a billboard or street furniture contract with a municipality.

Competition

The international outdoor advertising industry is fragmented, consisting of several larger companies involved in outdoor advertising, such
as JC Decaux and CBS, as well as numerous smaller and local companies operating a limited number of display faces in a single or a few local markets. We also compete with other advertising media in our respective markets, including broadcast and
cable television, radio, print media, direct mail, the Internet and other forms of advertisement.

Outdoor companies compete
primarily based on ability to reach consumers, which is driven by location of the display.

Advertising Inventory and Markets

As of December 31, 2010, we owned or operated approximately 634,000 displays in our International segment. The
following table sets forth certain selected information with regard to our International advertising inventory, which are listed in descending order according to 2010 revenue contribution:



International Markets

Total  DisplaysFrance


121,902United Kingdom


56,512China


70,869Italy


52,422Australia/New Zealand


19,603Spain


33,422Sweden


106,888Switzerland


17,691Belgium


24,070Denmark


34,054Norway


23,849Turkey


15,350Ireland


9,874


International Markets

Total  DisplaysHolland


6,508Finland


14,947Poland


7,262Baltic States/Russia


14,489Singapore


3,801Romania


154Hungary


30Germany


37Austria


12Portugal


12Czech Republic


6United Arab Emirates


1Total International Displays


633,765




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Production

The majority of our International clients are advertisers targeting national audiences whose business generally is placed with us through advertising agencies. These agencies often provide our
International clients creative services to design and produce both the advertising copy and the physical printed advertisement. Advertising copy, both paper and vinyl, is shipped to centralized warehouses operated by us. The copy is then sorted and
delivered to sites where it is installed on our displays.

Client Categories

In 2010, the top five client categories in our International segment, based on International revenue derived from these categories, were
retail, food and food products, telecommunications, entertainment and automotive.

Construction and Operation

The International manufacturing process largely consists of two elements: the manufacture and installation of advertising structures and
the weekly preparation of advertising posters for distribution throughout our networks. Generally, we outsource the manufacturing of advertising structures to third parties and regularly seek competitive bids. We use a wide range of suppliers,
located in each of our markets. The design of street furniture structures (such as bus shelters, bicycle racks and kiosks) is typically done in conjunction with a third party design or architectural firm. These street furniture designs then form the
basis of a competitive bidding process to select a manufacturer. Our street furniture sites are posted by our own employees or subcontractors who also clean and maintain the sites. The decision to use our own employees or subcontractors is made on a
market-by-market basis taking into consideration the mix of products in the market and local labor costs.

Employees

As of January 21, 2011, we had approximately 2,023 domestic employees and approximately 5,247 international employees, of which
approximately 251 were employed in corporate activities. Approximately 159 of our employees in the United States and approximately 342 of our employees outside the United States are subject to collective bargaining agreements in their respective
countries. We are a party to numerous collective bargaining agreements, none of which represent a significant number of employees. We believe that our relationship with our employees is good.

Seasonality

Required information is located within Item 7 of Part II
of this Annual Report on Form 10-K.

Regulation of our Business

The outdoor advertising industry in the United States is subject to governmental regulation at the Federal, state and local levels. These
regulations may include, among others, restrictions on the construction, repair, maintenance, lighting, upgrading, height, size, spacing and location of and, in some instances, content of advertising copy being displayed on outdoor advertising
structures. In addition, the outdoor advertising industry outside of the United States is subject to certain foreign governmental regulation.

Domestically, in recent years, outdoor advertising has become the subject of targeted state and municipal taxes and fees. These laws may affect prevailing competitive conditions in our markets in a
variety of ways. Such laws may reduce our expansion opportunities or may increase or reduce competitive pressure from other members of the outdoor advertising industry. No assurance can be given that existing or future laws or regulations, and the
enforcement thereof, will not materially and adversely affect the outdoor advertising industry. However, we contest laws and regulations that we believe unlawfully restrict our constitutional or other legal rights and may adversely impact the growth
of our outdoor advertising business.

Federal law, principally the Highway Beautification Act (HBA) regulates
outdoor advertising on Federal-Aid Primary, Interstate and National Highway Systems roads within the United States (controlled roads). The HBA regulates the size and placement of billboards, requires the development of state standards,
mandates a states compliance program, promotes the expeditious removal of illegal signs and requires just compensation for takings.



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To satisfy the HBAs requirements, all states have passed billboard control statutes
and regulations that regulate, among other things, construction, repair, maintenance, lighting, height, size, spacing and the placement and permitting of outdoor advertising structures. We are not aware of any state that has passed control statutes
and regulations less restrictive than the prevailing federal requirements, including the requirement that an owner remove any non-grandfathered, non-compliant signs along the controlled roads, at the owners expense and without compensation.
Local governments generally also include billboard control as part of their zoning laws and building codes regulating those items described above and include similar provisions regarding the removal of non-grandfathered structures that do not comply
with certain of the local requirements. Some local governments have initiated code enforcement and permit reviews of billboards within their jurisdiction challenging billboards located within their jurisdiction, and in some instances we have had to
remove billboards as a result of such reviews.

As part of their billboard control laws, state and local governments regulate
the construction of new signs. Some jurisdictions prohibit new construction, some jurisdictions allow new construction only to replace existing structures and some jurisdictions allow new construction subject to the various restrictions discussed
above. In certain jurisdictions, restrictive regulations also limit our ability to relocate, rebuild, repair, maintain, upgrade, modify or replace existing legal non-conforming billboards. While these regulations set certain limits on the
construction of new outdoor advertising displays, they also benefit established companies, including us, by creating barriers to entry and by protecting the outdoor advertising industry against an oversupply of inventory.

Federal law neither requires nor prohibits the removal of existing lawful billboards, but it does mandate the payment of compensation if
a state or political subdivision compels the removal of a lawful billboard along the controlled roads. In the past, state governments have purchased and removed existing lawful billboards for beautification purposes using Federal funding for
transportation enhancement programs, and these jurisdictions may continue to do so in the future. From time to time, state and local government authorities use the power of eminent domain and amortization to remove billboards. Thus far, we have been
able to obtain satisfactory compensation for our billboards purchased or removed as a result of these types of governmental action, although there is no assurance that this will continue to be the case in the future.

Other important outdoor advertising regulations include the Intermodal Surface Transportation Efficiency Act of 1991 (currently known as
SAFETEA-LU), the Bonus Act/Bonus Program, the 1995 Scenic Byways Amendment and various increases or implementations of property taxes, billboard taxes and permit fees.

From time to time, legislation has been introduced in both the United States and foreign jurisdictions attempting to impose taxes on
revenue from outdoor advertising. Several state and local jurisdictions have already imposed such taxes as a percentage of our outdoor advertising revenue in that jurisdiction. While these taxes have not had a material impact on our business and
financial results to date, we expect state and local governments to continue to try to impose such taxes as a way of increasing revenue.

We have introduced and intend to expand the deployment of digital billboards that display static digital advertising copy from various advertisers that change up to several times per minute. We have
encountered some existing regulations that restrict or prohibit these types of digital displays. However, since digital technology for changing static copy has only recently been developed and introduced into the market on a large scale, existing
regulations that currently do not apply to digital technology by their terms could be revised to impose greater restrictions. These regulations may impose greater restrictions on digital billboards due to alleged concerns over aesthetics or driver
safety.

International regulations have a significant impact on the outdoor advertising industry and our business.
International regulation of the outdoor advertising industry can vary by municipality, region and country but generally limits the size, placement, nature and density of out-of-home displays. Other regulations may limit the subject matter and
language of out-of-home displays.



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ITEM 1A. Risk Factors

Risks Related to Our Business

Our
results have been in the past, and could be in the future, adversely affected by deteriorations in economic conditions

The risks associated with our businesses become more acute in periods of a slowing economy or recession, which may be accompanied by a
decrease in advertising. Expenditures by advertisers tend to be cyclical, reflecting economic conditions and budgeting and buying patterns. The recent global economic downturn resulted in a decline in advertising and marketing by our customers,
which resulted in a decline in advertising revenues across our businesses. This reduction in advertising revenues had an adverse effect on our revenue, profit margins, cash flow and liquidity. Although we believe that global economic conditions are
improving, if they do not continue to improve or if they deteriorate again, global economic conditions may once again adversely impact our revenue, profit margins, cash flow and liquidity. Furthermore, because a significant portion of our revenue is
derived from local advertisers, our ability to generate revenues in specific markets is directly affected by local and regional conditions, and regional economic declines also may adversely impact our results. In addition, even in the absence of a
downturn in general economic conditions, an individual business sector or market may experience a downturn, causing it to reduce its advertising expenditures, which may also adversely impact our results.

Our consolidated revenue increased $100.0 million during 2010 compared to 2009. However, primarily as a result of the recent global
economic downturn, our consolidated revenue decreased $591.3 million during 2009 compared to 2008. This decrease in 2009 was experienced by each of our segments.

We performed impairment tests on our goodwill and other intangible assets during the fourth quarter of 2010 and recorded non-cash impairment charges of $11.5 million primarily related to a specific
outdoor market for which the unfavorable impact of litigation has resulted in the impairment of certain advertising structures and declines in revenue. Additionally, we performed impairment tests in 2008 and 2009 on our indefinite-lived assets and
goodwill and, as a result of the global economic downturn and the corresponding reduction in our revenues, we recorded non-cash impairment charges of $3.2 billion and $890.7 million, respectively. Although we believe we have made reasonable
estimates and used appropriate assumptions to calculate the fair value of our billboard permits and reporting units, it is possible a material change could occur. If actual market conditions and operational performance for the respective reporting
units underlying the intangible assets were to deteriorate, or if facts and circumstances change that would more likely than not reduce the estimated fair value of the indefinite-lived assets or goodwill for these reporting units below their
adjusted carrying amounts, we may also be required to recognize additional impairment charges in future periods, which could have a material impact on our financial condition and results of operations.

To service our debt obligations and to fund capital expenditures, we will require a significant amount of cash to meet our needs, which depends on
many factors beyond our control

Our ability to service our debt obligations and to fund capital expenditures for
display construction or renovation will require a significant amount of cash, which depends on many factors beyond our control. This is subject to general economic, financial, competitive, legislative, regulatory and other factors beyond our
control, which may prevent us from securing sufficient cash to meet these needs. Our ability to make payments on and to refinance our indebtedness will also depend on our ability to generate cash in the future.

We cannot ensure that our business will generate sufficient cash flow or that future borrowings will be available to us in an amount
sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. If our future cash flow from operations, cash on hand and other capital resources are insufficient to pay our obligations as they mature or to fund our liquidity
needs, we may be forced to reduce or delay our business activities and capital expenditures, sell assets, or attempt to obtain additional equity capital or restructure or refinance all or a portion of indebtedness on or before maturity. We cannot
ensure that we will be able to refinance any of our debt on a timely basis or on satisfactory terms, if at all. In addition, the terms of our existing indebtedness and other future indebtedness may limit our ability to pursue these alternatives.



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The indentures governing Clear Channel Worldwide Holdings, Inc. $500.0 million Series A Senior Notes
and $2.0 billion Series B Senior Notes, and Clear Channel Communications Bank Credit Facility (of which the Company is a Restricted Subsidiary) and the Master Agreement with Clear Channel Communications impose restrictions on our ability to
finance operations and capital needs, make acquisitions or engage in other business activities

The indentures
governing Clear Channel Worldwide Holdings, Inc. $500.0 million Series A Senior Notes and $2.0 billion Series B Senior Notes, and Clear Channel Communications Bank Credit Facility and the Master Agreement with Clear Channel Communications
include restrictive covenants that, among other things, restrict our ability to:



| |  |  | issue any shares of capital stock or securities convertible into capital stock;
| | - |  | -------------------------------------------------------------------------------



| |  |  | incur additional indebtedness;
| | - |  | ------------------------------



| |  |  | pay dividends and make distributions;
| | - |  | -------------------------------------



| |  |  | make certain acquisitions and investments;
| | - |  | ------------------------------------------



| |  |  | repurchase our stock;
| | - |  | ---------------------



| |  |  | create liens;
| | - |  | -------------



| |  |  | enter into transactions with affiliates;
| | - |  | ----------------------------------------



| |  |  | enter into sale leaseback transactions;
| | - |  | ---------------------------------------



| |  |  | dispose of all or substantially all of our assets; and
| | - |  | ------------------------------------------------------



| |  |  | merge or consolidate.
| | - |  | ---------------------

In addition, the indentures governing the Clear Channel Worldwide Holdings, Inc. $500.0 million Series A Senior Notes and $2.0 billion Series B Senior Notes require us to make an offer to purchase the
notes upon a change in control (as defined in the indentures), and, upon asset sales, subject to certain exceptions, make an offer to purchase the notes using the amount of excess proceeds received from such asset sales. Our failure to comply with
the terms and covenants in our indebtedness could lead to a default under the terms of those documents, which would entitle the holders to accelerate the indebtedness and declare all amounts owed due and payable.

The existence of these restrictions limits our ability to finance operations and capital needs, make acquisitions or engage in other
business activities, including our ability to grow and increase our revenue or respond to competitive changes. The following is a discussion of our sources of capital:



| |  |  | Certain of our International subsidiaries may borrow against a $150.0 million sub-limit included in Clear Channel Communications $2.0 billion
revolving credit facility, to the extent Clear Channel Communications has not already borrowed against this capacity and is in compliance with its covenants under the credit facility. As of December 31, 2010, we had no outstanding borrowings
under the $150.0 million sub-limit facility as Clear Channel Communications has already borrowed against the entire capacity.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | As part of the day-to-day cash management services provided by Clear Channel Communications, we maintain accounts that represent net amounts due to or
from Clear Channel Communications, which is recorded as Due from/to Clear Channel Communications on the consolidated balance sheet. The accounts represent the net of the balances on our revolving promissory note issued by us to Clear
Channel Communications and the revolving promissory note issued by Clear Channel Communications to us, each in the face amount of $1.0 billion, or if more or less than such amount, the aggregate unpaid principal amount of all advances. Clear Channel
Communications is not required to provide us with funds to finance our working capital or other cash requirements. Our claim in relation to cash transferred from our concentration account is on an unsecured basis and is limited to the balance of the
Due from Clear Channel Communications account. If Clear Channel Communications were to become insolvent, we would be an unsecured creditor of Clear Channel Communications with respect to the revolving promissory note issued by Clear
Channel Communications to us. At December 31, 2010 and 2009, the asset recorded in Due from Clear Channel Communications on the consolidated balance sheet was $383.8 million and $123.3 million, respectively.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Downgrades in our credit ratings may adversely affect our borrowing costs, limit our financing
options, reduce our flexibility under future financings and adversely affect our liquidity, and also may adversely impact our business operations

Our and Clear Channel Communications corporate credit ratings by Standard & Poors Ratings Services and Moodys Investors Service are speculative-grade and have been downgraded
and upgraded at various times during the past several years. Any reductions in our credit ratings could increase our borrowing costs, reduce the availability of financing to us or increase the cost of doing business or otherwise negatively impact
our business operations.

Our financial performance may be adversely affected by certain variables which are not in our control

Certain variables that could adversely affect our financial performance by, among other things, leading to decreases
in overall revenues, the numbers of advertising customers, advertising fees, or profit margins include:



| |  |  | unfavorable economic conditions, both general and relative to outdoor advertising and all related industries, which may cause companies to reduce their
expenditures on advertising;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | an increased level of competition for advertising dollars, which may lead to lower advertising rates as we attempt to retain customers or which may
cause us to lose customers to our competitors who offer lower rates that we are unable or unwilling to match;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | unfavorable fluctuations in operating costs, which we may be unwilling or unable to pass through to our customers;
| | - |  | ------------------------------------------------------------------------------------------------------------------



| |  |  | technological changes and innovations that we are unable to adopt or are late in adopting that offer more attractive advertising alternatives than what
we offer, which may lead to a loss of advertising customers or to lower advertising rates;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | unfavorable shifts in population and other demographics, which may cause us to lose advertising customers as people migrate to markets where we have a
smaller presence or which may cause advertisers to be willing to pay less in advertising fees if the general population shifts into a less desirable age or geographical demographic from an advertising perspective;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | unfavorable changes in labor conditions, which may impair our ability to operate or require us to spend more to retain and attract key employees; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | changes in governmental regulations and policies and actions of regulatory bodies, including changes to restrictions on rebuilding non-conforming
structures, which could restrict the advertising media that we employ or restrict some or all of our customers that operate in regulated areas from using certain advertising media, or from advertising at all.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We face intense competition in the outdoor advertising industry

We operate in a highly competitive industry, and we may not be able to maintain or increase our current advertising and sales revenues. Our advertising properties compete for audiences and advertising
revenue with other outdoor advertising companies, as well as with other media, such as radio, newspapers, magazines, television, direct mail, satellite radio and Internet-based media, within their respective markets. Market shares are subject to
change, which could have the effect of reducing our revenue in that market. Our competitors may develop services or advertising media that are equal or superior to those we provide or that achieve greater market acceptance and brand recognition than
we achieve. It also is possible that new competitors may emerge and rapidly acquire significant market share in any of our business segments. An increased level of competition for advertising dollars may lead to lower advertising rates as we attempt
to retain customers or may cause us to lose customers to our competitors who offer lower rates that we are unable or unwilling to match.

Our business is dependent on our management team and other key individuals, many of whom are new to our company and one of whom, our Chief
Executive Officer, has announced his intention to retire

Our business is dependent upon the performance of our
management team and other key individuals. A number of these individuals, including Thomas W. Casey, our Chief Financial Officer, Scott D. Hamilton, our Chief Accounting Officer, and Robert H. Walls, Jr., our General Counsel, joined us in 2010, and
our two divisional CEOs,



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Ronald Cooper, the Chief Executive Officer of Americas, and William Eccleshare, the Chief Executive Officer of International, have joined us within the last 18 months. Although we have entered
into agreements with some of these and other individuals, we can give no assurance that all or any of our management team or key individuals will remain with us. Competition for these individuals is intense and many of our key employees are at-will
employees who are under no legal obligation to remain with us, and may decide to leave for a variety of personal or other reasons beyond our control.

In June 2010, Mark P. Mays announced his decision to retire as our Chief Executive Officer and asked the Board of Directors of CC Media Holdings, our indirect parent entity, to initiate a search for his
replacement. CC Media Holdings has been actively searching for a replacement but, to date, has not identified his successor. In January 2011, Mr. Mays informed us that he would step down as Chief Executive Officer on the earlier of the date
that his successor joins the Company or March 31, 2011.

While Mr. Mays has indicated his desire to continue to
serve as the Chairman of our Board of Directors and to remain actively involved with us in that capacity, if we are unable to identify a suitable candidate to succeed him as Chief Executive Officer, if any other senior members of our management or
key individuals decide to leave us in the future, or if we are not successful in attracting, motivating and retaining other key employees, our business could be adversely affected.

Government regulation of outdoor advertising may restrict our outdoor advertising operations

U.S. federal, state and local regulations have a significant impact on the outdoor advertising industry and our business. One of the seminal laws is the HBA, which regulates outdoor advertising on the
306,000 miles of Federal-Aid Primary, Interstate and National Highway Systems. The HBA regulates the size and location of billboards, mandates a state compliance program, requires the development of state standards, promotes the expeditious removal
of illegal signs and requires just compensation for takings. Construction, repair, maintenance, lighting, upgrading, height, size, spacing, the location and permitting of billboards and the use of new technologies for changing displays, such as
digital displays, are regulated by federal, state and local governments. From time to time, states and municipalities have prohibited or significantly limited the construction of new outdoor advertising structures. Changes in laws and regulations
affecting outdoor advertising at any level of government, including laws of the foreign jurisdictions in which we operate, could have a significant financial impact on us by requiring us to make significant expenditures or otherwise limiting or
restricting some of our operations. Due to such regulations, it has become increasingly difficult to develop new outdoor advertising locations.

From time to time, certain state and local governments and third parties have attempted to force the removal of our displays under various state and local laws, including zoning ordinances, permit
enforcement, condemnation and amortization. Amortization is the attempted forced removal of legal non-conforming billboards (billboards which conformed with applicable laws and regulations when built, but which do not conform to current laws and
regulations) or the commercial advertising placed on such billboards after a period of years. Pursuant to this concept, the governmental body asserts that just compensation is earned by continued operation of the billboard over time. Amortization is
prohibited along all controlled roads and generally prohibited along non-controlled roads. Amortization has, however, been upheld along non-controlled roads in limited instances where provided by state and local law. Other regulations limit our
ability to rebuild, replace, repair, maintain and upgrade non-conforming displays. In addition, from time to time third parties or local governments assert that we own or operate displays that either are not properly permitted or otherwise are not
in strict compliance with applicable law. For example, recent court rulings have upheld regulations in the City of New York that have impacted our displays in certain areas within the city. Although the number of our billboards from which we have
been required to remove commercial advertising as a result of these regulations is immaterial, from time to time in the future we may be required to remove billboards for alleged noncompliance with regulations. Such regulations and allegations have
not had a material impact on our results of operations to date, but if we are increasingly unable to resolve such allegations or obtain acceptable arrangements in circumstances in which our displays are subject to removal, modification or
amortization, or if there occurs an increase in such regulations or their enforcement, our operating results could suffer.



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A number of state and local governments have implemented or initiated legislative billboard
controls, including taxes, fees and registration requirements in an effort to decrease or restrict the number of outdoor signs and/or to raise revenue. In addition, a number of jurisdictions, including the City of Los Angeles, have implemented
legislation or interpreted existing legislation to restrict or prohibit the installation of new digital billboards. While these controls have not had a material impact on our business and financial results to date, we expect states and local
governments to continue these efforts. The increased imposition of these controls and our inability to overcome any such regulations could reduce our operating income if those outcomes require removal or restrictions on the use of preexisting
displays. In addition, if we are unable to pass on the cost of these items to our clients, our operating income could be adversely affected.

International regulation of the outdoor advertising industry varies by region and country, but generally limits the size, placement, nature and density of out-of-home displays. Other regulations limit the
subject matter and language of out-of-home displays. For instance, the United States and most European Union countries, among other nations, have banned outdoor advertisements for tobacco products. Our failure to comply with these or any future
international regulations could have an adverse impact on the effectiveness of our displays or their attractiveness to clients as an advertising medium and may require us to make significant expenditures to ensure compliance. As a result, we may
experience a significant impact on our operations, revenue, international client base and overall financial condition.

Additional
restrictions on outdoor advertising of tobacco, alcohol and other products may further restrict the categories of clients that can advertise using our products

Out-of-court settlements between the major U.S. tobacco companies and all 50 states, the District of Columbia, the Commonwealth of Puerto Rico and four other U.S. territories include a ban on the outdoor
advertising of tobacco products. Other products and services may be targeted in the future, including alcohol products. Legislation regulating tobacco and alcohol advertising has also been introduced in a number of European countries in which we
conduct business and could have a similar impact. Any significant reduction in alcohol-related advertising due to content-related restrictions could cause a reduction in our direct revenues from such advertisements and an increase in the available
space on the existing inventory of billboards in the outdoor advertising industry.

Environmental, health, safety and land use laws and
regulations may limit or restrict some of our operations

As the owner or operator of various real properties and
facilities, we must comply with various foreign, federal, state and local environmental, health, safety and land use laws and regulations. We and our properties are subject to such laws and regulations relating to the use, storage, disposal,
emission and release of hazardous and non-hazardous substances and employee health and safety as well as zoning restrictions. Historically, we have not incurred significant expenditures to comply with these laws. However, additional laws which may
be passed in the future, or a finding of a violation of or liability under existing laws, could require us to make significant expenditures and otherwise limit or restrict some of our operations.

Doing business in foreign countries exposes us to certain risks not found when doing business in the United States

Doing business in foreign countries carries with it certain risks that are not found when doing business in the United States. The risks
of doing business in foreign countries that could result in losses against which we are not insured include:



| |  |  | exposure to local economic conditions;
| | - |  | --------------------------------------



| |  |  | potential adverse changes in the diplomatic relations of foreign countries with the United States;
| | - |  | --------------------------------------------------------------------------------------------------



| |  |  | hostility from local populations;
| | - |  | ---------------------------------



| |  |  | the adverse effect of foreign exchange controls;
| | - |  | ------------------------------------------------



| |  |  | government policies against businesses owned by foreigners;
| | - |  | -----------------------------------------------------------



| |  |  | investment restrictions or requirements;
| | - |  | ----------------------------------------



| |  |  | expropriations of property;
| | - |  | ---------------------------



| |  |  | the potential instability of foreign governments;
| | - |  | -------------------------------------------------



| |  |  | the risk of insurrections;
| | - |  | --------------------------



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| |  |  | risks of renegotiation or modification of existing agreements with governmental authorities;
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | difficulties collecting receivables and otherwise enforcing contracts with governmental agencies and others in some foreign legal systems;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | withholding and other taxes on remittances and other payments by subsidiaries;
| | - |  | ------------------------------------------------------------------------------



| |  |  | changes in tax structure and level; and
| | - |  | ---------------------------------------



| |  |  | changes in laws or regulations or the interpretation or application of laws or regulations.
| | - |  | -------------------------------------------------------------------------------------------

In addition, because we own assets in foreign countries and derive revenues from our International operations, we may incur currency
translation losses due to changes in the values of foreign currencies and in the value of the U.S. dollar. We cannot predict the effect of exchange rate fluctuations upon future operating results.

Our international operations involve contracts with, and regulation by, foreign governments. We operate in many parts of the world that
experience government corruption to some degree. Although we have policies and procedures in place that are designed to promote legal and regulatory compliance (including with respect to the U.S. Foreign Corrupt Practices Act and the United Kingdom
Bribery Act 2010), our employees, subcontractors and agents could take actions that violate applicable anticorruption laws or regulations. Violations of these laws, or allegations of such violations, could have a material adverse effect on our
business, financial position and results of operations.

The success of our street furniture and transit products is dependent on our
obtaining key municipal concessions, which we may not be able to obtain on favorable terms

Our street furniture and
transit products businesses require us to obtain and renew contracts with municipalities and other governmental entities. Many of these contracts, which require us to participate in competitive bidding processes at each renewal, typically have terms
ranging from three to 20 years and have revenue share and/or fixed payment components. Our inability to successfully negotiate, renew or complete these contracts due to governmental demands and delay and the highly competitive bidding processes for
these contracts could affect our ability to offer these products to our clients, or to offer them to our clients at rates that are competitive to other forms of advertising, without adversely affecting our financial results.

Future acquisitions and other strategic transactions could pose risks

We frequently evaluate strategic opportunities both within and outside our existing lines of business. We expect from time to time to
pursue additional acquisitions and may decide to dispose of certain businesses. These acquisitions or dispositions could be material. Our acquisition strategy involves numerous risks, including:



| |  |  | certain of our acquisitions may prove unprofitable and fail to generate anticipated cash flows;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | to successfully manage our large portfolio of outdoor advertising and other properties, we may need to:
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | recruit additional senior management as we cannot be assured that senior management of acquired companies will continue to work for us and we cannot be
certain that any of our recruiting efforts will succeed, and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | expand corporate infrastructure to facilitate the integration of our operations with those of acquired properties, because failure to do so may cause
us to lose the benefits of any expansion that we decide to undertake by leading to disruptions in our ongoing businesses or by distracting our management;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may enter into markets and geographic areas where we have limited or no experience;
| | - |  | --------------------------------------------------------------------------------------



| |  |  | we may encounter difficulties in the integration of operations and systems;
| | - |  | ---------------------------------------------------------------------------



| |  |  | our managements attention may be diverted from other business concerns; and
| | - |  | ----------------------------------------------------------------------------



| |  |  | we may lose key employees of acquired companies.
| | - |  | ------------------------------------------------

Additional acquisitions by us may require antitrust review by federal antitrust agencies and may require review by foreign antitrust agencies under the antitrust laws of foreign jurisdictions. We can give
no assurances the U.S. Department of Justice (DOJ), the Federal Trade Commission or foreign antitrust agencies will not seek to bar



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us from acquiring additional outdoor advertising properties in any market where we already have a significant position. The DOJ actively reviews proposed acquisitions of outdoor advertising
properties. In addition, the antitrust laws of foreign jurisdictions will apply if we acquire international outdoor advertising properties.

Our cost savings initiatives may not be entirely successful

In the fourth quarter of 2008, CC Media Holdings initiated a restructuring program targeting a reduction in fixed costs through renegotiations of lease agreements, workforce reductions, the elimination of
overlapping functions and other cost savings initiatives. We incurred restructuring and other expenses under the program, and have incurred additional such expenses during 2010. We may incur additional expenses through ongoing cost-saving
initiatives in the future. No assurance can be given that anticipated cost savings will be achieved in the timeframe expected or at all, or for how long any cost savings will persist.

Risks Related to Our Relationship with Clear Channel Communications

Because Clear
Channel Communications controls substantially all of the total voting power of our common stock, investors will not be able to affect the outcome of any stockholder vote

As of December 31, 2010, Clear Channel Communications indirectly owned all of our outstanding shares of Class B common stock,
representing approximately 89% of the outstanding shares of our common stock. Each share of our Class B common stock entitles its holder to 20 votes and each share of our Class A common stock entitles its holder to one vote on all matters on
which stockholders are entitled to vote. As a result, Clear Channel Communications controlled approximately 99% of the total voting power of our common stock.

As long as Clear Channel Communications continues to own shares of our common stock representing more than 50% of the total voting power of our common stock, it will have the ability to direct the
election of all members of our Board of Directors and, therefore, to exercise a controlling influence over our business and affairs, including any determinations with respect to mergers or other business combinations, our acquisition or disposition
of assets, our incurrence of indebtedness, our issuance of any additional common stock or other equity securities, our repurchase or redemption of common stock or preferred stock, if applicable, and our payment of dividends. Similarly, Clear Channel
Communications will have the power to determine or significantly influence the outcome of matters submitted to a vote of our stockholders, including the power to prevent an acquisition or any other change in control. Because Clear Channel
Communications interests as our controlling stockholder may differ from other stockholders interests, actions taken by Clear Channel Communications with respect to us may not be favorable to all stockholders.

We have entered into agreements with Clear Channel Communications that impose obligations on us with respect to cash management and other corporate
services, financing activities, acquisitions and other business activities

We have entered into a Master Agreement, a
Corporate Services Agreement, a Tax Matters Agreement, a Trademark License Agreement and a number of other agreements with Clear Channel Communications setting forth various matters governing our relationship with Clear Channel Communications while
it remains a significant stockholder in us. These agreements govern our relationship with Clear Channel Communications and allow Clear Channel Communications to retain control over many aspects of our operations. We are not able to terminate these
agreements or amend them in a manner we deem more favorable so long as Clear Channel Communications continues to own shares of our common stock representing more than 50% of the total voting power of our common stock.

Pursuant to the Corporate Services Agreement, we are obligated to use various corporate services provided by Clear Channel Communications
and its affiliates, including treasury, payroll and other financial services, executive officer services, human resources and employee benefit services, legal services, information systems and network services and procurement and sourcing support.
Also pursuant to the Corporate Services Agreement, substantially all of the cash generated from our domestic Americas operations is transferred daily into accounts of Clear Channel Communications (after satisfying the funding requirements of the
trustee account under the senior notes issued in December 2009 by Clear Channel Worldwide Holdings, Inc., an indirect, wholly-owned subsidiary



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of ours), where funds of ours and of Clear Channel Communications may be commingled. We do not have a commitment from Clear Channel Communications to advance funds to us, and we have no access to
the cash transferred from us to Clear Channel Communications. Net amounts owed are evidenced by revolving promissory notes. If Clear Channel Communications were to become insolvent, we would be an unsecured creditor of Clear Channel Communications.
In such event, we would be treated the same as other unsecured creditors of Clear Channel Communications and, if we were not entitled to the cash previously transferred to Clear Channel Communications, or could not obtain such cash on a timely
basis, we could experience a liquidity shortfall.

In addition, the Master Agreement includes restrictive covenants that,
among other things, restrict our ability to:



| |  |  | issue any shares of capital stock or securities convertible into capital stock;
| | - |  | -------------------------------------------------------------------------------



| |  |  | incur additional indebtedness;
| | - |  | ------------------------------



| |  |  | make certain acquisitions and investments;
| | - |  | ------------------------------------------



| |  |  | repurchase our stock;
| | - |  | ---------------------



| |  |  | dispose of certain assets; and
| | - |  | ------------------------------



| |  |  | merger or consolidate.
| | - |  | ----------------------

The rights of Clear Channel Communications under these agreements may allow Clear Channel Communications to delay or prevent an acquisition of us that our other stockholders may consider favorable. In
addition, the restrictions contained in these agreements limit our ability to finance operations and capital needs, make acquisitions or engage in other business activities, including our ability to grow and increase our revenue or respond to
competitive changes.

The terms of our arrangements with Clear Channel Communications may be more favorable than we would be able to
obtain from an unaffiliated third party, and we may be unable to replace the services Clear Channel Communications provides us in a timely manner or on comparable terms

We negotiated our arrangements with Clear Channel Communications in the context of a parent-subsidiary relationship prior to the initial
public offering of our Class A common stock. Although Clear Channel Communications is contractually obligated to provide us with services during the term of the Corporate Services Agreement, we cannot assure you these services will be sustained
at an appropriate level, or that we will be able to replace these services in a timely manner or on comparable terms. In addition, we cannot provide assurance that the amount we pay Clear Channel Communications for the services will be as favorable
to us as that which may be available for comparable services provided by unrelated third parties. Other agreements with Clear Channel Communications also govern our relationship with Clear Channel Communications and provide for the allocation of
employee benefit, tax and other liabilities and obligations attributable to our operations. The agreements also contain terms and provisions that may be more favorable than terms and provisions we might have obtained in arms length
negotiations with unaffiliated third parties. If Clear Channel Communications ceases to provide services to us pursuant to those agreements, our costs of procuring those services from third parties may increase.

Conflicts of interest may arise between Clear Channel Communications and us that could be resolved in a manner unfavorable to us

Questions relating to conflicts of interest may arise between Clear Channel Communications and us in a number of
areas relating to our past and ongoing relationships. Clear Channel Communications is owned indirectly by CC Media Holdings. Three of our directors serve as directors of CC Media Holdings. Three of our other directors are affiliated with CC Media
Holdings and its stockholders. In addition, four of our executive officers serve as executive officers of CC Media Holdings.



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Areas in which conflicts of interest between Clear Channel Communications and us could arise
include, but are not limited to, the following:



| |  |  | Cross officerships, directorships and stock ownership. The ownership interests of our directors or executive officers in the common stock of CC
Media Holdings or service as a director or officer of both CC Media Holdings and us could create, or appear to create, conflicts of interest when directors and executive officers are faced with decisions that could have different implications for
the two companies. For example, these decisions could relate to: (i) the nature, quality and cost of services rendered to us by Clear Channel Communications; (ii) disagreement over the desirability of a potential acquisition opportunity;
(iii) employee retention or recruiting; or (iv) our dividend policy.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Intercompany transactions.From time to time, Clear Channel Communications or its affiliates may enter into transactions with us or our
subsidiaries or other affiliates. Although the terms of any such transactions will be established based upon negotiations between employees of Clear Channel Communications and us and, when appropriate, subject to the approval of the independent
directors on our Board or a committee of disinterested directors, there can be no assurance the terms of any such transactions will be as favorable to us or our subsidiaries or affiliates as may otherwise be obtained in arms length
negotiations.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Intercompany agreements. We have entered into certain agreements with Clear Channel Communications pursuant to which it provides us certain
management, administrative, accounting, tax, legal and other services, for which we reimburse Clear Channel Communications on a cost basis. In addition, we entered into a number of intercompany agreements covering matters such as tax sharing and our
responsibility for certain liabilities previously undertaken by Clear Channel Communications for certain of our businesses. Pursuant to the Corporate Services Agreement between Clear Channel Communications and us, we are contractually obligated to
utilize the services of the chief executive officer of Clear Channel Communications as our Chief Executive Officer and the Chief Financial Officer of Clear Channel Communications as our Chief Financial Officer until Clear Channel Communications owns
shares of our common stock representing less than 50% of the total voting power of our common stock, or we provide Clear Channel Communications with six months prior written notice of termination. The terms of these agreements were established while
we were a wholly owned subsidiary of Clear Channel Communications and were not the result of arms length negotiations. In addition, conflicts could arise in the interpretation or any extension or renegotiation of these existing agreements.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

If Clear Channel Communications engages in the same type of business we conduct or takes advantage of business
opportunities that might be attractive to us, our ability to successfully operate and expand our business may be hampered

Our amended and restated certificate of incorporation provides that, subject to any contractual provision to the contrary, Clear Channel Communications will have no obligation to refrain from:



| |  |  | engaging in the same or similar business activities or lines of business as us; or
| | - |  | ----------------------------------------------------------------------------------



| |  |  | doing business with any of our clients, customers or vendors.
| | - |  | -------------------------------------------------------------

In addition, the corporate opportunity policy set forth in our amended and restated certificate of incorporation addresses potential
conflicts of interest between our company, on the one hand, and Clear Channel Communications or CC Media Holdings and its officers and directors who are officers or directors of our company, on the other hand. The policy provides that if Clear
Channel Communications or CC Media Holdings acquires knowledge of a potential transaction or matter which may be a corporate opportunity for both Clear Channel Communications and us, we will have renounced our interest in the corporate opportunity.
It also provides that if one of our directors or officers who is also a director or officer of Clear Channel Communications or CC Media Holdings learns of a potential transaction or matter that may be a corporate opportunity for both Clear Channel
Communications and us, we will have renounced our interest in the corporate opportunity, unless that opportunity is expressly offered to that person in writing solely in his or her capacity as our director or officer.

If one of our officers or directors, who also serves as a director or officer of Clear Channel Communications or CC Media Holdings,
learns of a potential transaction or matter that may be a corporate opportunity for both Clear Channel Communications and us, our amended and restated certificate of incorporation provides that the director or officer will have no duty to
communicate or present that corporate opportunity to us and will not be liable to us or our stockholders for breach of fiduciary duty by reason of Clear Channel Communications actions with respect to that corporate opportunity.



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This policy could result in Clear Channel Communications having rights to corporate
opportunities in which both we and Clear Channel Communications have an interest.

We are a controlled company within the
meaning of the New York Stock Exchange (NYSE) rules and, as a result, qualify for, and intend to rely on, exemptions from certain corporate governance requirements that may not provide as many protections as those afforded to
stockholders of other companies

Clear Channel Communications owns shares of our common stock representing more than
50% of the total voting power of our common stock, and we are a controlled company under the NYSE corporate governance standards. As a controlled company, we may elect to use certain exemptions under the NYSE standards that free us from
the obligation to comply with certain NYSE corporate governance requirements, including the requirements: (i) that a majority of the Board of Directors consists of independent directors; (ii) that we have a Nominating and Governance
Committee composed entirely of independent directors and governed by a written charter addressing the Committees purpose and responsibilities; (iii) that we have a Compensation Committee composed entirely of independent directors with a
written charter addressing the Committees purpose and responsibilities; and (iv) for an annual performance evaluation of the Compensation Committee. We intend to continue to utilize certain of these exemptions and, as a result, we may not
create or maintain a Nominating and Governance Committee, and the Nominating and Governance Committee, if created, and the Compensation Committee may not consist entirely of independent directors, and our Board of Directors may not consist of a
majority of independent directors. Accordingly, you may not have the same protections afforded to stockholders of companies that are subject to all of the NYSE corporate governance requirements.

We do not have control over our tax decisions and could be liable for income taxes owed by Clear Channel Communications

As long as Clear Channel Communications continues to own shares of our common stock representing at least 80% of the total voting power
and value of our common stock, we and certain of our subsidiaries will be included in Clear Channel Communications consolidated group for U.S. federal income tax purposes for all pre-merger periods and CC Media Holdings consolidated
group for post-merger periods. In addition, we or one or more of our subsidiaries may be included in the combined, consolidated or unitary tax returns of Clear Channel Communications for pre-merger periods and CC Media Holdings for post-merger
periods or one or more of its subsidiaries for foreign, state and local income tax purposes. Under the Tax Matters Agreement, we pay to Clear Channel Communications the amount of federal, foreign, state and local income taxes that we would be
required to pay to the relevant taxing authorities if we and our subsidiaries filed combined, consolidated or unitary tax returns and were not included in the consolidated, combined or unitary tax returns of Clear Channel Communications or its
subsidiaries. In addition, by virtue of its controlling ownership and the Tax Matters Agreement, Clear Channel Communications effectively controls all of our tax decisions. The Tax Matters Agreement provides that Clear Channel Communications has the
sole authority to respond to and conduct all tax proceedings (including tax audits) relating to us, to file all income tax returns on our behalf and to determine the amount of our liability to (or entitlement to payment from) Clear Channel
Communications under the Tax Matters Agreement. This arrangement may result in conflicts of interest between Clear Channel Communications and us. For example, under the Tax Matters Agreement, Clear Channel Communications is able to choose to
contest, compromise, or settle any adjustment or deficiency proposed by the relevant taxing authority in a manner that may be beneficial to Clear Channel Communications and detrimental to us.

Moreover, notwithstanding the Tax Matters Agreement, federal law provides that each member of a consolidated group is liable for the
groups entire tax obligation. Thus, to the extent Clear Channel Communications or other members of the group fail to make any United States federal income tax payments required by law, we would be liable for the shortfall. Similar
principles may apply for foreign, state and local income tax purposes where we file combined, consolidated or unitary returns with Clear Channel Communications or its subsidiaries for federal, foreign, state and local income tax purposes.



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If Clear Channel Communications spins off our Class B common stock to the CC Media Holdings
stockholders, we have agreed in the Tax Matters Agreement to indemnify Clear Channel Communications for its tax-related liabilities in certain circumstances

If Clear Channel Communications spins off our Class B common stock to the CC Media Holdings stockholders in a distribution intended to be tax-free under Section 355 of the Internal Revenue Code
of 1986, as amended, which we refer to herein as the Code, we have agreed in the Tax Matters Agreement to indemnify Clear Channel Communications and its affiliates against any and all tax-related liabilities if such a spin-off fails to qualify as a
tax-free distribution (including as a result of Section 355(e) of the Code) due to actions, events or transactions relating to our stock, assets or business, or a breach of the relevant representations or covenants made by us in the Tax Matters
Agreement. If neither we nor Clear Channel Communications is responsible under the Tax Matters Agreement for any such spin-off not being tax-free under Section 355 of the Code, we and Clear Channel Communications have agreed to each be
responsible for 50% of the tax-related liabilities arising from the failure of such a spin-off to so qualify.

Any deterioration in the
financial condition of Clear Channel Communications could adversely affect our access to the credit markets and increase our borrowing costs

As long as Clear Channel Communications maintains significant control over us, a deterioration in the financial condition of Clear Channel Communications could have the effect of increasing our borrowing
costs or impairing our access to the capital markets because of our reliance on Clear Channel Communications for availability under our Due from Clear Channel Communications account and its revolving credit facility. To the extent we do
not pass on our increased borrowing costs to our clients, our profitability, and potentially our ability to raise capital, could be materially affected. Also, until the first date Clear Channel Communications owns shares of our common stock
representing less than 50% of the total voting power of our common stock, pursuant to the Master Agreement between us and Clear Channel Communications, Clear Channel Communications will have the ability to limit our ability to incur debt or issue
equity securities, among other limitations, which could adversely affect our ability to meet our liquidity needs or to grow our business.

Risks Related to Our Class A Common Stock

Our stock ownership by Clear Channel Communications, provisions in our agreements with Clear Channel Communications and our corporate governance documents and Delaware law may delay or prevent an
acquisition of us that our other stockholders may consider favorable, which could decrease the value of your shares of Class A common stock

As long as Clear Channel Communications continues to own shares of our common stock representing more than 50% of the total voting power of our common stock, it will have the ability to control decisions
regarding an acquisition of us by a third party. As a controlled company, we are exempt from some of the corporate governance requirements of the NYSE, including the requirement that our Board of Directors be comprised of a majority of independent
directors. In addition, our amended and restated certificate of incorporation, bylaws and Delaware law contain provisions that could make it more difficult for a third party to acquire us without the consent of our Board of Directors. These
provisions include restrictions on the ability of our stockholders to remove directors, supermajority voting requirements for stockholders to amend our organizational documents, restrictions on a classified board of directors and limitations on
action by our stockholders by written consent. Some of these provisions, such as the limitation on stockholder action by written consent, only become effective once Clear Channel Communications no longer controls us. In addition, our Board of
Directors has the right to issue preferred stock without stockholder approval, which could be used to dilute the stock ownership of a potential hostile acquirer. Delaware law also imposes certain restrictions on mergers and other business
combinations between any holder of 15% or more of our outstanding voting stock. These restrictions under Delaware law do not apply to Clear Channel Communications while it retains at least 15% or more of our Class B common stock. Although we
believe these provisions protect our stockholders from coercive or otherwise unfair takeover tactics and thereby provide for an opportunity to receive a higher bid by requiring potential acquirers to negotiate with our Board of Directors, these
provisions apply even if the offer may be considered beneficial by some stockholders.



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If Clear Channel Communications spins off our Class B common stock to the CC Media Holdings
stockholders and such shares do not convert into Class A common stock upon a sale or other transfer subsequent to such distribution, the voting rights of our Class A common stock will continue to be disproportionately lower than the voting
rights of our Class B common stock

In connection with any distribution of shares of our Class B common
stock to CC Media Holdings common stockholders in a spin-off, Clear Channel Communications may elect in its sole discretion whether our Class B common stock so distributed will automatically convert into shares of Class A common
stock upon a transfer or sale by the recipient subsequent to the spin-off or whether the Class B common stock will continue as Class B common stock after the distribution. In the event the Class B common stock does not convert into
Class A common stock upon a sale or transfer subsequent to a spin-off, the voting rights of Class A common stock will continue to be disproportionately lower than the voting rights of our Class B common stock. Therefore, the holders
of our Class B common stock will continue to be able to direct the election of all the members of our Board of Directors and exercise a controlling influence over our business and affairs.

Future sales or distributions of our shares by Clear Channel Communications could depress the market price for shares of our Class A common
stock

Clear Channel Communications may sell all or part of the shares of our common stock it owns or distribute those
shares to the CC Media Holdings stockholders, including pursuant to demand registration rights described in the Registration Rights Agreement between us and Clear Channel Communications. Sales or distributions by Clear Channel Communications of
substantial amounts of our common stock in the public market or to the CC Media Holdings stockholders could adversely affect prevailing market prices for our Class A common stock. Clear Channel Communications has advised us it currently intends
to continue to hold all of our common stock it owns. However, Clear Channel Communications is not subject to any contractual obligation that would prohibit it from selling, spinning off, splitting off or otherwise disposing of any shares of our
common stock. Consequently, we cannot assure you Clear Channel Communications will maintain its ownership of our common stock.

We
currently do not pay dividends on our Class A common stock

To date, we have never paid dividends on our
Class A common stock and are subject to restrictions on our ability to pay dividends should we seek to do so in the future. We are a holding company with no independent operations and no significant assets other than the stock of our
subsidiaries. We therefore are dependent upon the receipt of dividends or other distributions from our subsidiaries to pay dividends. In addition, our senior notes contain restrictions on our ability to pay dividends. If we elect not to pay
dividends in the future or are prevented from doing so, the price of our Class A common stock must appreciate in order to realize a gain on your investment. This appreciation may not occur.

Risks Related to Our Indebtedness

We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations
under our indebtedness, which may not be successful

We have a substantial amount of indebtedness. This large amount
of indebtedness could have negative consequences for us, including, without limitation:



| |  |  | dedicating a substantial portion of our cash flow to the payment of principal and interest on indebtedness, thereby reducing cash available for other
purposes, including to fund operations and capital expenditures, invest in new technology and pursue other business opportunities;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | limiting our liquidity and operational flexibility and limiting our ability to obtain additional financing for working capital, capital expenditures,
debt service requirements, acquisitions and general corporate or other purposes;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | limiting our ability to adjust to changing economic, business and competitive conditions;
| | - |  | -----------------------------------------------------------------------------------------



| |  |  | requiring us to defer planned capital expenditures, reduce discretionary spending, sell assets, restructure existing indebtedness or defer acquisitions
or other strategic opportunities;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | limiting our ability to refinance any of our indebtedness or increasing the cost of any such financing in any downturn in our operating performance or
decline in general economic conditions;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | making us more vulnerable to an increase in interest rates, a downturn in our operating performance or a decline in general economic conditions; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | making us more susceptible to changes in credit ratings, which could impact our ability to obtain financing in the future and increase the cost of such
financing.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

If compliance with our debt obligations materially hinders our ability to operate our business
and adapt to changing industry conditions, we may lose market share, our revenue may decline and our operating results may suffer.

Our ability to make scheduled payments on our debt obligations depends on our financial condition and operating performance, which is subject to prevailing economic and competitive conditions and to
certain financial, business and other factors beyond our control. We may not be able to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness.

If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or
delay capital expenditures, sell assets or operations, seek additional capital or restructure or refinance our indebtedness. We may not be able to take any of these actions, and these actions may not be successful or permit us to meet our scheduled
debt service obligations. Furthermore, these actions may not be permitted under the terms of our existing or future debt agreements.

Our ability to restructure or refinance our debt will depend on the condition of the capital markets and our financial condition at such time. Any refinancing of our debt could be at higher
interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. The terms of existing or future debt instruments may restrict us from adopting some of these alternatives. These
alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations. If we cannot make scheduled payments on our indebtedness we will be in default under one or more of our debt agreements and, as a result
we could be forced into bankruptcy or liquidation.

Because we derive a substantial portion of operating income from our
subsidiaries, our ability to repay our debt depends upon the performance of our subsidiaries and their ability to dividend or distribute funds to us

We derive a substantial portion of operating income from our subsidiaries. As a result, our cash flow and the ability to service our indebtedness depend on the performance of our subsidiaries and the
ability of those entities to distribute funds to us. We cannot assure you that our subsidiaries will be able to, or be permitted to, pay to us the amounts necessary to service our debt.

The documents governing our indebtedness contain restrictions that limit our flexibility in operating our business

Our material financing agreements contain various covenants restricting, among other things, our ability to:



| |  |  | make acquisitions or investments;
| | - |  | ---------------------------------



| |  |  | make loans or otherwise extend credit to others;
| | - |  | ------------------------------------------------



| |  |  | incur indebtedness or issue shares or guarantees;
| | - |  | -------------------------------------------------



| |  |  | create security;
| | - |  | ----------------



| |  |  | sell, lease, transfer or dispose of assets;
| | - |  | -------------------------------------------



| |  |  | merge or consolidate with other companies; and
| | - |  | ----------------------------------------------



| |  |  | make a substantial change to the general nature of our business.
| | - |  | ----------------------------------------------------------------

These restrictions could affect our ability to operate our business and may limit our ability to react to market conditions or take
advantage of potential business opportunities as they arise. For example, such restrictions could adversely affect our ability to finance our operations, make strategic acquisitions, investments or alliances, restructure our organization or finance
our capital needs. Additionally, our ability to comply with these covenants and restrictions may be affected by events beyond our control. These include prevailing economic, financial and industry conditions. If we breach any of these covenants or
restrictions, we could be in default under the agreements governing our indebtedness, and as a result we would be forced into bankruptcy or liquidation.



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Cautionary Statement Concerning Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf.
Except for the historical information, this report contains various forward-looking statements which represent our expectations or beliefs concerning future events, including, without limitation, our future operating and financial performance and
availability of capital and the terms thereof. Statements expressing expectations and projections with respect to future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We caution
that these forward-looking statements involve a number of risks and uncertainties and are subject to many variables which could impact our future performance. These statements are made on the basis of managements views and assumptions, as of
the time the statements are made, regarding future events and performance. There can be no assurance, however, that managements expectations will necessarily come to pass. We do not intend, nor do we undertake any duty, to update any
forward-looking statements.

A wide range of factors could materially affect future developments and performance, including:



| |  |  | risks associated with a global economic downturn and its impact on capital markets;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | other general economic and political conditions in the United States and in other countries in which we currently do business, including those
resulting from recessions, political events and acts or threats of terrorism or military conflicts;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the impact of the geopolitical environment;
| | - |  | -------------------------------------------



| |  |  | industry conditions, including competition;
| | - |  | -------------------------------------------



| |  |  | fluctuations in operating costs;
| | - |  | --------------------------------



| |  |  | technological changes and innovations;
| | - |  | --------------------------------------



| |  |  | changes in labor conditions;
| | - |  | ----------------------------



| |  |  | legislative or regulatory requirements;
| | - |  | ---------------------------------------



| |  |  | capital expenditure requirements;
| | - |  | ---------------------------------



| |  |  | fluctuations in exchange rates and currency values;
| | - |  | ---------------------------------------------------



| |  |  | the outcome of pending and future litigation;
| | - |  | ---------------------------------------------



| |  |  | changes in interest rates;
| | - |  | --------------------------



| |  |  | taxes;
| | - |  | ------



| |  |  | shifts in population and other demographics;
| | - |  | --------------------------------------------



| |  |  | access to capital markets and borrowed indebtedness;
| | - |  | ----------------------------------------------------



| |  |  | the risk that we may not be able to integrate the operations of recently acquired companies successfully;
| | - |  | ---------------------------------------------------------------------------------------------------------



| |  |  | the risk that our cost savings initiatives may not be entirely successful or that any cost savings achieved from those initiatives may not persist;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the effect of leverage on our financial position and earnings;
| | - |  | --------------------------------------------------------------



| |  |  | the impact of the above and similar factors on Clear Channel Communications, Inc., our primary direct or indirect external source of capital; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | certain other factors set forth in our other filings with the Securities and Exchange Commission.
| | - |  | -------------------------------------------------------------------------------------------------

This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative and is not
intended to be exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

ITEM 1B. Unresolved Staff Comments

None.



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##### Table of Contents

ITEM 2. Properties

Our worldwide corporate headquarters is in San Antonio, Texas, where Clear Channel Communications owns an approximately 55,000 square foot
executive office building and an approximately 123,000 square foot data and administrative service center. The headquarters of our Americas operations is in Phoenix, Arizona, and the headquarters of our International operations is in London,
England. The types of properties required to support each of our outdoor advertising branches include offices, production facilities and structure sites. An outdoor branch and production facility is generally located in an industrial or warehouse
district.

With respect to each of the Americas and International segments, we primarily lease our outdoor display sites and
own or have acquired permanent easements for relatively few parcels of real property that serve as the sites for our outdoor displays. Our leases generally range from month-to-month to year-to-year and can be for terms of 10 years or longer, and
many provide for renewal options.

There is no significant concentration of displays under any one lease or subject to
negotiation with any one landlord. We believe that an important part of our management activity is to negotiate suitable lease renewals and extensions.

Please see Item 1 of Part I of this Annual Report on Form 10-K for a more complete description of the advertising display inventory.

ITEM 3. Legal Proceedings

We currently are
involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued an estimate of the probable costs for the resolution of these claims. These estimates have been developed in consultation with
counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by
changes in our assumptions or the effectiveness of our strategies related to these proceedings. Additionally, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding
would not have a material adverse effect on our financial condition or results of operations.

On or about July 12, 2006
and April 12, 2007, two of our operating businesses (L&C Outdoor Ltda. (L&C) and Publicidad Klimes Sao Paulo Ltda. (Klimes), respectively) in the Sao Paulo, Brazil market received notices of infraction from the
state taxing authority, seeking to impose a value added tax (VAT) on such businesses, retroactively for the period from December 31, 2001 through January 31, 2006. The taxing authority contends that our businesses fall within
the definition of communication services and as such are subject to the VAT.

We have filed petitions to challenge
the imposition of this tax against each of our businesses, which are proceeding separately. Our challenge for L&C. was unsuccessful at the first administrative level, but successful at the second administrative level. The state taxing authority
filed an appeal to the third and final administrative level, which required consideration by a full panel of 16 administrative law judges. On September 27, 2010, we received an unfavorable ruling at this final administrative level concluding
that the VAT applied to L&C and intend to appeal this ruling to the judicial level. We have filed a petition to have the case remanded to the second administrative level for consideration of the reasonableness of the amount of the penalty
assessed against us. The amounts allegedly owed by L&C are approximately $9.3 million in taxes, approximately $18.6 million in penalties and approximately $25.8 million in interest (as of December 31, 2010 at an exchange rate of .58).

Our challenge for Klimes was unsuccessful at the first administrative level, and denied at the second administrative level on
or about September 24, 2009. On January 5, 2011, the administrative law judges at the third administrative level published a ruling that the VAT applies to Klimes as well but did reduce the penalty assessed by the state taxing
authority. With the penalty reduction, the amounts allegedly owed by Klimes are approximately $10.5 million in taxes, approximately $5.2 million in penalties and approximately $16.1 million in interest (as of December 31, 2010 at an
exchange rate of .58). In mid-January 2011, the taxing authority filed an extraordinary



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##### Table of Contents

appeal to the third administrative level, asking that it reconsider the decision to reduce the penalty assessed against Klimes. The president of the third administrative level must decide
whether to accept that appeal before it can proceed. Based on our review of the law in similar cases in other Brazilian states, we have not accrued any costs related to these claims and believe the occurrence of loss is not probable.

Executive Officers of the Registrant

The following information with respect to our executive officers is presented as of February 11, 2011:



|                        |  |     |  |                                                                        
|----------------------- |  | --- |  | -----------------------------------------------------------------------
|Name                    |  | Age |  | Position                                                               
|Mark P. Mays            |  | 47  |  | Chairman of the Board, Chief Executive Officer and Director            
|Joseph W. Bagan         |  | 46  |  | Chief Operating OfficerAmericas                                       
|Jonathan D. Bevan       |  | 39  |  | Chief Operating OfficerInternational                                  
|Thomas W. Casey         |  | 48  |  | Executive Vice President and Chief Financial Officer                   
|Ronald H. Cooper        |  | 53  |  | President and Chief Executive OfficerAmericas                         
|C. William Eccleshare   |  | 55  |  | President and Chief Executive OfficerInternational                    
|Scott D. Hamilton       |  | 41  |  | Senior Vice President, Chief Accounting Officer and Assistant Secretary
|W. Chester Kwasniak     |  | 51  |  | Chief Financial OfficerAmericas                                       
|Franklin G. Sisson, Jr. |  | 58  |  | Executive Vice PresidentSales & Marketing                             
|Robert H. Walls, Jr.    |  | 50  |  | Executive Vice President, General Counsel and Secretary                

The officers named above serve until the next Board of Directors meeting immediately following the Annual Meeting of Stockholders or
until their respective successors are elected and qualified, in each case unless the officer sooner dies, resigns or is removed. We expect to retain the individuals named above as our executive officers at such next Board of Directors meeting
immediately following the Annual Meeting of Stockholders.

Mark P. Mayshas served as our Chief Executive Officer since
August 2005 and our Chairman since 2009. He has been a member of our Board since April 1997. Mr. Mark P. Mays was appointed as Chairman, President and Chief Executive Officer and a director of our indirect parent entity, CC Media Holdings,
on July 30, 2008. Mr. Mark P. Mays also served as President and Chief Operating Officer of another indirect parent entity, Clear Channel Communications, from February 1997 until his appointment as its President and Chief Executive
Officer in October 2004. He relinquished his duties as President of Clear Channel Communications in February 2006 until he was reappointed as President in January 2010. Mr. Mark P. Mays has been one of Clear Channel Communications
directors since May 1998 and its Chairman since July 2008. Mr. Mark P. Mays is the brother of Randall T. Mays, our former Chief Financial Officer and a current director of ours, and the Vice Chairman and a director of CC Media Holdings and a
director of Clear Channel Communications. In June 2010, Mr. Mark P. Mays announced his decision to retire as President and Chief Executive Officer of CC Media Holdings and Clear Channel Communications and as our Chief Executive Officer. CC
Media Holdings, as our indirect parent entity, has been actively searching for a replacement but, to date, has not identified his successor. In January 2011, Mr. Mays informed us that he would step down as Chief Executive Officer on the earlier
of the date that his successor joins the Company or March 31, 2011.

Joseph W. Bagan has served as our Chief
Operating OfficerAmericas since July 2010. Previously, he served as Chief Executive Officer of Sharklet Technologies, a life sciences and medical devices company, from June 2007 until June 2010. Prior thereto, Mr. Bagan served as Senior
Vice PresidentRegion Operations of Adelphia Communications Corporation from April 2004 until August 2006.

Jonathan
D. Bevan has served as our Chief Operating Officer  International since October 2009. He served as our Chief Financial Officer  International and Director of Corporate Development from November 2006 to November 2009. Prior thereto,
he served as our Chief Financial Officer  International from January 2006 to November 2006.



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Thomas W. Caseywas appointed as our Executive Vice President and Chief Financial
Officer, and as Executive Vice President and Chief Financial Officer of CC Media Holdings and Clear Channel Communications, effective as of January 4, 2010. Previously, Mr. Casey served as Executive Vice President and Chief Financial
Officer of Washington Mutual, Inc. from November 2002 until October 2008. Washington Mutual, Inc. filed for protection under Chapter 11 of the United States Bankruptcy Code in September 2008. Prior to November 2002, Mr. Casey served as Vice
President of General Electric Company and Senior Vice President and Chief Financial Officer of GE Financial Assurance since 1999.

Ronald H. Cooper has served as our Chief Executive OfficerAmericas since December 10, 2009. Previously, Mr. Cooper was the President and Chief Operating Officer of Adelphia
Communications Corporation from 2003 until 2006. Prior thereto he served as the Chief Operating Officer of AT&T Broadband from 2001 to 2002 and as President and Chief Operating Officer of RELERA Data Centers & Solutions from 2000 to
2001.

C. William Eccleshare has served as our Chief Executive OfficerInternational since September 1, 2009.
Previously, he was Chairman and CEO of BBDO Europe from 2005 to 2009. Prior thereto, he was Chairman and CEO of Young & Rubicam EMEA since 2002.

Scott D. Hamiltonwas appointed as our Senior Vice President, Chief Accounting Officer and Assistant Secretary, and as Senior Vice President, Chief Accounting Officer and Assistant Secretary of CC
Media Holdings and Clear Channel Communications, on April 26, 2010. Previously, Mr. Hamilton served as Controller and Chief Accounting Officer of Avaya Inc. (Avaya), a multinational telecommunications company, from October 2008
to April 2010. Prior thereto, Mr. Hamilton served in various accounting and finance positions at Avaya, beginning in October 2004. Prior thereto, Mr. Hamilton was employed by PricewaterhouseCoopers from September 1992 until September 2004.

W. Chester Kwasniak has served as our Chief Financial OfficerAmericas since June 15, 2009. Prior
thereto, Mr. Kwasniak served as Chief Financial Officer of Greenheck Fan Corporation, a multinational manufacturer of commercial building ventilation equipment, from April 2005 to September 2008. Prior thereto, he served as Chief Financial
Officer and Group Vice President of Finance and Business Development of the Sensors and Controls Group at Danaher Corporation, a diversified manufacturing and technology company, from October 2001 until April 2005.

Franklin G. Sisson, Jr. has served as our Executive Vice President  Sales and Marketing since 2001.

Robert H. Walls, Jr.was appointed as our Executive Vice President, General Counsel and Secretary, and as Executive
Vice President, General Counsel and Secretary of CC Media Holdings and Clear Channel Communications on January 1, 2010. Previously, Mr. Walls was a founding partner of Post Oak Energy Capital, LP and served as Managing Director through
December 31, 2009, and remains an advisor to and a partner of Post Oak Energy Capital, LP. Prior thereto, Mr. Walls was Executive Vice President and General Counsel of Enron Corp., and a member of its Chief Executive Office since 2002.
Prior thereto, he was Executive Vice President and General Counsel of Enron Global Assets and Services, Inc. and Deputy General Counsel of Enron Corp. Enron Corp. filed for protection under Chapter 11 of the United States Bankruptcy Code in December
2001.



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##### Table of Contents

PART II

ITEM 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities

Our Class A common stock trades on the New York Stock Exchange (NYSE) under the symbol
CCO. There were 83 shareholders of record as of February 8, 2011. This figure does not include an estimate of the indeterminate number of beneficial holders whose shares may be held of record by brokerage firms and clearing
agencies. The following table sets forth, for the calendar quarters indicated, the reported high and low sales prices of our Class A common stock as reported on the NYSE:



|               |  |                          |       |  |     |   |       | 
|-------------- |  | ------------------------ | ----- |  | --- | - | ----- | 
|               |  | Class A                  |      
|               |  | Common StockMarket Price |      
|               |  | High                     |       |  | Low |  
|               |  |                         
|2010           |  |                          |       |  |     |   |       | 
|First Quarter  |  | $                        | 12.10 |  |     | $ | 9.00  | 
|Second Quarter |  |                          | 13.25 |  |     |   | 8.43  | 
|Third Quarter  |  |                          | 11.99 |  |     |   | 8.08  | 
|Fourth Quarter |  |                          | 14.46 |  |     |   | 10.97 | 
|               |  |                         
|2009           |  |                          |       |  |     |   |       | 
|First Quarter  |  | $                        | 7.74  |  |     | $ | 2.14  | 
|Second Quarter |  |                          | 7.04  |  |     |   | 3.29  | 
|Third Quarter  |  |                          | 7.68  |  |     |   | 3.84  | 
|Fourth Quarter |  |                          | 11.29 |  |     |   | 6.51  | 

There is no
established public trading market for our Class B common Stock. There were 315,000,000 Class B common shares outstanding on February 9, 2011. Clear Channel Communications indirectly holds all of the shares of Class B common stock outstanding,
representing approximately 89% of the shares outstanding and approximately 99% of the voting power. The holders of Class A common stock and Class B common stock have identical rights, except holders of Class A common stock are entitled to
one vote per share while holders of Class B common stock are entitled to 20 votes per share. The Class B shares of common stock are convertible, at the option of the holder at any time or upon any transfer, into shares of Class A common stock
on a one-for-one basis, subject to certain limited exceptions.

Dividend Policy

To date, we have never paid dividends on our Class A common stock and our ability to pay dividends on our common stock is subject to
restrictions should we seek to do so in the future. We are a holding company with no independent operations and no significant assets other than the stock of our subsidiaries. We, therefore, are dependent on the receipt of dividends or other
distributions from our subsidiaries to pay dividends. In addition, the indenture governing our Class B senior notes contains restrictions on our ability to pay dividends. If we were to declare and pay cash dividends in the future, holders of
Class A common stock and Series B common stock would share equally, on a per share basis, in any such cash dividend. See Managements Discussion and Analysis of Financial Condition and Results of Operations  Liquidity and
Capital Resources  Sources of Capital  Clear Channel Worldwide Holdings Senior Notes.

Sales of Unregistered Securities

We did not sell any equity securities during 2010 that were not registered under the Securities Act of 1933.



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##### Table of Contents

Purchases of Equity Securities

The following table sets forth the purchases made during the quarter ended December 31, 2010 by or on behalf of the Company or an
affiliated purchaser of shares of our Class A common stock registered pursuant to Section 12 of the Exchange Act:



|                               |  |                                    |  |                                |  |                                                                               |  |                                                                                                        |       |  |  |  |  |   |  |  |  |   |             |    
|------------------------------ |  | ---------------------------------- |  | ------------------------------ |  | ----------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------ | ----- |  |  |  |  | - |  |  |  | - | ----------- | ---
|Period                         |  | Total Numberof SharesPurchased (1) |  | AveragePrice Paidper Share (2) |  | Total Number ofShares 
Purchasedas Part of PubliclyAnnounced Plansor
Programs |  | Maximum Number(or ApproximateDollar Value) ofShares
that May YetBe Purchased Underthe Plans
orPrograms
|                               |  |                                    |  |                               
|October 1 through October 31   |  |                                    |  | 196                            |  |                                                                               |  | $                                                                                                      | 11.65 |  |  |  |  |  |  |  |  |   |             | (3)
|                               |  |                                    |  |                               
|November 1 through November 30 |  |                                    |  | 14,883                         |  |                                                                               |  | $                                                                                                      | 13.58 |  |  |  |  |  |  |  |  |   |             | (3)
|                               |  |                                    |  |                               
|December 1 through December 31 |  |                                    |  | 11,777                         |  |                                                                               |  | $                                                                                                      | 13.87 |  |  |  |  |  |  |  |  |   |             | (3)
|                               |  |                                    |  |                                |  |                                                                               |  |                                                                                                        |       |  |  |  |  |   |  |  |  |   |             |    
|Total                          |  |                                    |  | 26,856                         |  |                                                                               |  | $                                                                                                      | 13.70 |  |  |  |  |  |  |  |  | $ | 100,000,000 | (3)
|                               |  |                                    |  |                                |  |                                                                               |  |                                                                                                        |       |  |  |  |  |   |  |  |  |   |             |    



| | (1) | The shares indicated consist of shares tendered by employees to the Company during the three months ended December 31, 2010 to satisfy the employees tax
withholding obligations in connection with the vesting and release of restricted shares, which are repurchased by the Company based on their fair market value on the date the relevant transaction occurs.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | The calculation of the average price paid per share does not give effect to any fees, commissions or other costs associated with the repurchase of such shares.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | On August 9, 2010, Clear Channel Communications announced that its board of directors approved a stock purchase program under which Clear Channel Communications or
its subsidiaries may purchase up to an aggregate of $100 million of the Class A common stock of the Company and/or the Class A common stock of CC Media Holdings. The stock purchase program does not have a fixed expiration date and may
be modified, suspended or terminated at any time at Clear Channel Communications discretion. No shares were purchased under the stock purchase program during the three months ended December 31, 2010.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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ITEM 6. Selected Financial Data

The following tables set forth our summary historical consolidated financial and other data as of the dates and for the periods indicated.
The summary historical financial data are derived from our audited consolidated financial statements. Historical results are not necessarily indicative of the results to be expected for future periods. Acquisitions and dispositions impact the
comparability of the historical consolidated financial data reflected in this schedule of Selected Financial Data.

The
summary historical consolidated financial and other data should be read in conjunction with Managements Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and the
related notes thereto located within Item 8 of Part II of this Annual Report on Form 10-K. The statement of operations for the year ended December 31, 2008 is comprised of two periods: post-merger and pre-merger. We applied purchase
accounting adjustments to the opening balance sheet on July 31, 2008 as the merger occurred at the close of business on July 30, 2008. The merger resulted in a new basis of accounting beginning on July 31, 2008. For additional
discussion regarding the pre-merger and post-merger periods, please refer to the consolidated financial statements located within Item 8 of Part II of this Annual Report on Form 10-K.



|                                                                                      |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  
|------------------------------------------------------------------------------------- |  | -------------------------------- | --------- | - | --------------- | - | ---------- | -------------- |  | - | -------------------- | - |  | ---------------- | --------- | - |  | - | --------- | -
|(In thousands, except per share data)                                                 |  | For the Years Ended December 31, |          
|                                                                                      |  | 2010Post-Merger                  |           |   | 2009Post-Merger |   |            | 2008  Combined |  |   | 2007 (1)  Pre-Merger |   |  | 2006  Pre-Merger |          
|Results of Operations Data:                                                           |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  
|Revenue                                                                               |  | $                                | 2,797,994 |   |                 | $ | 2,698,024  |                |  | $ | 3,289,287            |   |  | $                | 3,281,836 |   |  | $ | 2,897,721 |  
|Operating expenses:                                                                   |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  
|Direct operating expenses                                                             |  |                                  | 1,559,972 |   |                 |   | 1,625,083  |                |  |   | 1,882,136            |   |  |                  | 1,734,845 |   |  |   | 1,514,842 |  
|Selling, general and administrative expenses                                          |  |                                  | 494,656   |   |                 |   | 484,404    |                |  |   | 606,370              |   |  |                  | 537,994   |   |  |   | 486,994   |  
|Corporate expenses                                                                    |  |                                  | 107,596   |   |                 |   | 65,247     |                |  |   | 71,045               |   |  |                  | 66,080    |   |  |   | 65,542    |  
|Depreciation and amortization                                                         |  |                                  | 413,588   |   |                 |   | 439,647    |                |  |   | 472,350              |   |  |                  | 399,483   |   |  |   | 407,730   |  
|Impairment charges (2)                                                                |  |                                  | 11,493    |   |                 |   | 890,737    |                |  |   | 3,217,649            |   |  |                  |          |   |  |   |          |  
|Other operating income (expense)  net                                                |  |                                  | (23,753   | ) |                 |   | (8,231     | )              |  |   | 15,848               |   |  |                  | 11,824    |   |  |   | 22,846    |  
|                                                                                      |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  
|Operating income (loss)                                                               |  |                                  | 186,936   |   |                 |   | (815,325   | )              |  |   | (2,944,415           | ) |  |                  | 555,258   |   |  |   | 445,459   |  
|Interest expense  net (including interest on debt with Clear Channel Communications) |  |                                  | 219,993   |   |                 |   | 154,195    |                |  |   | 161,650              |   |  |                  | 157,881   |   |  |   | 162,583   |  
|Loss on marketable securities                                                         |  |                                  | 6,490     |   |                 |   | 11,315     |                |  |   | 59,842               |   |  |                  |          |   |  |   |          |  
|Equity in earnings (loss) of nonconsolidated affiliates                               |  |                                  | (9,936    | ) |                 |   | (31,442    | )              |  |   | 68,733               |   |  |                  | 4,402     |   |  |   | 7,460     |  
|Other income (expense) net                                                           |  |                                  | (5,335    | ) |                 |   | (9,368     | )              |  |   | 25,479               |   |  |                  | 10,113    |   |  |   | 331       |  
|                                                                                      |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  
|Income (loss) before income taxes                                                     |  |                                  | (54,818   | ) |                 |   | (1,021,645 | )              |  |   | (3,071,695           | ) |  |                  | 411,892   |   |  |   | 290,667   |  
|Income tax benefit (expense)                                                          |  |                                  | (21,599   | ) |                 |   | 149,110    |                |  |   | 220,319              |   |  |                  | (146,641  | ) |  |   | (122,080  | )
|                                                                                      |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  
|Consolidated net income (loss)                                                        |  |                                  | (76,417   | ) |                 |   | (872,535   | )              |  |   | (2,851,376           | ) |  |                  | 265,251   |   |  |   | 168,587   |  
|Less amount attributable to noncontrolling interest                                   |  |                                  | 11,106    |   |                 |   | (4,346     | )              |  |   | (293                 | ) |  |                  | 19,261    |   |  |   | 15,515    |  
|                                                                                      |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  
|Net income (loss) attributable to the Company                                         |  | $                                | (87,523   | ) |                 | $ | (868,189   | )              |  | $ | (2,851,083           | ) |  | $                | 245,990   |   |  | $ | 153,072   |  
|                                                                                      |  |                                  |           |   |                 |   |            |                |  |   |                      |   |  |                  |           |   |  |   |           |  



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|                                              |  |                                  |         |   |                   |   |         |                |  |   |                      |   |  |                  |         |  |  |   |         | 
|--------------------------------------------- |  | -------------------------------- | ------- | - | ----------------- | - | ------- | -------------- |  | - | -------------------- | - |  | ---------------- | ------- |  |  | - | ------- | 
|                                              |  | For the Years Ended December 31, |        
|                                              |  | 2010  Post-Merger                |         |   | 2009  Post-Merger |   |         | 2008  Combined |  |   | 2007 (1)  Pre-Merger |   |  | 2006  Pre-Merger |        
|Net income (loss) per common share:           |  |                                  |         |   |                   |   |         |                |  |   |                      |   |  |                  |         |  |  |   |         | 
|Basic:                                        |  |                                  |         |   |                   |   |         |                |  |   |                      |   |  |                  |         |  |  |   |         | 
|Net income (loss) attributable to the Company |  | $                                | (0.26   | ) |                   | $ | (2.46   | )              |  | $ | (8.03                | ) |  | $                | 0.69    |  |  | $ | 0.43    | 
|                                              |  |                                  |         |   |                   |   |         |                |  |   |                      |   |  |                  |         |  |  |   |         | 
|                                              |  |                                  |         |   |                  
|Weighted average common shares                |  |                                  | 355,568 |   |                   |   | 355,377 |                |  |   | 355,233              |   |  |                  | 354,838 |  |  |   | 352,155 | 
|                                              |  |                                  |         |   |                  
|Diluted:                                      |  |                                  |         |   |                   |   |         |                |  |   |                      |   |  |                  |         |  |  |   |         | 
|Net income (loss) attributable to the Company |  | $                                | (0.26   | ) |                   | $ | (2.46   | )              |  | $ | (8.03                | ) |  | $                | 0.69    |  |  | $ | 0.43    | 
|                                              |  |                                  |         |   |                   |   |         |                |  |   |                      |   |  |                  |         |  |  |   |         | 
|                                              |  |                                  |         |   |                  
|Weighted average common shares                |  |                                  | 355,568 |   |                   |   | 355,377 |                |  |   | 355,233              |   |  |                  | 355,806 |  |  |   | 352,262 | 



|                                             |  |                    |           |  |                 |   |           |                 |  |   |                      |  |  |                  |           |  |  |   |           | 
|-------------------------------------------- |  | ------------------ | --------- |  | --------------- | - | --------- | --------------- |  | - | -------------------- |  |  | ---------------- | --------- |  |  | - | --------- | 
|(In thousands)                               |  | As of December 31, |          
|                                             |  | 2010Post-Merger    |           |  | 2009Post-Merger |   |           | 2008Post-Merger |  |   | 2007 (1)  Pre-Merger |  |  | 2006  Pre-Merger |          
|Balance Sheet Data:                          |  |                    |           |  |                 |   |           |                 |  |   |                      |  |  |                  |           |  |  |   |           | 
|Current assets                               |  | $                  | 1,569,978 |  |                 | $ | 1,640,545 |                 |  | $ | 1,554,652            |  |  | $                | 1,607,107 |  |  | $ | 1,189,915 | 
|Property, plant and equipment  net          |  |                    | 2,297,724 |  |                 |   | 2,440,638 |                 |  |   | 2,586,720            |  |  |                  | 2,244,108 |  |  |   | 2,191,839 | 
|Total assets                                 |  |                    | 7,096,050 |  |                 |   | 7,192,422 |                 |  |   | 8,050,761            |  |  |                  | 5,935,604 |  |  |   | 5,421,891 | 
|Current liabilities                          |  |                    | 785,421   |  |                 |   | 771,093   |                 |  |   | 791,865              |  |  |                  | 921,292   |  |  |   | 841,509   | 
|Long-term debt, including current maturities |  |                    | 2,563,809 |  |                 |   | 2,608,878 |                 |  |   | 2,601,854            |  |  |                  | 2,682,021 |  |  |   | 2,684,176 | 
|Shareholders equity                         |  |                    | 2,708,055 |  |                 |   | 2,761,377 |                 |  |   | 3,543,823            |  |  |                  | 2,198,594 |  |  |   | 1,768,279 | 



|(1) | Effective January 1, 2007, the Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, codified in ASC 740-10. In
accordance with the provisions of ASC 740-10, the effects of adoption were accounted for as a cumulative-effect adjustment recorded to the balance of retained earnings on the date of adoption.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | We recorded non-cash impairment charges of $11.5 million during 2010. We also recorded non-cash impairment charges of $890.7 million in 2009 and $3.2 billion in 2008 as
a result of the global economic downturn which adversely affected advertising revenues across our businesses. Our impairment charges are discussed more fully in Item 8 of Part II of this Annual Report on Form 10-K.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|ITEM 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

OVERVIEW

Clear Channel Communications Merger

On July 30, 2008, Clear Channel Communications, Inc. (Clear Channel Communications), our parent company, completed its
merger with a subsidiary of CC Media Holdings, Inc. (CC Media Holdings), a company formed by a group of private equity funds sponsored by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. (together, the Sponsors).
Clear Channel Communications is now owned indirectly by CC Media Holdings. The merger was accounted for as a purchase business combination in conformity with Statement of Financial Accounting Standards No. 141, Business Combinations, and
Emerging Issues Task Force Issue 88-16, Basis in Leveraged Buyout Transactions. ASC 805-50-S99-1 requires the application of push down accounting in situations where the ownership of an entity has changed. As a result, the post-merger
financial statements reflect a new basis of accounting. A portion of the consideration paid has been allocated to the assets and liabilities acquired at their respective fair values at July 30, 2008. The remaining portion was recorded at the
continuing shareholders basis, due to the fact that certain shares of Clear Channel Communications were exchanged for shares of CC Media Holdings Class A common stock. Excess consideration after this allocation was recorded as goodwill.

The purchase price allocation was complete as of July 30, 2009 in accordance with ASC 805-10-25, which requires that the
allocation period not exceed one year from the date of acquisition.

Executive Summary

The key highlights of our business for the year ended December 31, 2010 are summarized below:



| |  |  | Consolidated revenue increased $100.0 million for the year ended December 31, 2010 compared to 2009, primarily as a result of improved economic
conditions.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Americas revenue increased $51.9 million for the year ended December 31, 2010 compared to 2009, driven by revenue growth across our advertising
inventory, particularly digital.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | International revenue increased $48.1 million for the year ended December 31, 2010 compared to 2009, primarily as a result of increased revenue
from street furniture across most countries, partially offset by a decrease from movements in foreign exchange of $10.3 million.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | During 2010, we received $51.0 million in Federal income tax refunds.
| | - |  | ---------------------------------------------------------------------



| |  |  | On October 15, 2010, we transferred our interest in our Branded Cities operations to our joint venture partner, The Ellman Companies. We
recorded a loss of $25.3 million in Other operating income (expense)  net related to the transfer.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We performed impairment tests on our goodwill, billboard permits, and other intangible assets and recorded impairment charges of $11.5 million. Please
see the notes to the consolidated financial statements included in Item 8 of Part II of this Annual Report on Form 10-K for a more complete description of the impairment charges.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The key highlights of our business for the year ended December 31, 2009 are summarized below:



| |  |  | Consolidated revenue decreased $591.3 million for the year ended December 31, 2009 compared to 2008, primarily as a result of weakness in
advertising and the global economy.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Americas revenue decreased $192.1 million for the year ended December 31, 2009 compared to 2008, driven by declines in bulletin, poster and
transit revenues due to cancellations and non-renewals from larger national advertisers.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | International revenue decreased $399.2 million for the year ended December 31, 2009 compared to 2008, primarily as a result of weak advertising
demand across most countries. Also contributing to the decline was $118.5 million from movements in foreign exchange.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We recorded a $21.3 million impairment to taxi contract intangible assets in our Americas segment and a $55.0 million impairment primarily related to
street furniture tangible assets and contract intangible assets in our International segment under ASC 360-10.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | We performed impairment tests on our goodwill, billboard permits, and other intangible assets and recorded impairment charges of $890.7 million. We had
previously recorded impairment charges of $3.2 billion as of December 31, 2008. Please see the notes to the consolidated financial statements included in Item 8 of Part II of this Annual Report on Form 10-K for a more complete description
of the impairment charges.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | Our subsidiary, Clear Channel Worldwide Holdings, Inc. (CCWH), issued $500.0 million aggregate principal amount of Series A Senior Notes
due 2017 and $2.0 billion aggregate principal amount of Series B Senior Notes due 2017.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | On December 31, 2009, our subsidiary Clear Channel Outdoor, Inc. (CCOI) disposed of Clear Channel Taxi Media, LLC, our taxi
advertising business and recorded a loss of $20.9 million.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Format of Presentation

Managements discussion and analysis of our results of operations and financial condition should be read in conjunction with the
consolidated financial statements and related footnotes. Our discussion is presented on both a consolidated and segment basis. Our reportable operating segments are Americas Outdoor Advertising (Americas or Americas outdoor
advertising) and International Outdoor Advertising (International or International outdoor advertising).

We manage our operating segments primarily focusing on their operating income, while Corporate expenses, Impairment charges, Other operating income (expense) - net, Interest expense, Gain (loss) on
marketable securities, Equity in earnings (loss) of nonconsolidated affiliates, Other income (expense)  net and Income tax benefit (expense) are managed on a total company basis and are, therefore, included only in our discussion of
consolidated results.

In conjunction with the merger, Clear Channel Communications $1.75 billion revolving credit
facility, including the $150.0 million sub-limit, was terminated. The facility was replaced with a $2.0 billion revolving credit facility with a maturity in July 2014, which includes a $150.0 million sub-limit that certain of our International
subsidiaries may borrow against to the extent Clear Channel Communications has not already borrowed against this capacity and is in compliance with its covenants under the credit facility. The obligations of these International subsidiaries that are
borrowers under the revolving credit facility are guaranteed by certain of our material wholly-owned subsidiaries, and secured by substantially all of the assets of such borrowers and guarantors, subject to permitted liens and other exceptions. As
of December 31, 2010, we had no outstanding borrowings under the $150.0 million sub-limit facility as Clear Channel Communications had already borrowed against the entire capacity.

Certain Indenture EBITDA Adjustments

In the fourth quarter of 2008, CC
Media Holdings initiated a restructuring program targeting a reduction in fixed costs through renegotiations of lease agreements, workforce reductions, the elimination of overlapping functions and other cost savings initiatives (the
restructuring program). This restructuring program was substantially complete as of December 31, 2010.

The
indenture governing the Series B Senior Notes issued by our subsidiary, CCWH, allows us to adjust the calculation of our adjusted EBITDA (as calculated in accordance with the indenture) for certain charges. These charges include restructuring costs
of $19.2 million, $53.2 million and $35.5 million for the years ended December 31, 2010, 2009 and 2008, respectively. In addition, certain other charges, including costs related to the closure and/or consolidation of facilities, retention
charges, systems establishment costs and acquisition and consulting fees incurred in connection with any of the foregoing, among other items, are also adjustments to the calculation of adjusted EBITDA. For the year ended December 31, 2010, we
adjusted our adjusted EBITDA calculation for an additional $5.7 million. See Sources of Capital below for a description of calculation of our adjusted EBITDA pursuant to the indenture.

Description of Our Business

Our revenue is derived from selling advertising space on the displays we own or operate in key markets worldwide, consisting primarily of billboards, street furniture and transit displays.



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We own the majority of our advertising displays, which typically are located on sites that
we either lease or own or for which we have acquired permanent easements. Our advertising contracts with clients typically outline the number of displays reserved, the duration of the advertising campaign and the unit price per display.

Our advertising rates are based on a number of different factors including location, competition, size of display, illumination, market
and gross ratings points. Gross ratings points are the total number of impressions delivered by a display or group of displays, expressed as a percentage of a market population. The number of impressions delivered by a display is measured
by the number of people passing the site during a defined period of time and, in some international markets, is weighted to account for such factors as illumination, proximity to other displays and the speed and viewing angle of approaching traffic.
Management typically monitors our business by reviewing the average rates, average revenue per display, or yield, occupancy, and inventory levels of each of our display types by market. In addition, because a significant portion of our advertising
operations are conducted in foreign markets, primarily Europe and China, management reviews the operating results from our foreign operations on a constant dollar basis. A constant dollar basis allows for comparison of operations independent of
foreign exchange movements.

The significant expenses associated with our operations include (i) direct production,
maintenance and installation expenses, (ii) site lease expenses for land under our displays and (iii) revenue-sharing or minimum guaranteed amounts payable under our billboard, street furniture and transit display contracts. Our direct
production, maintenance and installation expenses include costs for printing, transporting and changing the advertising copy on our displays, the related labor costs, the vinyl and paper costs and the costs for cleaning and maintaining our displays.
Vinyl and paper costs vary according to the complexity of the advertising copy and the quantity of displays. Our site lease expenses include lease payments for use of the land under our displays, as well as any revenue-sharing arrangements or
minimum guaranteed amounts payable that we may have with the landlords. The terms of our site leases and revenue-sharing or minimum guaranteed contracts generally range from one to 20 years.

In our International business, normal market practice is to sell space on billboards and street furniture as network packages with
contract terms typically ranging from one to two weeks, compared to contract terms typically ranging from four weeks to one year in the U.S. In addition, competitive bidding for street furniture and transit display contracts, which constitute a
larger portion of our International business, and a different regulatory environment for billboards, result in higher site lease cost in our International business compared to our Americas business. As a result, our margins are typically lower in
our International business than in the Americas.

Our street furniture and transit display contracts with municipal agencies,
the terms of which range from three to 20 years, generally require us to make upfront investments in property, plant and equipment. These contracts may also include upfront lease payments and/or minimum annual guaranteed lease payments. We can give
no assurance that our cash flows from operations over the terms of these contracts will exceed the upfront and minimum required payments.

Relationship with Clear Channel Communications

There are several agreements which govern our relationship with Clear Channel Communications including the Master Agreement, Corporate Services Agreement, Employee Matters Agreement and Tax Matters
Agreement. Clear Channel Communications has the right to terminate these agreements in various circumstances. As of the date of the filing of this Annual Report, no notice of termination of any of these agreements has been received from Clear
Channel Communications. Our agreements with Clear Channel Communications continue under the same terms and conditions subsequent to Clear Channel Communications merger.

In accordance with the Master Agreement, our branch managers follow a corporate policy allowing Clear Channel Communications to use, without charge, Americas displays they believe would otherwise be
unsold. Our sales personnel receive partial revenue credit for that usage for compensation purposes. This partial revenue credit is not included in our reported revenue. Clear Channel Communications bears the cost of producing the advertising and we
bear the costs of installing and removing this advertising. In 2010, we estimated this discounted revenue would have been less than 1% of our Americas revenue.



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Under the Corporate Services Agreement, Clear Channel Communications provides management
services to us. These services are charged to us based on actual direct costs incurred or allocated by Clear Channel Communications based on headcount, revenue or other factors on a pro rata basis. For the years ended December 31, 2010, 2009
and 2008, we recorded approximately $38.1 million, $28.5 million and $28.1 million, respectively, as a component of corporate expenses for these services.

RESULTS OF OPERATIONS

Consolidated Results of Operations

The following tables summarize our historical results of operations:



|                                                                                |  |                            |           |   |                            |   |            |                            |  |   |            |  
|------------------------------------------------------------------------------- |  | -------------------------- | --------- | - | -------------------------- | - | ---------- | -------------------------- |  | - | ---------- | -
|(In thousands)                                                                  |  | Post-Merger                |           |   | Post-Merger                |   |            | Combined(1)                | 
|                                                                                |  | Year EndedDecember 31,2010 |           |   | Year EndedDecember 31,2009 |   |            | Year EndedDecember 31,2008 | 
|Revenue                                                                         |  | $                          | 2,797,994 |   |                            | $ | 2,698,024  |                            |  | $ | 3,289,287  |  
|Operating expenses:                                                             |  |                            |           |   |                            |   |            |                            |  |   |            |  
|Direct operating expenses                                                       |  |                            | 1,559,972 |   |                            |   | 1,625,083  |                            |  |   | 1,882,136  |  
|Selling, general and administrative expenses                                    |  |                            | 494,656   |   |                            |   | 484,404    |                            |  |   | 606,370    |  
|Corporate expenses                                                              |  |                            | 107,596   |   |                            |   | 65,247     |                            |  |   | 71,045     |  
|Depreciation and amortization                                                   |  |                            | 413,588   |   |                            |   | 439,647    |                            |  |   | 472,350    |  
|Impairment charges                                                              |  |                            | 11,493    |   |                            |   | 890,737    |                            |  |   | 3,217,649  |  
|Other operating income (expense) net                                           |  |                            | (23,753   | ) |                            |   | (8,231     | )                          |  |   | 15,848     |  
|                                                                                |  |                            |           |   |                            |   |            |                            |  |   |            |  
|Operating income (loss)                                                         |  |                            | 186,936   |   |                            |   | (815,325   | )                          |  |   | (2,944,415 | )
|Interest expense (including interest on debt with Clear Channel Communications) |  |                            | 219,993   |   |                            |   | 154,195    |                            |  |   | 161,650    |  
|Loss on marketable securities                                                   |  |                            | 6,490     |   |                            |   | 11,315     |                            |  |   | 59,842     |  
|Equity in earnings (loss) of nonconsolidated affiliates                         |  |                            | (9,936    | ) |                            |   | (31,442    | )                          |  |   | 68,733     |  
|Other income (expense) net                                                     |  |                            | (5,335    | ) |                            |   | (9,368     | )                          |  |   | 25,479     |  
|                                                                                |  |                            |           |   |                            |   |            |                            |  |   |            |  
|Loss before income taxes                                                        |  |                            | (54,818   | ) |                            |   | (1,021,645 | )                          |  |   | (3,071,695 | )
|Income tax benefit (expense)                                                    |  |                            | (21,599   | ) |                            |   | 149,110    |                            |  |   | 220,319    |  
|                                                                                |  |                            |           |   |                            |   |            |                            |  |   |            |  
|Consolidated net loss                                                           |  |                            | (76,417   | ) |                            |   | (872,535   | )                          |  |   | (2,851,376 | )
|Less amount attributable to noncontrolling interest                             |  |                            | 11,106    |   |                            |   | (4,346     | )                          |  |   | (293       | )
|                                                                                |  |                            |           |   |                            |   |            |                            |  |   |            |  
|Net loss attributable to the Company                                            |  | $                          | (87,523   | ) |                            | $ | (868,189   | )                          |  | $ | (2,851,083 | )
|                                                                                |  |                            |           |   |                            |   |            |                            |  |   |            |  





|(1) | The results of operations for the year ended December 31, 2008 are presented on a combined basis and are comprised of two periods: post-merger and pre-merger,
which relate to the period succeeding Clear Channel Communications merger and the period preceding the merger, respectively. The post-merger and pre-merger results of operations are presented as follows:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|                                                                                |  |                                           |            |   |                                         |   |           |                            |  |   |            |  
|------------------------------------------------------------------------------- |  | ----------------------------------------- | ---------- | - | --------------------------------------- | - | --------- | -------------------------- |  | - | ---------- | -
|(In thousands)                                                                  |  |                                           |            |   |                                         |   |           |                            | 
|                                                                                |  | Post-Merger                               |            |   | Pre-Merger                              |   |           | Combined                   | 
|                                                                                |  | Period fromJuly 31throughDecember 31,2008 |            |   | Period fromJanuary 1throughJuly 30,2008 |   |           | Year
EndedDecember 31,2008 | 
|Revenue                                                                         |  | $                                         | 1,327,224  |   |                                         | $ | 1,962,063 |                            |  | $ | 3,289,287  |  
|Operating expenses:                                                             |  |                                           |            |   |                                         |   |           |                            |  |   |            |  
|Direct operating expenses                                                       |  |                                           | 762,704    |   |                                         |   | 1,119,432 |                            |  |   | 1,882,136  |  
|Selling, general and administrative expenses                                    |  |                                           | 261,524    |   |                                         |   | 344,846   |                            |  |   | 606,370    |  
|Corporate expenses                                                              |  |                                           | 31,681     |   |                                         |   | 39,364    |                            |  |   | 71,045     |  
|Depreciation and amortization                                                   |  |                                           | 224,713    |   |                                         |   | 247,637   |                            |  |   | 472,350    |  
|Impairment charges                                                              |  |                                           | 3,217,649  |   |                                         |   |          |                            |  |   | 3,217,649  |  
|Other operating income  net                                                    |  |                                           | 4,870      |   |                                         |   | 10,978    |                            |  |   | 15,848     |  
|                                                                                |  |                                           |            |   |                                         |   |           |                            |  |   |            |  
|Operating income (loss)                                                         |  |                                           | (3,166,177 | ) |                                         |   | 221,762   |                            |  |   | (2,944,415 | )
|Interest expense (including interest on debt with Clear Channel Communications) |  |                                           | 72,863     |   |                                         |   | 88,787    |                            |  |   | 161,650    |  
|Loss on marketable securities                                                   |  |                                           | 59,842     |   |                                         |   |          |                            |  |   | 59,842     |  
|Equity in earnings (loss) of nonconsolidated affiliates                         |  |                                           | (2,109     | ) |                                         |   | 70,842    |                            |  |   | 68,733     |  
|Other income  net                                                              |  |                                           | 12,114     |   |                                         |   | 13,365    |                            |  |   | 25,479     |  
|                                                                                |  |                                           |            |   |                                         |   |           |                            |  |   |            |  
|Income (loss) before income taxes                                               |  |                                           | (3,288,877 | ) |                                         |   | 217,182   |                            |  |   | (3,071,695 | )
|Income tax benefit (expense)                                                    |  |                                           | 271,895    |   |                                         |   | (51,576   | )                          |  |   | 220,319    |  
|                                                                                |  |                                           |            |   |                                         |   |           |                            |  |   |            |  
|Consolidated net income (loss)                                                  |  |                                           | (3,016,982 | ) |                                         |   | 165,606   |                            |  |   | (2,851,376 | )
|Less amount attributable to noncontrolling interest                             |  |                                           | 1,655      |   |                                         |   | (1,948    | )                          |  |   | (293       | )
|                                                                                |  |                                           |            |   |                                         |   |           |                            |  |   |            |  
|Net income (loss) attributable to the Company                                   |  | $                                         | (3,018,637 | ) |                                         | $ | 167,554   |                            |  | $ | (2,851,083 | )
|                                                                                |  |                                           |            |   |                                         |   |           |                            |  |   |            |  

Revenue

2010 v. 2009

Our consolidated revenue increased $100.0 million during 2010
compared to 2009. Americas revenue increased $51.9 million, driven by revenue increases across most of our advertising inventory, particularly digital. Our International revenue increased $48.1 million, primarily due to revenue growth from street
furniture across most countries, partially offset by a $10.3 million decrease from movements in foreign exchange.

2009 v.
2008

Our revenue for 2009 decreased $591.3 million compared to 2008. Our Americas revenue declined $192.1 million,
attributable to decreases in bulletin, poster and airport revenues associated with cancellations and non-renewals from larger national advertisers. Our International revenue declined $399.2 million primarily as a result of challenging advertising
climates in our markets and approximately $118.5 million from movements in foreign exchange.

Direct Operating Expenses

2010 v. 2009

Our direct operating expenses decreased $65.1 million during 2010 compared to 2009. Americas direct operating expenses decreased $19.5 million, primarily as a result of the disposition of our taxi
advertising business, partially offset by an increase in site lease expenses associated with the increase in revenue. Direct operating expenses in our International segment decreased $45.6 million, primarily as a result of a $20.4 million decline in
expenses incurred in connection with our restructuring program in addition to decreased site lease expenses associated with cost savings from our restructuring program, and included an $8.2 million decrease from movements in foreign exchange.



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2009 v. 2008

Direct operating expenses for 2009 decreased $257.0 million compared to 2008. Our Americas operating expenses decreased $39.4 million driven by decreased site-lease expenses from lower revenue and cost
savings from the restructuring program. Our International business contributed $217.6 million of the overall decrease primarily from a decrease in site-lease expenses from lower revenue and cost savings from the restructuring program and $85.6
million related to movements in foreign exchange.

Selling, General & Administrative (SG&A) Expenses

2010 v. 2009

Our SG&A expenses increased $10.3 million during 2010 compared to 2009. SG&A expenses increased $16.6 million in our Americas segment, primarily as a result of increased selling and marketing
costs associated with the increase in revenue in addition to the unfavorable impact of litigation. Our International SG&A expenses decreased $6.3 million, primarily as a result of a decrease in business tax related to a change in French tax law,
and included a $2.3 million decrease from movements in foreign exchange.

2009 v. 2008

SG&A expenses decreased $122.0 million during 2009 compared to 2008. Our Americas SG&A expenses decreased $50.7 million primarily
related to a decline in commission expense. Our International SG&A expenses decreased $71.3 million primarily attributable to an overall decline in compensation and administrative expenses and $23.7 million from movements in foreign exchange.

Corporate Expenses

2010 v. 2009

Corporate expenses increased $42.3 million during 2010
compared to 2009, primarily due to increases in bonus expense from improved operating performance and increases related to headcount from centralization efforts and the expansion of corporate capabilities.

2009 v. 2008

Corporate expenses decreased $5.8 million in 2009 compared to 2008. The decrease was attributable to a decrease in expenses in our International segment of approximately $7.9 million due primarily to our
cost savings initiatives and reduced legal fees compared to 2008. This decrease was partially offset by an increase in restructuring costs of $3.3 million.

Under the Corporate Services agreement between us and Clear Channel Communications, Clear Channel Communications provides management services to us, which include, among other things, (i) treasury,
payroll and other financial related services, (ii) executive officer services, (iii) human resources and employee benefits services, (iv) legal and related services, (v) information systems, network and related services,
(vi) investment services, (vii) procurement and sourcing support services, and (viii) other general corporate services. These services are charged to us based on actual direct costs incurred or allocated by Clear Channel
Communications based on headcount, revenue or other factors on a pro rata basis. For the years ended December 31, 2010, 2009 and 2008, we recorded approximately $38.1 million, $28.5 million and $28.1 million, respectively, as a component of
corporate expenses for these services.

Depreciation and Amortization

2010 v. 2009

Depreciation and amortization decreased $26.1 million during 2010 compared to 2009, primarily as a result of assets in our International segment that became fully amortized during 2009.



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2009 v. 2008

Depreciation and amortization for 2009 decreased $32.7 million compared to 2008. The decrease was primarily due to a $43.2 million decrease in depreciation expense associated with the impairment of assets
in our International segment during the fourth quarter of 2008 and a $20.6 million decrease from movements in foreign exchange. The decrease was partially offset by $34.3 million related to additional amortization associated with the purchase
accounting adjustments to the acquired intangible assets.

Impairment Charges

We performed our annual impairment test on October 1, 2010 on our goodwill, billboard permits and other intangible assets and
recorded impairment charges of $11.5 million. We also performed impairment tests in 2009 and 2008 on our goodwill, billboard permits and other intangible assets and recorded impairment charges of $890.7 million and $3.2 billion, respectively. Please
see the notes to the consolidated financial statements included in Item 8 of Part II of this Annual Report on Form 10-K for a further description of the impairment charges.

A rollforward of our goodwill balance from July 30, 2008 through December 31, 2009 by reporting unit is as follows:



|                              |  |                                |           |  |              |   |       |              |  |   |                 |   |  |            |         |   |             |   |            |                                 |  |   |         |   |  |   |           | 
|----------------------------- |  | ------------------------------ | --------- |  | ------------ | - | ----- | ------------ |  | - | --------------- | - |  | ---------- | ------- | - | ----------- | - | ---------- | ------------------------------- |  | - | ------- | - |  | - | --------- | 
|(In thousands)                |  |                                |           |  |              |   |       |              |  |   |                 |   |  |            |         |   |             |   |            |                                 | 
|                              |  | Balances as ofJuly 
30,2008    |           |  | Acquisitions |   |       | Dispositions |  |   | ForeignCurrency |   |  | Impairment |         |   | Adjustments |   |            | Balances as ofDecember 
31,2008 | 
|United States Outdoor Markets |  | $                              | 3,083,660 |  |              | $ |      |              |  | $ |                |   |  | $          |        |   |             | $ | (2,296,915 | )                               |  | $ | 37,985  |   |  | $ | 824,730   | 
|Switzerland                   |  |                                | 57,664    |  |              |   |      |              |  |   |                |   |  |            | (977    | ) |             |   |           |                                 |  |   | 198     |   |  |   | 56,885    | 
|Ireland                       |  |                                | 16,224    |  |              |   |      |              |  |   |                |   |  |            | (1,939  | ) |             |   |           |                                 |  |   |        |   |  |   | 14,285    | 
|Baltics                       |  |                                | 14,336    |  |              |   |      |              |  |   |                |   |  |            |        |   |             |   | (3,707     | )                               |  |   |        |   |  |   | 10,629    | 
|Americas  Mexico             |  |                                | 20,501    |  |              |   |      |              |  |   |                |   |  |            | (11,772 | ) |             |   |           |                                 |  |   |        |   |  |   | 8,729     | 
|Americas  Chile              |  |                                | 9,311     |  |              |   |      |              |  |   |                |   |  |            | (5,347  | ) |             |   |           |                                 |  |   |        |   |  |   | 3,964     | 
|Americas  Peru               |  |                                | 45,284    |  |              |   |      |              |  |   |                |   |  |            |        |   |             |   |           |                                 |  |   |        |   |  |   | 45,284    | 
|Americas  Brazil             |  |                                | 11,674    |  |              |   |      |              |  |   |                |   |  |            | (6,703  | ) |             |   |           |                                 |  |   |        |   |  |   | 4,971     | 
|All Others  International    |  |                                | 426,546   |  |              |   |      |              |  |   | (542            | ) |  |            | (60,603 | ) |             |   | (169,728   | )                               |  |   | 10,071  |   |  |   | 205,744   | 
|Americas  Canada             |  |                                | 35,390    |  |              |   |      |              |  |   |                |   |  |            | (5,783  | ) |             |   | (24,687    | )                               |  |   |        |   |  |   | 4,920     | 
|                              |  |                                |           |  |              |   |       |              |  |   |                 |   |  |            |         |   |             |   |            |                                 |  |   |         |   |  |   |           | 
|                              |  | $                              | 3,720,590 |  |              | $ |      |              |  | $ | (542            | ) |  | $          | (93,124 | ) |             | $ | (2,495,037 | )                               |  | $ | 48,254  |   |  | $ | 1,180,141 | 
|                              |  |                                |           |  |              |   |       |              |  |   |                 |   |  |            |         |   |             |   |            |                                 |  |   |         |   |  |   |           | 
|                              |  |                                |           |  |              |   |      
|(In thousands)                |  |                                |           |  |              |   |       |              |  |   |                 |   |  |            |         |   |             |   |            |                                 | 
|                              |  | Balances as ofDecember 31,2008 |           |  | Acquisitions |   |       | Dispositions |  |   | ForeignCurrency |   |  | Impairment |         |   | Adjustments |   |            | Balances as ofDecember 31,2009  | 
|United States Outdoor Markets |  | $                              | 824,730   |  |              | $ | 2,250 |              |  | $ |                |   |  | $          |        |   |             | $ | (324,892   | )                               |  | $ | 69,844  |   |  | $ | 571,932   | 
|Switzerland                   |  |                                | 56,885    |  |              |   |      |              |  |   |                |   |  |            | 1,276   |   |             |   | (7,827     | )                               |  |   |        |   |  |   | 50,334    | 
|Ireland                       |  |                                | 14,285    |  |              |   |      |              |  |   |                |   |  |            | 223     |   |             |   | (12,591    | )                               |  |   |        |   |  |   | 1,917     | 
|Baltics                       |  |                                | 10,629    |  |              |   |      |              |  |   |                |   |  |            |        |   |             |   | (10,629    | )                               |  |   |        |   |  |   |          | 
|Americas  Mexico             |  |                                | 8,729     |  |              |   |      |              |  |   |                |   |  |            | 7,440   |   |             |   | (10,085    | )                               |  |   | (442    | ) |  |   | 5,642     | 
|Americas  Chile              |  |                                | 3,964     |  |              |   |      |              |  |   |                |   |  |            | 4,417   |   |             |   | (8,381     | )                               |  |   |        |   |  |   |          | 
|Americas  Peru               |  |                                | 45,284    |  |              |   |      |              |  |   |                |   |  |            |        |   |             |   | (37,609    | )                               |  |   |        |   |  |   | 7,675     | 
|Americas  Brazil             |  |                                | 4,971     |  |              |   |      |              |  |   |                |   |  |            | 4,436   |   |             |   | (9,407     | )                               |  |   |        |   |  |   |          | 
|All Others  International    |  |                                | 205,744   |  |              |   | 110   |              |  |   |                |   |  |            | 15,913  |   |             |   | (42,717    | )                               |  |   | 45,042  |   |  |   | 224,092   | 
|Americas  Canada             |  |                                | 4,920     |  |              |   |      |              |  |   |                |   |  |            |        |   |             |   |           |                                 |  |   | (4,920  | ) |  |   |          | 
|                              |  |                                |           |  |              |   |       |              |  |   |                 |   |  |            |         |   |             |   |            |                                 |  |   |         |   |  |   |           | 
|                              |  | $                              | 1,180,141 |  |              | $ | 2,360 |              |  | $ |                |   |  | $          | 33,705  |   |             | $ | (464,138   | )                               |  | $ | 109,524 |   |  | $ | 861,592   | 
|                              |  |                                |           |  |              |   |       |              |  |   |                 |   |  |            |         |   |             |   |            |                                 |  |   |         |   |  |   |           | 

Other Operating Income (Expense)Net

Other operating expense of $23.8 million for 2010 primarily related to a $25.3 million loss recorded as a result of the transfer of our
interest in our Branded Cities business.

Other operating expense for 2009 was $8.2 million and primarily related to a loss of
$20.9 million on the sale of our taxi advertising business. The loss was partially offset by a $10.1 million gain on the sale of Americas and International assets.

Other operating income for 2008 was $15.8 million and was primarily due to a $2.6 million gain related to an asset exchange, a $4.0 million gain on the sale of property, and a $1.7 million gain on the
sale of International street furniture.

Interest Expense  Net (Including Interest on Debt with Clear Channel Communications)

Interest expense increased $65.8 million during 2010 compared to 2009. The increase was primarily attributable to the
issuance by our subsidiary, CCWH, of $2.5 billion aggregate principal amount of senior notes in December 2009, which bear interest at a fixed rate of 9.25% per annum. The senior notes were issued at a higher interest rate than the $2.5 billion
note to Clear Channel Communications, which was prepaid and retired in December 2009.

Interest expense for 2009 decreased
$7.5 million compared to 2008. The decrease was primarily due to a lower weighted average cost of debt of Clear Channel Communications during 2009.

Loss on Marketable Securities

The loss on marketable securities of
$6.5 million, $11.3 million, and $59.8 million for 2010, 2009 and 2008, respectively, primarily related to the impairment of Independent News & Media PLC (INM). The fair value of INM was below cost for an extended period of
time. As a result, we considered the guidance in ASC 320-10-S99 and reviewed the length of the time and the extent to which the market was less than cost and the financial condition and near-term prospects of the issuer. After this assessment, we
concluded that the impairment at each date was other than temporary and recorded non-cash impairment charges to our investment in INM, as noted above.

Equity in Earnings (Loss) of Nonconsolidated Affiliates

Equity in
loss of nonconsolidated affiliates of $9.9 million for 2010 includes an $8.3 million impairment related to an equity investment in our International segment. Equity in loss of nonconsolidated affiliates of $31.4 million for 2009 primarily related to
a $22.9 million impairment of equity investments in our International segment.



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Equity in earnings of nonconsolidated affiliates for 2008 increased $64.3 million compared
to 2007. In the first quarter of 2008, we sold our 50% interest in Clear Channel Independent, a South African outdoor advertising company, and recognized a gain of $75.6 million. This gain was partially offset by a $9.0 million impairment charge to
one of our International equity investments recorded during the third quarter of 2008.

Other Income (Expense)  Net

Other expense recorded for the years ended December 31, 2010 and 2009 primarily related to foreign exchange
transaction gains/losses on short-term intercompany accounts.

Other income of $25.5 million for 2008 primarily related to net
foreign exchange transaction gains on short-term intercompany accounts of $19.8 million. In addition, we recorded income of $8.0 million related to dividends received from an International investment.

Income Taxes

Our
operations are included in a consolidated income tax return filed by Clear Channel Communications for pre-merger periods and CC Media Holdings for post-merger periods. However, for our financial statements, our provision for income taxes was
computed as if we file separate consolidated Federal income tax returns with our subsidiaries.

Our effective tax rate for
2010 was (39.4%), primarily due to the fact that we were unable to benefit from tax losses in certain foreign jurisdictions due to the uncertainty of the ability to utilize those losses in future years. In addition, we recorded a valuation allowance
of $13.6 million in 2010 against deferred tax assets related to capital allowances in foreign jurisdictions due to the uncertainty of the ability to realize those assets in future periods.

Our effective tax rate for 2009 was 14.6% primarily due to the goodwill impairment charge, which is not deductible for tax purposes,
along with our inability to benefit from tax losses in certain foreign jurisdictions as discussed above.

Our effective tax
rate for 2008 was 7.2%. The primary reason for the reduction in the effective tax rate from 2007 was the result of the impairment charge recorded in 2008 discussed in more detail above. In addition, we did not record tax benefits on certain tax
losses in our foreign operations due to the uncertainty of the ability to utilize those tax losses in the future.

Americas Results of
Operations

Disposition of Taxi Business

On December 31, 2009, our subsidiary, CCOI, disposed of Clear Channel Taxi Media, LLC (Taxis), our taxi advertising business. For the year ended December 31, 2009, Taxis contributed
$41.5 million in revenue, $39.8 million in direct operating expenses and $10.5 million in SG&A expenses.

Our Americas
operating results were as follows:



|                              |  |                          |           |  |                 |   |           |                  |  |   |                 |  |                 |      |  |      
|----------------------------- |  | ------------------------ | --------- |  | --------------- | - | --------- | ---------------- |  | - | --------------- |  | --------------- | ---- |  | -----
|(In thousands)                |  | Years Ended December 31, |           |  | % Change       
|                              |  | 2010Post-Merger          |           |  | 2009Post-Merger |   |           | 2008    Combined |  |   | 2010 v.    2009 |  | 2009 v.    2008
|Revenue                       |  | $                        | 1,290,014 |  |                 | $ | 1,238,171 |                  |  | $ | 1,430,258       |  |                 | 4%   |  | (13%)
|Direct operating expenses     |  |                          | 588,592   |  |                 |   | 608,078   |                  |  |   | 647,526         |  |                 | (3%) |  | (6%) 
|SG&A expenses                 |  |                          | 218,776   |  |                 |   | 202,196   |                  |  |   | 252,889         |  |                 | 8%   |  | (20%)
|Depreciation and amortization |  |                          | 209,127   |  |                 |   | 210,280   |                  |  |   | 207,633         |  |                 | (1%) |  | 1%   
|                              |  |                          |           |  |                 |   |           |                  |  |   |                 |  |                 |      |  |      
|Operating income              |  | $                        | 273,519   |  |                 | $ | 217,617   |                  |  | $ | 322,210         |  |                 | 26%  |  | (32%)
|                              |  |                          |           |  |                 |   |           |                  |  |   |                 |  |                 |      |  |      



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2010 v. 2009

Our Americas revenue increased $51.9 million during 2010 compared to 2009 as a result of revenue growth across most of our advertising inventory, particularly digital. The increase was driven by increases
in both occupancy and rate. Partially offsetting the revenue increase was the decrease in revenue related to the sale of Taxis.

Our Americas direct operating expenses decreased $19.5 million during 2010 compared to 2009. The decline in direct operating expenses was
due to the disposition of Taxis, partially offset by a $20.2 million increase in site-lease expenses associated with the increase in revenue. SG&A expenses increased $16.6 million as a result of a $6.3 million increase primarily related to the
unfavorable impact of litigation, a $4.7 million increase in consulting costs and a $6.2 million increase primarily due to bonus and commission expenses associated with the increase in revenue, partially offset by the disposition of Taxis.

2009 v. 2008

Our Americas revenue decreased $192.1 million in 2009 compared to 2008 primarily driven by declines in bulletin, poster and transit revenues due to cancellations and non-renewals from larger national
advertisers resulting from the overall weakness in advertising and the economy. The decline in bulletin, poster and transit revenues was also impacted by a decline in rate compared to 2008.

Our Americas direct operating expenses decreased $39.4 million in 2009 compared to 2008, primarily from a $25.3 million decrease in
site-lease expenses associated with cost savings from the restructuring program and the decline in revenues. This decrease was partially offset by $5.7 million related to the restructuring program. Our SG&A expenses decreased $50.7 million in
2009 compared to 2008, primarily from a $26.0 million decline in compensation expense associated with the decline in revenue and cost savings from the restructuring program, and a $16.2 million decline in bad debt expense primarily as a result of
receipts of previously-reserved collections and an improvement in the agings of our accounts receivable during 2009.

International Results
of Operations

Our International operating results were as follows:



|                              |  |                          |           |  |                 |   |           |              |  |   |             |  |             |       |  |      
|----------------------------- |  | ------------------------ | --------- |  | --------------- | - | --------- | ------------ |  | - | ----------- |  | ----------- | ----- |  | -----
|(In thousands)                |  | Years Ended December 31, |           |  | % Change       
|                              |  | 2010Post-Merger          |           |  | 2009Post-Merger |   |           | 2008Combined |  |   | 2010 v.2009 |  | 2009 v.2008
|Revenue                       |  | $                        | 1,507,980 |  |                 | $ | 1,459,853 |              |  | $ | 1,859,029   |  |             | 3%    |  | (21%)
|Direct operating expenses     |  |                          | 971,380   |  |                 |   | 1,017,005 |              |  |   | 1,234,610   |  |             | (4%)  |  | (18%)
|SG&A expenses                 |  |                          | 275,880   |  |                 |   | 282,208   |              |  |   | 353,481     |  |             | (2%)  |  | (20%)
|Depreciation and amortization |  |                          | 204,461   |  |                 |   | 229,367   |              |  |   | 264,717     |  |             | (11%) |  | (13%)
|                              |  |                          |           |  |                 |   |           |              |  |   |             |  |             |       |  |      
|Operating income (loss)       |  | $                        | 56,259    |  |                 | $ | (68,727   | )            |  | $ | 6,221       |  |             |       |  |      
|                              |  |                          |           |  |                 |   |           |              |  |   |             |  |             |       |  |      

2010 v. 2009

Our International outdoor revenue increased $48.1 million during 2010 compared to 2009, primarily as a result of revenue growth from street furniture across most countries, partially offset by the exit
from the businesses in Greece and India. Foreign exchange movements negatively impacted revenue by $10.3 million.

Direct
operating expenses in our International segment decreased $45.6 million during 2010 compared to 2009, primarily as a result of a $20.4 million decrease in expenses incurred in connection with our restructuring program and a $15.6 million decline in
site-lease expenses associated with cost savings from our restructuring program. Also contributing to the decreased expenses was the exit from the businesses in Greece and India and an $8.2 million decrease from movements in foreign exchange.
SG&A expenses decreased $6.3 million during 2010 compared to 2009, primarily as a result of a $5.4 million decrease in business tax related to a change in French tax law and a $2.3 million decrease from movements in foreign exchange.



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Depreciation and amortization decreased $24.9 million during 2010 compared to 2009 primarily
as a result of assets that became fully amortized during 2009.

2009 v. 2008

Our International revenue decreased $399.2 million in 2009 compared to 2008 as a result of the weak global economy, as well as movements
in foreign exchange, which contributed $118.5 million of the decrease. The revenue decline occurred across most countries, with the most significant decline in France of $75.5 million due to weak advertising demand. Other countries with
significant declines include the U.K. and Italy, which declined $30.4 million and $28.3 million, respectively, due to weak advertising markets.

Direct operating expenses decreased $217.6 million in our International segment in 2009 compared to 2008, in part due to a decrease of $85.6 million from movements in foreign exchange. The remaining
decrease in direct operating expenses was primarily attributable to a $146.4 million decline in site lease expenses partially attributable to cost savings from the restructuring program and partially as a result of lower revenues. The decrease in
direct operating expenses was partially offset by $12.8 million related to the restructuring program and the decline in revenue. SG&A expenses decreased $71.3 million in 2009 compared to 2008, primarily from $23.7 million related to movements in
foreign exchange, $34.3 million related to a decline in compensation expense and a $25.8 million decrease in administrative expenses, both partially attributable to cost savings from the restructuring program and the decline in revenue.

Depreciation and amortization decreased $35.4 million in our International segment in 2009 compared to 2008, primarily related to a $43.2
million decrease in depreciation expense associated with the impairment of assets during the fourth quarter of 2008 and a $20.6 million decrease from movements in foreign exchange. The decrease was partially offset by $31.9 million related to
additional amortization associated with the purchase accounting adjustments to the acquired intangible assets.

Reconciliation of Segment
Operating Income (Loss) to Consolidated Operating Income (Loss)



|                                       |  |                          |          |   |                 |   |          |              |  |   |            |  
|-------------------------------------- |  | ------------------------ | -------- | - | --------------- | - | -------- | ------------ |  | - | ---------- | -
|(In thousands)                         |  | Years Ended December 31, |         
|                                       |  | 2010Post-Merger          |          |   | 2009Post-Merger |   |          | 2008Combined | 
|Americas                               |  | $                        | 273,519  |   |                 | $ | 217,617  |              |  | $ | 322,210    |  
|International                          |  |                          | 56,259   |   |                 |   | (68,727  | )            |  |   | 6,221      |  
|Impairment charges                     |  |                          | (11,493  | ) |                 |   | (890,737 | )            |  |   | (3,217,649 | )
|Corporate(1)                           |  |                          | (107,596 | ) |                 |   | (65,247  | )            |  |   | (71,045    | )
|Other operating income (expense)  net |  |                          | (23,753  | ) |                 |   | (8,231   | )            |  |   | 15,848     |  
|                                       |  |                          |          |   |                 |   |          |              |  |   |            |  
|Consolidated operating income (loss)   |  | $                        | 186,936  |   |                 | $ | (815,325 | )            |  | $ | (2,944,415 | )
|                                       |  |                          |          |   |                 |   |          |              |  |   |            |  



|(1) | Corporate expenses include expenses related to our Americas and International operating segments.
|--- | -------------------------------------------------------------------------------------------------

Share-Based Compensation

As of December 31, 2010, there was $17.2 million of unrecognized compensation cost, net of estimated forfeitures, related to unvested
share-based compensation arrangements that will vest based on service conditions. This cost is expected to be recognized over a weighted average period of approximately two years. In addition, as of December 31, 2010, there was $0.3 million of
unrecognized compensation cost, net of estimated forfeitures, related to unvested share-based compensation arrangements that will vest based on performance and service conditions. This cost will be recognized when it becomes probable that the
performance condition will be satisfied.



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The following table indicates non-cash compensation costs related to share-based payments
for the years ended December 31, 2010, 2009 and 2008, respectively:



|                                       |  |                          |        |  |                 |   |        |                |  |   |        | 
|-------------------------------------- |  | ------------------------ | ------ |  | --------------- | - | ------ | -------------- |  | - | ------ | 
|(In thousands)                         |  | Years Ended December 31, |       
|                                       |  | 2010Post-Merger          |        |  | 2009Post-Merger |   |        | 2008  Combined | 
|Americas                               |  | $                        | 9,207  |  |                 | $ | 7,977  |                |  | $ | 8,465  | 
|International                          |  |                          | 2,746  |  |                 |   | 2,412  |                |  |   | 2,167  | 
|Corporate                              |  |                          | 384    |  |                 |   | 1,715  |                |  |   | 957    | 
|                                       |  |                          |        |  |                 |   |        |                |  |   |        | 
|Total share-based compensation expense |  | $                        | 12,337 |  |                 | $ | 12,104 |                |  | $ | 11,589 | 
|                                       |  |                          |        |  |                 |   |        |                |  |   |        | 

LIQUIDITY AND CAPITAL RESOURCES

Clear Channel Communications Merger

Clear Channel
Communications capitalization, liquidity and capital resources substantially changed due to the consummation of its merger on July 30, 2008. Upon the closing of the merger, Clear Channel Communications incurred additional debt and became
highly leveraged. We are not borrowers or guarantors under Clear Channel Communications credit agreements other than for direct borrowings by certain of our International subsidiaries pursuant to the $150.0 million sub-limit included in Clear
Channel Communications $2.0 billion revolving credit facility and we are not a guarantor of any of Clear Channel Communications debt. The obligations of these International subsidiaries that are borrowers under the revolving credit
facility are guaranteed by certain of our material wholly-owned subsidiaries, and secured by substantially all of the assets of such borrowers and guarantors, subject to permitted liens and other exceptions. As of December 31, 2010, we had no
outstanding borrowings under the $150.0 million sub-limit facility as Clear Channel Communications had already borrowed against the entire capacity.

The interest rate on outstanding balances under the revolving credit facility is based upon LIBOR or, for Euro denominated borrowings, EURIBOR, plus, in each case, a margin. See discussion below under
Liquidity and Capital Resources  Sources of Capital  Bank Credit Facility. A deterioration in the financial condition of Clear Channel Communications or borrowings by Clear Channel Communications under the $150.0 million
sub-limit could also further increase our borrowing costs or impair our access to the capital markets because of our reliance on Clear Channel Communications for availability under this revolving credit facility.

We have a revolving promissory note issued by Clear Channel Communications to us in the amount of $383.8 million as of December 31,
2010 described more fully in our Liquidity and Capital Resources  Sources of Capital section. We are an unsecured creditor of Clear Channel Communications with respect to the revolving promissory note.

Also, so long as Clear Channel Communications maintains a significant interest in us, pursuant to the Master Agreement between Clear
Channel Communications and us, Clear Channel Communications will have the option to limit our ability to incur debt or issue equity securities, among other limitations, which could adversely affect our ability to meet our liquidity needs.



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Cash Flows

The following table summarizes our historical cash flows:



|                             |  |                         |          |   |                 |   |          |              |  |   |          |  
|---------------------------- |  | ----------------------- | -------- | - | --------------- | - | -------- | ------------ |  | - | -------- | -
|(In thousands)               |  | Year Ended December 31, |         
|                             |  | 2010Post-Merger         |          |   | 2009Post-Merger |   |          | 2008Combined | 
|Cash provided by (used for): |  |                         |          |   |                 |   |          |              |  |   |          |  
|Operating activities         |  | $                       | 525,217  |   |                 | $ | 441,264  |              |  | $ | 603,624  |  
|Investing activities         |  | $                       | (198,705 | ) |                 | $ | (162,864 | )            |  | $ | (425,844 | )
|Financing activities         |  | $                       | (314,463 | ) |                 | $ | 231,656  |              |  | $ | (232,840 | )

Operating Activities

2010

The increase in cash flows from operations in 2010 compared to 2009 was primarily driven by improved profitability, including a 4% increase in revenue and a 3% decrease in direct operating and SG&A
expenses. Our cash paid for interest increased $81.1 million primarily due to the December 2009 issuance of $2.5 billion aggregate principal amount of senior notes at a higher rate than the $2.5 billion note to Clear Channel Communications, which
was prepaid and retired in December 2009. Partially offsetting the increased interest was the receipt of $51.0 million of Federal income tax refunds during the third quarter of 2010.

2009

The decline in cash flow from operations in 2009 compared to 2008 was primarily driven by an 18% decline in consolidated revenues
associated with the weak economy and challenging advertising markets. Our net loss adjusted for non-cash items of $1.3 billion provided positive cash flows of $411.8 million. Changes in working capital provided an additional $29.4 million in
operating cash flows for 2009.

2008

In 2008, our net loss adjusted for non-cash items of $3.5 billion provided positive cash flows of $610.0 million. Changes in working capital negatively impacted operating cash flows for 2008 by $6.4
million.

Investing Activities

2010

Cash used for investing activities during 2010 primarily reflected
capital expenditures of $195.3 million, partially offset by proceeds of $7.8 million from the sale of International and Americas assets. We spent $96.7 million in our Americas segment primarily related to the construction of new billboards and $98.6
million in our International segment primarily related to new billboard and street furniture contracts and renewals of existing contracts.

2009

In 2009, we spent $84.4 million in our Americas segment for the
purchase of property, plant and equipment mostly related to the construction of new billboards and $91.5 million in our International segment for the purchase of property, plant and equipment related to new billboard and street furniture contracts
and renewals of existing contracts. We also received proceeds of $11.3 million from the sale of International assets and $6.8 million from the sale of Americas assets.

2008

We spent $175.8 million in our Americas segment for the purchase of
property, plant and equipment mostly related to the construction of new billboards. We spent $182.5 million in our International segment for the purchase of property, plant and equipment related to new billboard and street furniture contracts and
renewals of existing contracts. Our Americas segment paid $55.1 million for the acquisition of advertising structures and the



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final earnout payments for Interspace. Our International segment paid $41.4 million primarily related to the acquisition of additional equity interests in outdoor companies and the acquisition of
advertising structures. We also received proceeds of $41.5 million from asset sales, $34.2 million of which was from the disposal of land and buildings in our International segment.

Financing Activities

2010

Cash used for financing activities of $314.5 million for the year ended December 31, 2010 primarily reflects payments on credit
facilities and long-term debt of $47.1 million and $13.2 million, respectively, and net transfers to Clear Channel Communications of $260.5 million. The net transfers of cash to Clear Channel Communications represent the activity in the Due
from/to Clear Channel Communications account. This activity primarily relates to working capital.

2009

Cash provided by financing activities of $231.7 million for 2009 primarily reflects the $2.5 billion proceeds from
issuance of senior notes in addition to the $500.0 million repayment by Clear Channel Communications on the Due from Clear Channel Communications account offset by the prepayment and retirement of the $2.5 billion intercompany note due
to Clear Channel Communications. In addition, we purchased the remaining 15% interest in our fully consolidated subsidiary, Paneles Napsa S.A., for $13.0 million, and acquired an additional 5% interest in our fully consolidated subsidiary, Clear
Channel Jolly Pubblicita SPA, for $12.1 million.

2008

Cash used in financing activities of $232.8 million for 2008 reflected a net reduction in debt and credit facilities of $67.6 million and
net transfers of cash to Clear Channel Communications of $169.2 million. The net transfers of cash to Clear Channel Communications represent the activity in the Due from/to Clear Channel Communications account. This activity primarily
relates to working capital and settlement of interest on the revolving promissory notes and the $2.5 billion note payable to Clear Channel Communications.

Anticipated Cash Requirements

Our primary source of liquidity is cash on
hand and cash flow from operations. Based on our current and anticipated levels of operations and conditions in our markets, we believe that cash on hand, cash flows from operations and borrowings under the revolving promissory note with Clear
Channel Communications will enable us to meet our working capital, capital expenditure, debt service and other funding requirements for at least the next 12 months. In addition, we expect to be in compliance with the covenants governing our
indebtedness in 2011. However, our anticipated results are subject to significant uncertainty and there can be no assurance that we will be able to maintain compliance with these covenants. In addition, our ability to comply with these covenants may
be affected by events beyond our control, including prevailing economic, financial and industry conditions.

Furthermore, in
its Annual Report on Form 10-K filed with the SEC on February 14, 2011, Clear Channel Communications stated that it expects to be in compliance with the covenants in its material financing agreements in 2011. Clear Channel Communications
similarly stated in such Annual Report that its anticipated results are also subject to significant uncertainty and there can be no assurance that actual results will be in compliance with the covenants. Moreover, Clear Channel Communications stated
in such Annual Report that its ability to comply with the covenants in its material financing agreements may be affected by events beyond its control, including prevailing economic, financial and industry conditions. As discussed therein, the breach
of any covenants set forth in Clear Channel Communications financing agreements would result in a default thereunder, and an event of default would permit the lenders under a defaulted financing agreement to declare all indebtedness thereunder
to be due and payable prior to maturity. Moreover, as discussed therein, the lenders under the revolving credit facility under Clear Channel Communications secured credit facilities would have the option to terminate their commitments to make
further extensions of revolving credit thereunder. In addition, Clear Channel Communications stated in such Annual Report that if Clear Channel Communications is unable to repay its obligations under any secured credit facility, the lenders could
proceed against any assets that were pledged to secure such facility. Finally, Clear Channel Communications stated in such Annual Report that a default or acceleration under any of its material financing agreements could cause a default under other
obligations that are subject to cross-default and cross-acceleration provisions.



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For so long as Clear Channel Communications maintains significant control over us, a
deterioration in the financial condition of Clear Channel Communications could have the effect of increasing our borrowing costs or impairing our access to capital markets. As of December 31, 2010, Clear Channel Communications had $1.9 billion
recorded as Cash and cash equivalents on its consolidated balance sheets.

We frequently evaluate strategic
opportunities both within and outside our existing lines of business. We expect from time to time to pursue additional acquisitions and may decide to dispose of certain businesses. These acquisitions or dispositions could be material.

Our ability to fund our working capital needs, debt service and other obligations depends on our future operating performance and cash
flow. If our future operating performance does not meet our expectations or our plans materially change in an adverse manner or prove to be materially inaccurate, we may need additional financing. We may not be able to secure any such additional
financing on terms favorable to us or at all.

Sources of Capital

As of December 31, 2010 and 2009, we had the following indebtedness outstanding, cash and cash equivalents and amounts due from Clear
Channel Communications:



|                                                                                                                                                                                                                                             |  |                         |         |  |                 |   |         | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | ------- |  | --------------- | - | ------- | 
|(In millions)                                                                                                                                                                                                                                |  | Year Ended December 31, |        
|                                                                                                                                                                                                                                             |  | 2010Post-Merger         |         |  | 2009Post-Merger |  
|CCWH Senior Notes                                                                                                                                                                                                                            |  | $                       | 2,500.0 |  |                 | $ | 2,500.0 | 
|Bank credit facility ($150.0 million sub-limit within Clear Channel Communications $2.0 billion facility, $150.0 million
and $120.0 million of which was drawn by Clear Channel Communications at December 31, 2010 and 2009, respectively) |  |                         |        |  |                 |   | 30.0    | 
|Other debt                                                                                                                                                                                                                                   |  |                         | 63.8    |  |                 |   | 78.9    | 
|                                                                                                                                                                                                                                             |  |                         |         |  |                 |   |         | 
|Total debt                                                                                                                                                                                                                                   |  |                         | 2,563.8 |  |                 |   | 2,608.9 | 
|Less: Cash and cash equivalents                                                                                                                                                                                                              |  |                         | 624.0   |  |                 |   | 609.4   | 
|Less: Due from Clear Channel Communications                                                                                                                                                                                                  |  |                         | 383.8   |  |                 |   | 123.3   | 
|                                                                                                                                                                                                                                             |  |                         |         |  |                 |   |         | 
|                                                                                                                                                                                                                                             |  | $                       | 1,556.0 |  |                 | $ | 1,876.2 | 
|                                                                                                                                                                                                                                             |  |                         |         |  |                 |   |         | 

We may from time to time repay our outstanding debt or seek to purchase our outstanding equity securities.
Such transactions, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

Bank Credit Facility ($150.0 million sub-limit within Clear Channel Communications $2.0 billion revolving credit facility)

In addition to cash flows from operations, another potential source of liquidity to us is through borrowings under a
$150.0 million sub-limit included in Clear Channel Communications multicurrency $2.0 billion revolving credit facility with a maturity in July 2014. Certain of our International subsidiaries may borrow under the sub-limit to the extent Clear
Channel Communications has not already borrowed against this capacity and is in compliance with its covenants under the credit facility. The obligations of these International subsidiaries that are borrowers under the revolving credit facility are
guaranteed by certain of our material wholly-owned subsidiaries, and secured by substantially all of the assets of such borrowers and guarantors, subject to permitted liens and other exceptions. On February 6, 2009, Clear Channel Communications
borrowed the remaining availability under its $2.0 billion revolving credit facility, including the remaining availability under the $150.0 million sub-limit. As of December 31, 2010, we had no outstanding borrowings under the $150.0 million
sub-limit facility as Clear Channel Communications had already borrowed against the entire capacity.



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Promissory Notes with Clear Channel Communications

As part of the day-to-day cash management services provided by Clear Channel Communications, we maintain accounts that represent net
amounts due to or from Clear Channel Communications, which is recorded as Due from/to Clear Channel Communications on the consolidated balance sheet. The accounts represent our revolving promissory note issued by us to Clear Channel
Communications and the revolving promissory note issued by Clear Channel Communications to us in the face amount of $1.0 billion, or if more or less than such amount, the aggregate unpaid principal amount of all advances. The accounts accrue
interest and are generally payable on demand. Prior to the amendment of the revolving promissory notes in December 2009, interest on the revolving promissory note owed by us accrued on the daily net negative cash position based upon LIBOR plus a
margin. Interest on the revolving promissory note owed by Clear Channel Communications accrued on the daily net positive cash position based upon the average one-month generic treasury bill rate. In connection with the issuance of the CCWH Notes
described below, we and Clear Channel Communications modified the terms of the revolving promissory notes (recorded as Due from/to Clear Channel Communications account) to extend the maturity of each revolving promissory note to coincide with the
maturity date of the CCWH Notes. In addition, the terms were modified to change the interest rate on each revolving promissory note to equal the interest rate on the CCWH Notes. Included in the accounts are the net activities resulting from
day-to-day cash management services provided by Clear Channel Communications. As a part of these services, we maintain collection bank accounts swept daily into accounts of Clear Channel Communications (after satisfying the funding requirements of
the Trustee Account). In return, Clear Channel Communications funds our controlled disbursement accounts as checks or electronic payments are presented for payment. Our claim in relation to cash transferred from our concentration account is on an
unsecured basis and is limited to the balance of the Due from Clear Channel Communications account. If Clear Channel Communications were to become insolvent, we would be an unsecured creditor of Clear Channel Communications with respect
to the revolving promissory note issued by Clear Channel Communications to us. At December 31, 2010 and 2009, the asset recorded in Due from Clear Channel Communications on the consolidated balance sheet was $383.8 million and
$123.3 million, respectively. The net interest income for the years ended December 31, 2010, 2009 and 2008 was $19.5 million, $0.7 million and $3.5 million, respectively. At December 31, 2010, the fixed interest rate on the Due from
Clear Channel Communications account was 9.25%, which represents the interest rate on the CCWH Notes as described above. At December 31, 2010, we had no borrowings under the revolving promissory note to Clear Channel Communications.

Unlike the management of cash from our U.S. based operations, the amount of cash, if any, which is transferred from our
foreign operations to Clear Channel Communications is determined on a basis mutually agreeable to us and Clear Channel Communications, and not on a pre-determined basis. In arriving at such mutual agreement, the reasonably foreseeable cash needs of
our foreign operations are evaluated before a cash amount is considered as an excess or surplus amount for transfer to Clear Channel Communications.

As of December 31, 2008 we had a note in the original principal amount of $2.5 billion to Clear Channel Communications which was prepayable in whole at any time, or in part from time to time. In
December 2009, we made voluntary prepayments on the note in the amount of the total outstanding balance and subsequently retired the Debt with Clear Channel Communications. The interest rate on the $2.5 billion note was 5.7% prior to its
retirement.

Our working capital requirements and capital for general corporate purposes, including acquisitions and capital
expenditures, may be provided to us by Clear Channel Communications, in its sole discretion, pursuant to a revolving promissory note issued by us to Clear Channel Communications. Without the opportunity to obtain financing from Clear Channel
Communications, we may need to obtain additional financing from banks, or through public offerings or private placements of debt, strategic relationships or other arrangements at some future date. As stated above, we may be unable to successfully
obtain additional debt or equity financing on satisfactory terms or at all.



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As long as Clear Channel Communications maintains a significant interest in us, pursuant to
the Master Agreement between Clear Channel Communications and us, Clear Channel Communications will have the option to limit our ability to incur debt or issue equity securities, among other limitations, which could adversely affect our ability to
meet our liquidity needs. Under the Master Agreement with Clear Channel Communications, we are limited in our borrowing from third parties to no more than $400.0 million (including borrowings under the $150.0 million sub-limit of Clear Channel
Communications $2.0 billion revolving credit facility).

Clear Channel Worldwide Holdings Senior Notes

Our subsidiary, CCWH, has outstanding $500.0 million aggregate principal amount of Series A Senior Notes due 2017 (the Series A
Notes) and $2.0 billion aggregate principal amount of Series B Senior Notes due 2017 (the Series B Notes and together with the Series A Notes, the CCWH Notes). The Notes are guaranteed by us, CCOI, and certain of our
other direct and indirect subsidiaries.

The CCWH Notes bear interest on a daily basis and contain customary provisions,
including covenants requiring us to maintain certain levels of credit availability and limitations on incurring additional debt.

The CCWH Notes are senior obligations that rank pari passu in right of payment to all unsubordinated indebtedness of CCWH and the guarantees of the CCWH Notes rank pari passu in right of payment to all
unsubordinated indebtedness of the guarantors.

The indentures governing the CCWH Notes require us to maintain at least $100
million in cash or other liquid assets or have cash available to be borrowed under committed credit facilities consisting of (i) $50.0 million at the issuer and guarantor entities (principally the Americas outdoor segment) and (ii) $50.0
million at the non-guarantor subsidiaries (principally the International outdoor segment) (together the Liquidity Amount), in each case under the sole control of the relevant entity. In the event of a bankruptcy, liquidation,
dissolution, reorganization, or similar proceeding of Clear Channel Communications for the period thereafter that is the shorter of such proceeding and 60 days, the Liquidity Amount shall be reduced to $50.0 million, with a $25.0 million requirement
at the issuer and guarantor entities and a $25.0 million requirement at the non-guarantor subsidiaries.

In addition, interest
on the CCWH Notes accrues daily and is payable into an account established by the trustee for the benefit of the bondholders (the Trustee Account). Failure to make daily payment on any day does not constitute an event of default so long
as (a) no payment or other transfer by us or any of our subsidiaries shall have been made on such day under the cash management sweep with Clear Channel Communications, Inc. and (b) on each semiannual interest payment date the aggregate
amount of funds in the Trustee Account is equal to at least the aggregate amount of accrued and unpaid interest on the CCWH Notes.

The indenture governing the Series A Notes contains covenants that limit our and our restricted subsidiaries ability to, among other things:



| |  |  | incur or guarantee additional debt to persons other than Clear Channel Communications and its subsidiaries or issue certain preferred stock;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | create liens on our restricted subsidiaries assets to secure such debt;
| | - |  | -----------------------------------------------------------------------



| |  |  | create restrictions on the payment of dividends or other amounts to ourselves from our restricted subsidiaries that are not guarantors of the notes;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | enter into certain transactions with affiliates;
| | - |  | ------------------------------------------------



| |  |  | merge or consolidate with another person, or sell or otherwise dispose of all or substantially all of our assets; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | sell certain assets, including capital stock of our subsidiaries, to persons other than Clear Channel Communications and its subsidiaries.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------

The indenture governing the Series A Notes does not include limitations on dividends, distributions,
investments or asset sales.



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The indenture governing the Series B Notes contains covenants that limit our and our
restricted subsidiaries ability to, among other things:



| |  |  | incur or guarantee additional debt or issue certain preferred stock;
| | - |  | --------------------------------------------------------------------



| |  |  | redeem, repurchase or retire our subordinated debt;
| | - |  | ---------------------------------------------------



| |  |  | make certain investments;
| | - |  | -------------------------



| |  |  | create liens on our or our restricted subsidiaries assets to secure debt;
| | - |  | --------------------------------------------------------------------------



| |  |  | create restrictions on the payment of dividends or other amounts to ourselves from our restricted subsidiaries that are not guarantors of the Notes;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | enter into certain transactions with affiliates;
| | - |  | ------------------------------------------------



| |  |  | merge or consolidate with another person, or sell or otherwise dispose of all or substantially all of our assets;
| | - |  | -----------------------------------------------------------------------------------------------------------------



| |  |  | sell certain assets, including capital stock of our subsidiaries;
| | - |  | -----------------------------------------------------------------



| |  |  | designate our subsidiaries as unrestricted subsidiaries;
| | - |  | --------------------------------------------------------



| |  |  | pay dividends, redeem or repurchase capital stock or make other restricted payments; and
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | purchase or otherwise effectively cancel or retire any of the Series B Notes if after doing so the ratio of (a) the outstanding aggregate
principal amount of the Series A Notes to (b) the outstanding aggregate principal amount of the Series B Notes shall be greater than 0.250. This stipulation ensures, among other things, that as long as the Series A Notes are outstanding, the
Series B Notes are outstanding.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Series A Notes indenture and the Series B Notes indenture restrict our
ability to incur additional indebtedness but permit us to incur additional indebtedness based on an incurrence test. In order to incur additional indebtedness under this test, our debt to adjusted EBITDA ratios (as defined by the indentures) must be
lower than 6.5:1 and 3.25:1 for total debt and senior debt, respectively. The indentures contain certain other exceptions that allow us to incur additional indebtedness. The Series B Notes indenture also permits us to pay dividends from the proceeds
of indebtedness or the proceeds from asset sales if our debt to adjusted EBITDA ratios (as defined by the indenture) are lower than 6.0:1 and 3.0:1 for total debt and senior debt, respectively. The Series A Notes indenture does not limit our ability
to pay dividends. The Series B Notes indenture contains certain exceptions that allow us to incur additional indebtedness and pay dividends, including a $500 million exception for the payment of dividends. We were in compliance with these covenants
as of December 31, 2010.

Consolidated leverage, defined as total debt divided by EBITDA for the preceding four quarters
was 3.5:1 at December 31, 2010, and senior leverage, defined as senior debt divided by EBITDA for the preceding four quarters was also 3.5:1 at December 31, 2010. Our adjusted EBITDA of $741.6 million is calculated as operating income
(loss) before depreciation, amortization, impairment charges and other operating income (expense)  net, plus non-cash compensation, and is further adjusted for certain items, including: (i) an increase for expected cost savings (limited
to $58.8 million in any twelve month period) of $12.5 million; (ii) an increase of $44.7 million for non-cash items; (iii) an increase of $24.9 million related to expenses incurred associated with our cost savings program; and (iv) an
increase of $11.4 million for various other items.

Prior to the date of the closing of the CCWH Notes offering, we made a
demand for and received repayment of $500.0 million on the Due from Clear Channel Communications account.

Following such repayment, we contributed $500.0 million to the capital of CCOI, which used the proceeds received by it to prepay $500.0
million of the Debt with Clear Channel Communications account. Subsequent to this repayment, the outstanding balance of the Debt with Clear Channel Communications account was $2.0 billion.

A portion of the proceeds of the CCWH Notes offering were used to (i) pay the fees and expenses of the offering, (ii) fund
$50.0 million of the Liquidity Amount (the $50.0 million Liquidity Amount of the non-guarantor subsidiaries was satisfied) and (iii) make a voluntary prepayment of the remaining $2.0 billion outstanding balance (which is equal to the aggregate
principal amount of the Series B Notes) under the note due to Clear Channel Communications and subsequently retire the Debt with Clear Channel Communications, with the balance of the proceeds available for general corporate purposes.



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In connection with the offering, we and Clear Channel Communications modified the terms of
the revolving promissory notes (recorded as Due from/to Clear Channel Communications on the consolidated balance sheets) to extend the maturity of each revolving promissory note to coincide with the maturity date of the CCWH Notes. In
addition, the terms were modified to change the interest rate on each revolving promissory note to a fixed per annum rate equal to 9.25%.

Other debt

Other
debt consists primarily of loans with international banks. At December 31, 2010, approximately $63.8 million was outstanding as other debt.

Debt Covenants

The Clear Channel Communications $2.0 billion
revolving credit facility contains a significant financial covenant which requires Clear Channel Communications to comply on a quarterly basis with a financial covenant limiting the ratio of its consolidated secured debt, net of cash and cash
equivalents, to consolidated EBITDA for the preceding four quarters (maximum of 9.5:1). The financial covenant becomes more restrictive over time beginning in the second quarter of 2013. In its Annual Report on Form 10-K filed with the SEC on
February 14, 2011, Clear Channel Communications stated that it was in compliance with this covenant as of December 31, 2010.

In addition, we were in compliance with the covenants contained in the Series A Notes indenture and the Series B Notes indenture as of December 31, 2010.

Clear Channel Communications Refinancing Transactions

Clear Channel Communications announced on February 7, 2011 that it intends to offer, subject to market and customary conditions, $750 million in aggregate principal amount of priority guarantee notes
due 2021 (the Notes) in a private offering that is exempt from registration under the Securities Act of 1933, as amended. Clear Channel Communications intends to use the proceeds of the Notes together with cash on hand to repay $500
million of the indebtedness outstanding under its senior secured credit facilities, to repay at maturity $250 million in aggregate principal amount of its 6.25% senior notes due 2011, to pay fees and expenses incurred in connection with concurrent
amendments to its senior secured credit facilities and its receivables based credit facility, the receipt of which is a condition to completion of the offering, and to pay fees and expenses in connection with the offering.

The concurrent amendments to its senior secured credit facilities and its receivables based credit facility would, among other things,
permit Clear Channel Communications to request future extensions of the maturities of its senior secured credit facilities, provide Clear Channel Communications with greater flexibility in the use of its accordion provisions, provide Clear Channel
Communications with greater flexibility to incur new debt, provided that such new debt is used to pay down senior secured credit facility indebtedness, and provide greater flexibility for us and our subsidiaries to incur new debt (provided the
incurrence of that new debt is otherwise permitted to be incurred by such subsidiaries).

The Notes and related guarantees
will be offered only to qualified institutional buyers in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act and to persons outside of the United States in compliance with Regulation S under the
Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an
applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

This disclosure is for informational purposes only and shall not constitute an offer to sell nor the solicitation of an offer to buy the
Notes or any other securities. The Notes offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful. Any offers of the Notes will be made only by means of a private offering circular.



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Dispositions and Other

On October 15, 2010, we transferred our interest in our Branded Cities operations to our joint venture partner, The Ellman
Companies. We recognized a loss of $25.3 million in Other operating income (expense)  net related to this transfer.

During 2010, our International segment sold its outdoor advertising business in India, resulting in a loss of $3.7 million included in Other operating income (expense)  net.

During 2009, we sold international assets for $11.3 million resulting in a gain of $4.4 million in Other operating income (expense)
 net. In addition, we sold assets for $6.8 million in our Americas segment and recorded a gain of $4.9 million in Other operating income (expense)  net. We sold our taxi advertising business and recorded a loss of $20.9
million in our Americas segment included in Other operating income (expense) net.

During the first quarter
of 2008, we exchanged assets in one of our Americas markets for assets located in a different market and recognized a gain of $2.6 million in Other operating income  net. In addition, we sold our 50% interest in Clear Channel
Independent and recognized a gain of $75.6 million in Equity in earnings of nonconsolidated affiliates based on the fair value of the equity securities received.

Uses of Capital

Acquisitions

During 2009, our Americas segment paid $5.0 million primarily for the acquisition of land and buildings.

Purchases of Additional Equity Interests

During 2009, our Americas segment purchased the remaining 15% interest in our consolidated subsidiary, Paneles Napsa S.A., for $13.0 million and our International segment acquired an additional 5%
interest in our consolidated subsidiary, Clear Channel Jolly Pubblicita SPA, for $12.1 million.

Capital Expenditures

Our capital expenditures have consisted of the following:



|                           |  |                         |       |  |                 |   |       |              |  |   |       | 
|-------------------------- |  | ----------------------- | ----- |  | --------------- | - | ----- | ------------ |  | - | ----- | 
|(In millions)              |  | Year Ended December 31, |      
|                           |  | 2010Post-Merger         |       |  | 2009Post-Merger |   |       | 2008Combined | 
|Total capital expenditures |  | $                       | 195.3 |  |                 | $ | 176.0 |              |  | $ | 358.3 | 

Part of our long-term
strategy is to pursue the technology of digital displays, including flat screens, LCDs and LEDs, as alternatives to traditional methods of displaying our clients advertisements. We are currently installing these technologies in certain
markets. We believe cash flow from operations will be sufficient to fund these expenditures because we expect enhanced margins through: (i) lower cost of production as the advertisements will be digital and controlled by a central computer
network, (ii) decreased down time on displays because the advertisements will be digitally changed rather than manually posted paper or vinyl on the face of the display, and (iii) incremental revenue through more targeted and time specific
advertisements.

Commitments, Contingencies and Guarantees

We are currently involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued our estimate of the probable costs for resolution of those claims for which
the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement
strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in our assumptions or the effectiveness of our strategies related to these proceedings. Please see Item 3.
Legal Proceedings.



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Our short and long term cash requirements include minimum annual guarantees for our street
furniture contracts and operating leases. Noncancelable contracts and operating lease requirements are included in our direct operating expenses, which historically have been satisfied by cash flows from operations. For 2011, we are committed to
$394.6 million and $270.2 million for minimum annual guarantees and operating leases, respectively. Our long-term commitments for minimum annual guarantees, operating leases and capital expenditure requirements are included in Contractual and
Other Obligations, below.

Certain agreements relating to acquisitions provide for purchase price adjustments and other
future contingent payments based on the financial performance of the acquired company generally over a one to five year period. The aggregate of these contingent payments, if performance targets are met, would not significantly impact our financial
position or results of operations.

In addition to the scheduled maturities on CCWHs debt, we have future cash
obligations under various types of contracts. We lease office space, certain equipment and the majority of the land occupied by our advertising structures under long-term operating leases. Some of our lease agreements contain renewal options and
annual rental escalation clauses (generally tied to the consumer price index), as well as provisions for our payment of utilities and maintenance.

We have minimum franchise payments associated with noncancelable contracts that enable us to display advertising on such media as buses, trains, bus shelters and terminals. The majority of these contracts
contain rent provisions that are calculated as the greater of a percentage of the relevant advertising revenue or a specified guaranteed minimum annual payment.

The scheduled maturities of borrowings under our $2.5 billion Notes, other debt outstanding, future minimum rental commitments under noncancelable lease agreements, minimum payments under other
noncancelable contracts, capital expenditure commitments and other long-term obligations as of December 31, 2010, are as follows:



|                                               |  |                        |           |  |      |   |         |           |  |   |           |  |  |            |           |  |  |   |           | 
|---------------------------------------------- |  | ---------------------- | --------- |  | ---- | - | ------- | --------- |  | - | --------- |  |  | ---------- | --------- |  |  | - | --------- | 
|(In thousands)                                 |  | Payments Due by Period |          
|                                               |  | Total                  |           |  | 2011 |   |         | 2012-2013 |  |   | 2014-2015 |  |  | Thereafter |          
|Long-term Debt                                 |  |                        |           |  |      |   |         |           |  |   |           |  |  |            |           |  |  |   |           | 
|Clear Channel Worldwide Holdings Senior Notes: |  |                        |           |  |      |   |         |           |  |   |           |  |  |            |           |  |  |   |           | 
|9.25% Series A Senior Notes Due 2017           |  | $                      | 500,000   |  |      | $ |        |           |  | $ |          |  |  | $          |          |  |  | $ | 500,000   | 
|9.25% Series B Senior Notes Due 2017           |  |                        | 2,000,000 |  |      |   |        |           |  |   |          |  |  |            |          |  |  |   | 2,000,000 | 
|Other debt                                     |  |                        | 63,809    |  |      |   | 41,676  |           |  |   | 22,133    |  |  |            |          |  |  |   |          | 
|Interest payments on long-term debt(1)         |  |                        | 1,621,964 |  |      |   | 233,959 |           |  |   | 463,005   |  |  |            | 462,500   |  |  |   | 462,500   | 
|                                               |  |                        |           |  |     
|Non-cancelable contracts                       |  |                        | 1,824,104 |  |      |   | 394,632 |           |  |   | 521,306   |  |  |            | 380,189   |  |  |   | 527,977   | 
|Non-cancelable operating leases                |  |                        | 2,035,797 |  |      |   | 270,235 |           |  |   | 432,321   |  |  |            | 363,187   |  |  |   | 970,054   | 
|Capital expenditure commitments                |  |                        | 107,107   |  |      |   | 48,059  |           |  |   | 43,987    |  |  |            | 11,739    |  |  |   | 3,322     | 
|Unrecognized tax benefits(2)                   |  |                        | 49,503    |  |      |   | 2,855   |           |  |   |          |  |  |            |          |  |  |   | 46,648    | 
|Employment contracts                           |  |                        | 10,181    |  |      |   | 5,782   |           |  |   | 4,289     |  |  |            | 110       |  |  |   |          | 
|Other long-term obligations(3)                 |  |                        | 88,233    |  |      |   |        |           |  |   | 1,325     |  |  |            | 1,097     |  |  |   | 85,811    | 
|                                               |  |                        |           |  |      |   |         |           |  |   |           |  |  |            |           |  |  |   |           | 
|Total(4)                                       |  | $                      | 8,300,698 |  |      | $ | 997,198 |           |  | $ | 1,488,366 |  |  | $          | 1,218,822 |  |  | $ | 4,596,312 | 
|                                               |  |                        |           |  |      |   |         |           |  |   |           |  |  |            |           |  |  |   |           | 



| | (1) | Interest payments on long-term debt consist primarily of interest on the 9.25% CCWH Senior Notes.
| | --- | -------------------------------------------------------------------------------------------------

| | (2) | The non-current portion of the unrecognized tax benefits is included in the Thereafter column as we cannot reasonably estimate the timing or amounts of
additional cash payments, if any, at this time. For additional information, see Note 9 included in Item 8 of Part II of this Annual Report on Form 10-K.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | Other long-term obligations consist of $48.3 million related to asset retirement obligations recorded pursuant to ASC 410-20, which assumes the underlying assets will
be removed at some period over the next 50 years. Also included in the table is $34.6 million related to retirement plans and $5.3 million related to other long-term obligations with a specific maturity.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Excluded from the table is $117.0 million related to various obligations with no specific contractual commitment or maturity.
| | --- | -----------------------------------------------------------------------------------------------------------------------------



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Seasonality

Typically, both our Americas and International segments experience their lowest financial performance in the first quarter of the calendar year, with International historically experiencing a loss from
operations in that period. Our Americas segment historically experiences consistent performance for the remainder of the calendar year. Our International segment typically experiences its strongest performance in the second and fourth quarters of
the calendar year. We expect this trend to continue in the future.

Market Risk

We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates, equity security
prices and foreign currency exchange rates.

Equity Price Risk

The carrying value of our available-for-sale equity securities is affected by changes in their quoted market prices. It is estimated that
a 20% change in the market prices of these securities would change their carrying value at December 31, 2010 by $1.6 million and would change comprehensive income at December 31, 2010 by $1.0 million.

Foreign Currency Exchange Rate Risk

We have operations in countries throughout the world. Foreign operations are measured in their local currencies. As a result, our financial results could be affected by factors such as changes in foreign
currency exchange rates or weak economic conditions in the foreign markets in which we have operations. We believe we mitigate a small portion of our exposure to foreign currency fluctuations with a natural hedge through borrowings in currencies
other than the U.S. dollar. Our foreign operations reported a net loss of $18.0 million for the year ended December 31, 2010. We estimate a 10% change in the value of the U.S. dollar relative to foreign currencies would have adjusted
our net loss for the year ended December 31, 2010 by approximately $1.8 million.

Our earnings are also affected by
fluctuations in the value of the U.S. dollar as compared to foreign currencies as a result of our equity method investments in various countries. It is estimated that the result of a 10% fluctuation in the value of the dollar relative to these
foreign currencies at December 31, 2010 would change our equity in earnings of nonconsolidated affiliates by $1.0 million and would change our net income by approximately $0.6 million for the year ended December 31, 2010.

This analysis does not consider the implications that such currency fluctuations could have on the overall economic activity that could
exist in such an environment in the United States or the foreign countries or on the results of operations of these foreign entities.

Inflation

Inflation is a factor in the economies in which we do business and we continue to seek ways to mitigate its effect. Inflation has affected
our performance in terms of higher costs for wages, salaries and equipment. Although the exact impact of inflation is indeterminable, we believe we have offset these higher costs by increasing the effective advertising rates of most of our outdoor
display faces.



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New Accounting Pronouncements

In December 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
No. 2010-28, When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts. This ASU updates ASC Topic 350, IntangiblesGoodwill and Other,to amend the criteria for
performing Step 2 of the goodwill impairment test for reporting units with zero or negative carrying amounts and requires performing Step 2 if qualitative factors indicate that it is more likely than not that a goodwill impairment exists. The ASU is
effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. We do not currently have any reporting units with zero or negative carrying values.

In August 2010, the FASB issued ASU No. 2010-22, Accounting for Various TopicsTechnical Corrections to SEC Paragraphs.
This ASU amends various SEC paragraphs and became effective upon issuance. The adoption of ASU No. 2010-22 did not have a material impact on our financial position or results of operations.

In August 2010, the FASB issued ASU No. 2010-21, Accounting for Technical Amendments to Various SEC Rules and Schedules. This
ASU amends various SEC paragraphs pursuant to the issuance of Release No. 33-9026: Technical Amendments to Rules, Forms, Schedules and Codification of Financial Reporting Policies and became effective upon issuance. We adopted the provisions of
ASU 2010-21 upon issuance with no material impact to our financial position or results of operations.

In February 2010, the
FASB issued ASU 2010-09, Amendments to Certain Recognition and Disclosure Requirements. ASU 2010-09 updates ASC Topic 855, Subsequent Events. ASU 2010-09 removes the requirement to disclose the date through which an entity has
evaluated subsequent events. We adopted the provisions of ASU 2010-09 upon issuance with no material impact to our financial position or results of operations.

In January 2010, the FASB issued ASU No. 2010-06, Improving Disclosures about Fair Value Measurements. This update amends ASC Topic 820, Fair Value Measurements and Disclosures,to
require new disclosures for significant transfers in and out of Level 1 and Level 2 fair value measurements, disaggregation regarding classes of assets and liabilities, valuation techniques and inputs used to measure fair value for both recurring
and nonrecurring fair value measurements for Level 2 or Level 3. These disclosures are effective for the interim and annual reporting periods beginning after December 15, 2009. Additional new disclosures regarding the purchases, sales,
issuances and settlements in the roll forward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 beginning with the first interim period. We adopted certain of the relevant disclosure
provisions of ASU 2010-06 on January 1, 2010 and adopted certain other provisions on January 1, 2011.

Critical Accounting
Estimates

The preparation of our financial statements in conformity with U.S. generally accepted accounting principles
(GAAP) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amount of expenses during the reporting period. On an ongoing basis, we evaluate our estimates that are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The result
of these evaluations forms the basis for making judgments about the carrying values of assets and liabilities and the reported amount of expenses that are not readily apparent from other sources. Because future events and their effects cannot be
determined with certainty, actual results could differ from our assumptions and estimates, and such difference could be material. Our significant accounting policies are discussed in the notes to our consolidated financial statements included in
Item 8 of Part II of this Annual Report on Form 10-K. Management believes that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results, and they require
managements most difficult, subjective or complex judgments, resulting from the need to make estimates about the effect of matters that are inherently uncertain. The following narrative describes these critical accounting estimates, the
judgments and assumptions and the effect if actual results differ from these assumptions.



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Allowance for Doubtful Accounts

We evaluate the collectability of our accounts receivable based on a combination of factors. In circumstances where we are aware of a
specific customers inability to meet its financial obligations, we record a specific reserve to reduce the amounts recorded to what we believe will be collected. For all other customers, we recognize reserves for bad debt based on historical
experience of bad debts as a percent of revenue for each business unit, adjusted for relative improvements or deteriorations in the agings and changes in current economic conditions.

If our agings were to improve or deteriorate resulting in a 10% change in our allowance, we estimated that our bad debt expense for the
year ended December 31, 2010, would have changed by approximately $4.9 million and our net loss for the same period would have changed by approximately $3.0 million.

Long-lived Assets

Long-lived assets, such as property, plant and
equipment and definite-lived intangibles are reviewed for impairment when events and circumstances indicate that depreciable and amortizable long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those
assets are less than the carrying amounts of those assets. When specific assets are determined to be unrecoverable, the cost basis of the asset is reduced to reflect the current fair market value.

We use various assumptions in determining the current fair market value of these assets, including future expected cash flows, industry
growth rates and discount rates, as well as future salvage values. Our impairment loss calculations require management to apply judgment in estimating future cash flows, including forecasting useful lives of the assets and selecting the discount
rate that reflects the risk inherent in future cash flows.

If actual results are not consistent with our assumptions and
judgments used in estimating future cash flows and asset fair values, we may be exposed to future impairment losses that could be material to our results of operations.

Indefinite-lived Assets

Indefinite-lived assets are reviewed
annually for possible impairment using the direct valuation method as prescribed in ASC 805-20-S99. Under the direct valuation method, the estimated fair value of the indefinite-lived assets was calculated at the market level as prescribed by ASC
350-30-35. Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as a part of a going concern business, the buyer hypothetically obtains indefinite-lived intangible assets and builds a
new operation with similar attributes from scratch. Thus, the buyer incurs start-up costs during the build-up phase which are normally associated with going concern value. Initial capital costs are deducted from the discounted cash flows model which
results in value that is directly attributable to the indefinite-lived intangible assets.

Our key assumptions using the
direct valuation method are market revenue growth rates, market share, profit margin, duration and profile of the build-up period, estimated start-up capital costs and losses incurred during the build-up period, the risk-adjusted discount rate and
terminal values. This data is populated using industry normalized information representing an average asset within a market.

On October 1, 2010, we performed our annual impairment test in accordance with ASC 350-30-35 and recognized an impairment charge of
$4.8 million in one of our markets.

In determining the fair value of our billboard permits, the following key assumptions
were used:



| | (i) | Industry revenue growth forecast at 7% was used for the initial four-year period;
| | --- | ---------------------------------------------------------------------------------



| | (ii) | 3% revenue growth was assumed beyond the initial four-year period;
| | ---- | ------------------------------------------------------------------



| | (iii) | Revenue was grown over a build-up period, reaching maturity by year 2;
| | ----- | ----------------------------------------------------------------------



| | (iv) | Operating margins gradually climb to the industry average margin of up to 51%, depending on market size, by year 3; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------



| | (v) | Assumed discount rate of 10%.
| | --- | -----------------------------



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While we believe we have made reasonable estimates and utilized appropriate assumptions to
calculate the fair value of our indefinite-lived assets, it is possible a material change could occur. If future results are not consistent with our assumptions and estimates, we may be exposed to impairment charges in the future. The following
table shows the decline in the fair value of our indefinite-lived intangibles that would result from a 100 basis point decline in our discrete and terminal period revenue growth rate and profit margin assumptions and a 100 basis point increase in
our discount rate assumption:



|                  |  |                     |           |  |               |   |           |                |  |   |           | 
|----------------- |  | ------------------- | --------- |  | ------------- | - | --------- | -------------- |  | - | --------- | 
|(In thousands)    |  |                     |           |  |               |   |           |                |  |   |           | 
|Description       |  | Revenue growth rate |           |  | Profit margin |   |           | Discount rates | 
|Billboard permits |  | $                   | (548,200) |  |               | $ | (117,600) |                |  | $ | (554,900) | 

The estimated fair
value of our permits at October 1, 2010 was $1.9 billion while the carrying value was $1.1 billion.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We
test goodwill at interim dates if events or changes in circumstances indicate that goodwill might be impaired. The fair value of our reporting units is used to apply value to the net assets of each reporting unit. To the extent that the carrying
amount of net assets would exceed the fair value, an impairment charge may be required to be recorded.

The discounted cash
flow approach we use for valuing goodwill involves estimating future cash flows expected to be generated from the related assets, discounted to their present value using a risk-adjusted discount rate. Terminal values are also estimated and
discounted to their present value.

On October 1, 2010, we performed our annual impairment test in accordance with ASC
350-30-35 and recognized an impairment charge of $2.1 million in one country within our International segment. In determining the fair value of our reporting units, we used the following assumptions:



| |  |  | Expected cash flows underlying our business plans for the periods 2011 through 2015. Our cash flow assumptions are based on detailed, multi-year
forecasts performed by each of our operating segments, and reflect the improved advertising outlook across our businesses.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Cash flows beyond 2015 are projected to grow at a perpetual growth rate, which we estimated at 3% for both our Americas and International segments.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In order to risk adjust the cash flow projections in determining fair value, we utilized a discount rate of approximately 11% for each of our reporting
units.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------

Based on our annual assessment using the assumptions described above, a hypothetical 25% reduction
in the estimated fair value in each of our reporting units would not result in a material impairment condition.

While we
believe we have made reasonable estimates and utilized appropriate assumptions to calculate the estimated fair value of our reporting units, it is possible a material change could occur. If future results are not consistent with our assumptions and
estimates, we may be exposed to impairment charges in the future. The following table shows the decline in the fair value of each of our reportable segments that would result from a 100 basis point decline in our discrete and terminal period revenue
growth rate and profit margin assumptions and a 100 basis point increase in our discount rate assumption:



|                   |  |                     |           |  |               |   |           |                |  |   |           | 
|------------------ |  | ------------------- | --------- |  | ------------- | - | --------- | -------------- |  | - | --------- | 
|(In thousands)     |  |                     |           |  |               |   |           |                |  |   |           | 
|Reportable segment |  | Revenue growth rate |           |  | Profit margin |   |           | Discount rates | 
|Americas           |  | $                   | (520,000) |  |               | $ | (130,000) |                |  | $ | (480,000) | 
|International      |  | $                   | (290,000) |  |               | $ | (170,000) |                |  | $ | (250,000) | 



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Tax Accruals

The IRS and other taxing authorities routinely examine our tax returns filed as part of the consolidated tax returns filed by Clear Channel Communications for the pre-merger periods and CC Media Holdings
for the post-merger periods. From time to time, the IRS challenges certain of our tax positions. We believe our tax positions comply with applicable tax law and we would vigorously defend these positions if challenged. The final disposition of any
positions challenged by the IRS could require us to make additional tax payments. We believe that we have adequately accrued for any foreseeable payments resulting from tax examinations and consequently do not anticipate any material impact upon
their ultimate resolution.

Our estimates of income taxes and the significant items giving rise to the deferred assets and
liabilities are shown in the notes to our consolidated financial statements and reflect our assessment of actual future taxes to be paid on items reflected in the financial statements, giving consideration to both timing and probability of these
estimates. Actual income taxes could vary from these estimates due to future changes in income tax law or results from the final review of our tax returns by Federal, state or foreign tax authorities.

We have considered these potential changes in accordance with ASC 740-10, which requires us to record reserves for estimates of probable
settlements of Federal and state tax audits.

Litigation Accruals

We are currently involved in certain legal proceedings. Based on current assumptions, we have accrued an estimate of the probable costs
for the resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. Future results of operations could be materially affected by changes in these assumptions or the effectiveness of our
strategies related to these proceedings.

Managements estimates used have been developed in consultation with counsel
and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies.

Asset Retirement
Obligations

ASC 410-20 requires us to estimate our obligation upon the termination or nonrenewal of a lease, to
dismantle and remove our billboard structures from the leased land and to reclaim the site to its original condition.

Due to
the high rate of lease renewals over a long period of time, our calculation assumes all related assets will be removed at some period over the next 50 years. An estimate of third-party cost information is used with respect to the dismantling of
the structures and the reclamation of the site. The interest rate used to calculate the present value of such costs over the retirement period is based on an estimated risk-adjusted credit rate for the same period. If our assumption of the
risk-adjusted credit rate used to discount current year additions to the asset retirement obligation decreased approximately 1%, our liability as of December 31, 2010 would not be materially impacted. Similarly, if our assumption of the
risk-adjusted credit rate increased approximately 1%, our liability would not be materially impacted.

Share-based Compensation

Under the fair value recognition provisions of ASC 718-10, share-based compensation cost is measured at the grant date
based on the fair value of the award. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. If actual results differ significantly
from these estimates, our results of operations could be materially impacted.



|ITEM 7A. | Quantitative and Qualitative Disclosures about Market Risk
|-------- | ----------------------------------------------------------

Required information is located within Item 7 of Part II of this Annual Report on Form 10-K.



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ITEM 8. Financial Statements and Supplementary Data

MANAGEMENTS REPORT ON FINANCIAL STATEMENTS

The consolidated financial statements and notes related thereto were prepared by and are the responsibility of management. The financial statements and
related notes were prepared in conformity with U.S. generally accepted accounting principles and include amounts based upon managements best estimates and judgments.

It is managements objective to ensure the integrity and objectivity of its financial data through systems of internal controls designed to provide reasonable assurance that all transactions are
properly recorded in our books and records, that assets are safeguarded from unauthorized use and that financial records are reliable to serve as a basis for preparation of financial statements.

The financial statements have been audited by our independent registered public accounting firm, Ernst & Young LLP, to the extent required by
auditing standards of the Public Company Accounting Oversight Board (United States) and, accordingly, they have expressed their professional opinion on the financial statements in their report included herein.

The Board of Directors meets with the independent registered public accounting firm and management periodically to satisfy itself that they are properly
discharging their responsibilities. The independent registered public accounting firm has unrestricted access to the Board, without management present, to discuss the results of their audit and the quality of financial reporting and internal
accounting controls.



|                                                    
|----------------------------------------------------
|/s/Mark P. Mays                                     
|Chief Executive Officer                             
|                                                    
|/s/Thomas W. Casey                                  
|Executive Vice President and Chief Financial Officer
|                                                    
|/s/Scott D. Hamilton                                
|Senior Vice President and Chief Accounting Officer  



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Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Clear
Channel Outdoor Holdings, Inc.

We have audited the accompanying consolidated balance sheets of Clear Channel Outdoor Holdings, Inc. (the
Company) as of December 31, 2010 and 2009, and the related consolidated statements of operations, shareholders equity, and cash flows for the years ended December 31, 2010 and 2009, the period from July 31, 2008 through December 31, 2008, and
the period from January 1, 2008 through July 30, 2008. Our audits also included the financial statement schedule listed in the index as Item 15(a)2. These financial statements and schedule are the responsibility of the Companys
management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our
audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2010 and 2009, the consolidated
results of its operations and cash flows for the years ended December 31, 2010 and 2009, the period from July 31, 2008 through December 31, 2008, and the period from January 1, 2008 through July 30, 2008, in conformity with U.S. generally accepted
accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Companys
internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control  Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated
February 14, 2011 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

San Antonio, Texas

February 14, 2011



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CONSOLIDATED BALANCE SHEETS



|                                                                                                                                            |  |                    |            |   |      |   |            |  
|------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ---------- | - | ---- | - | ---------- | -
|(In thousands)                                                                                                                              |  | As of December 31, |           
|                                                                                                                                            |  | 2010               |            |   | 2009 |  
|CURRENT ASSETS                                                                                                                              |  |                    |            |   |      |   |            |  
|Cash and cash equivalents                                                                                                                   |  | $                  | 624,018    |   |      | $ | 609,436    |  
|Accounts receivable, net of allowance of $49,032 in 2010 and $51,070 in 2009                                                                |  |                    | 754,600    |   |      |   | 730,306    |  
|Prepaid expenses                                                                                                                            |  |                    | 100,391    |   |      |   | 117,804    |  
|Other current assets                                                                                                                        |  |                    | 90,969     |   |      |   | 182,999    |  
|                                                                                                                                            |  |                    |            |   |      |   |            |  
|Total Current Assets                                                                                                                        |  |                    | 1,569,978  |   |      |   | 1,640,545  |  
|                                                                                                                                            |  |                   
|PROPERTY, PLANT AND EQUIPMENT                                                                                                               |  |                    |            |   |      |   |            |  
|Structures, net                                                                                                                             |  |                    | 2,007,399  |   |      |   | 2,143,972  |  
|Other property, plant and equipment, net                                                                                                    |  |                    | 290,325    |   |      |   | 296,666    |  
|                                                                                                                                            |  |                   
|INTANGIBLE ASSETS                                                                                                                           |  |                    |            |   |      |   |            |  
|Definite-lived intangibles, net                                                                                                             |  |                    | 705,218    |   |      |   | 799,144    |  
|Indefinite-lived intangibles  permits                                                                                                      |  |                    | 1,114,413  |   |      |   | 1,132,218  |  
|Goodwill                                                                                                                                    |  |                    | 862,242    |   |      |   | 861,592    |  
|                                                                                                                                            |  |                   
|OTHER ASSETS                                                                                                                                |  |                    |            |   |      |   |            |  
|Due from Clear Channel Communications                                                                                                       |  |                    | 383,778    |   |      |   | 123,308    |  
|Other assets                                                                                                                                |  |                    | 162,697    |   |      |   | 194,977    |  
|                                                                                                                                            |  |                    |            |   |      |   |            |  
|Total Assets                                                                                                                                |  | $                  | 7,096,050  |   |      | $ | 7,192,422  |  
|                                                                                                                                            |  |                    |            |   |      |   |            |  
|                                                                                                                                            |  |                   
|CURRENT LIABILITIES                                                                                                                         |  |                    |            |   |      |   |            |  
|Accounts payable                                                                                                                            |  | $                  | 100,540    |   |      | $ | 109,322    |  
|Accrued expenses                                                                                                                            |  |                    | 542,530    |   |      |   | 505,120    |  
|Deferred income                                                                                                                             |  |                    | 100,675    |   |      |   | 109,578    |  
|Current portion of long-term debt                                                                                                           |  |                    | 41,676     |   |      |   | 47,073     |  
|                                                                                                                                            |  |                    |            |   |      |   |            |  
|Total Current Liabilities                                                                                                                   |  |                    | 785,421    |   |      |   | 771,093    |  
|                                                                                                                                            |  |                   
|Long-term debt                                                                                                                              |  |                    | 2,522,133  |   |      |   | 2,561,805  |  
|Other long-term liabilities                                                                                                                 |  |                    | 251,873    |   |      |   | 256,236    |  
|Deferred tax liability                                                                                                                      |  |                    | 828,568    |   |      |   | 841,911    |  
|Commitments and contingent liabilities (Note 7)                                                                                             |  |                    |            |   |      |   |            |  
|                                                                                                                                            |  |                   
|SHAREHOLDERS EQUITY                                                                                                                        |  |                    |            |   |      |   |            |  
|Noncontrolling interest                                                                                                                     |  |                    | 209,794    |   |      |   | 193,730    |  
|Preferred stock, $.01 par value, 150,000,000 shares authorized, no shares issued and outstanding                                            |  |                    |           |   |      |   |           |  
|Class A common stock, $.01 par value, 750,000,000 shares authorized, 40,886,923 and 40,841,551 shares issued in 2010 and
2009, respectively |  |                    | 408        |   |      |   | 407        |  
|Class B common stock, $.01 par value, 600,000,000 shares authorized, 315,000,000 shares issued and outstanding                              |  |                    | 3,150      |   |      |   | 3,150      |  
|Additional paid-in capital                                                                                                                  |  |                    | 6,677,146  |   |      |   | 6,669,247  |  
|Retained deficit                                                                                                                            |  |                    | (3,974,349 | ) |      |   | (3,886,826 | )
|Accumulated other comprehensive loss                                                                                                        |  |                    | (207,439   | ) |      |   | (218,177   | )
|Cost of shares (84,896 in 2010 and 43,459 in 2009) held in treasury                                                                         |  |                    | (655       | ) |      |   | (154       | )
|                                                                                                                                            |  |                    |            |   |      |   |            |  
|Total Shareholders Equity                                                                                                                  |  |                    | 2,708,055  |   |      |   | 2,761,377  |  
|                                                                                                                                            |  |                    |            |   |      |   |            |  
|                                                                                                                                            |  |                   
|Total Liabilities and Shareholders Equity                                                                                                  |  | $                  | 7,096,050  |   |      | $ | 7,192,422  |  
|                                                                                                                                            |  |                    |            |   |      |   |            |  

See Notes to Consolidated Financial Statements



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CONSOLIDATED STATEMENTS OF OPERATIONS



|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|---------------------------------------------------------------------------------------------------- |  | ----------------------- | --------- | - | --------------------------------------- | - | ---------- | ----------- |  | - | ---------- | -------------------------------------- |  |  | ---------- |  |  | - | --------- | -
|(In thousands, except per share data)                                                                |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            | 
|                                                                                                     |  | Year Ended December 31, |           |   | Period from July 31 throughDecember 31, |   |            |             |  |   |            | Period from January 1 through July 30, | 
|                                                                                                     |  | 2010                    |           |   | 2009                                    |   |            | 2008        |  |   |            |                                        |  |  | 2008       | 
|                                                                                                     |  | Post-Merger             |           |   | Post-Merger                             |   |            | Post-Merger |  |   |            |                                        |  |  | Pre-Merger | 
|                                                                                                     |  |                         |           |   |                                         |  
|Revenue                                                                                              |  | $                       | 2,797,994 |   |                                         | $ | 2,698,024  |             |  | $ | 1,327,224  |                                        |  |  |            |  |  | $ | 1,962,063 |  
|Operating expenses:                                                                                  |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Direct operating expenses (excludes depreciation and amortization)                                   |  |                         | 1,559,972 |   |                                         |   | 1,625,083  |             |  |   | 762,704    |                                        |  |  |            |  |  |   | 1,119,432 |  
|Selling, general and administrative expenses (excludes depreciation and amortization)                |  |                         | 494,656   |   |                                         |   | 484,404    |             |  |   | 261,524    |                                        |  |  |            |  |  |   | 344,846   |  
|Corporate expenses (excludes depreciation and amortization)                                          |  |                         | 107,596   |   |                                         |   | 65,247     |             |  |   | 31,681     |                                        |  |  |            |  |  |   | 39,364    |  
|Depreciation and amortization                                                                        |  |                         | 413,588   |   |                                         |   | 439,647    |             |  |   | 224,713    |                                        |  |  |            |  |  |   | 247,637   |  
|Impairment charges                                                                                   |  |                         | 11,493    |   |                                         |   | 890,737    |             |  |   | 3,217,649  |                                        |  |  |            |  |  |   |          |  
|Other operating income (expense)  net                                                               |  |                         | (23,753   | ) |                                         |   | (8,231     | )           |  |   | 4,870      |                                        |  |  |            |  |  |   | 10,978    |  
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Operating income (loss)                                                                              |  |                         | 186,936   |   |                                         |   | (815,325   | )           |  |   | (3,166,177 | )                                      |  |  |            |  |  |   | 221,762   |  
|Interest expense                                                                                     |  |                         | 239,453   |   |                                         |   | 154,919    |             |  |   | 73,725     |                                        |  |  |            |  |  |   | 91,377    |  
|Interest income on Due from Clear Channel Communications                                             |  |                         | 19,460    |   |                                         |   | 724        |             |  |   | 862        |                                        |  |  |            |  |  |   | 2,590     |  
|Loss on marketable securities                                                                        |  |                         | 6,490     |   |                                         |   | 11,315     |             |  |   | 59,842     |                                        |  |  |            |  |  |   |          |  
|Equity in earnings (loss) of nonconsolidated affiliates                                              |  |                         | (9,936    | ) |                                         |   | (31,442    | )           |  |   | (2,109     | )                                      |  |  |            |  |  |   | 70,842    |  
|Other income (expense) net                                                                          |  |                         | (5,335    | ) |                                         |   | (9,368     | )           |  |   | 12,114     |                                        |  |  |            |  |  |   | 13,365    |  
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Income (loss) before income taxes                                                                    |  |                         | (54,818   | ) |                                         |   | (1,021,645 | )           |  |   | (3,288,877 | )                                      |  |  |            |  |  |   | 217,182   |  
|Income tax benefit (expense)                                                                         |  |                         | (21,599   | ) |                                         |   | 149,110    |             |  |   | 271,895    |                                        |  |  |            |  |  |   | (51,576   | )
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Consolidated net income (loss)                                                                       |  |                         | (76,417   | ) |                                         |   | (872,535   | )           |  |   | (3,016,982 | )                                      |  |  |            |  |  |   | 165,606   |  
|Less amount attributable to noncontrolling interest                                                  |  |                         | 11,106    |   |                                         |   | (4,346     | )           |  |   | 1,655      |                                        |  |  |            |  |  |   | (1,948    | )
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Net income (loss) attributable to the Company                                                        |  |                         | (87,523   | ) |                                         |   | (868,189   | )           |  |   | (3,018,637 | )                                      |  |  |            |  |  |   | 167,554   |  
|Other comprehensive income (loss), net of tax:                                                       |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Foreign currency translation adjustments                                                             |  |                         | 16,237    |   |                                         |   | 118,632    |             |  |   | (341,113   | )                                      |  |  |            |  |  |   | 84,603    |  
|Foreign currency reclassification adjustment for sale of foreign subsidiary                          |  |                         | 3,437     |   |                                         |   | (523       | )           |  |   |           |                                        |  |  |            |  |  |   | 2,588     |  
|Unrealized loss on marketable securities                                                             |  |                         | (7,809    | ) |                                         |   | (9,971     | )           |  |   | (59,825    | )                                      |  |  |            |  |  |   | (27,496   | )
|Reclassification adjustment for realized loss on marketable securities included in net income (loss) |  |                         | 6,490     |   |                                         |   | 11,315     |             |  |   | 59,842     |                                        |  |  |            |  |  |   |          |  
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Comprehensive income (loss)                                                                          |  | $                       | (69,168   | ) |                                         | $ | (748,736   | )           |  | $ | (3,359,733 | )                                      |  |  |            |  |  | $ | 227,249   |  
|Less amount attributable to noncontrolling interest                                                  |  |                         | 7,617     |   |                                         |   | 8,050      |             |  |   | (11,516    | )                                      |  |  |            |  |  |   | 14,019    |  
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Comprehensive income (loss) attributable to the Company                                              |  | $                       | (76,785   | ) |                                         | $ | (756,786   | )           |  | $ | (3,348,217 | )                                      |  |  |            |  |  | $ | 213,230   |  
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|                                                                                                     |  |                         |           |   |                                         |  
|Net income (loss) per common share:                                                                  |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Basic                                                                                                |  | $                       | (0.26     | ) |                                         | $ | (2.46      | )           |  | $ | (8.50      | )                                      |  |  |            |  |  | $ | 0.47      |  
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Weighted average common shares outstanding Basic                                                    |  |                         | 355,568   |   |                                         |   | 355,377    |             |  |   | 355,308    |                                        |  |  |            |  |  |   | 355,178   |  
|Diluted                                                                                              |  | $                       | (0.26     | ) |                                         | $ | (2.46      | )           |  | $ | (8.50      | )                                      |  |  |            |  |  | $ | 0.47      |  
|                                                                                                     |  |                         |           |   |                                         |   |            |             |  |   |            |                                        |  |  |            |  |  |   |           |  
|Weighted average common shares outstanding Diluted                                                  |  |                         | 355,568   |   |                                         |   | 355,377    |             |  |   | 355,308    |                                        |  |  |            |  |  |   | 355,741   |  

See Notes to
Consolidated Financial Statements



61



---

##### Table of Contents

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY



|                                             |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|-------------------------------------------- |  | --------------------------- | ---------- | - | --------------------------- |  | ----------- | ---------------------- |  | - | ----------- | - |  | -------------- | ----- |  | ----------------- | - | --------- | -------------------------------- |  | - | ------------- | - |  | ----- | -------- | - |  | - | ---- | - |  | - | ---------- | -
|(In thousands, except share data)            |  |                             |            |   |                             |  |             |                        |  |   |             |   |  | Additional     |       |  | Retained          |   |           | Accumulated                      |  |   |               |   |  |       |         
|Pre-Merger                                   |  | Class A CommonShares Issued |            |   | Class B CommonShares Issued |  |             | NoncontrollingInterest |  |   | CommonStock |   |  | Paid-inCapital |       |  | Earnings(Deficit) |   |           | Other ComprehensiveIncome (Loss) |  |   | TreasuryStock |   |  | Total |         
|Balances at December 31, 2007                |  |                             | 40,494,873 |   |                             |  | 315,000,000 |                        |  | $ | 215,864     |   |  | $              | 3,555 |  |                   | $ | 1,304,359 |                                  |  | $ | 427,391       |   |  | $     | 247,478  |   |  | $ | (53  | ) |  | $ | 2,198,594  |  
|Net income (loss)                            |  |                             |            |   |                             |  |             |                        |  |   | (1,948      | ) |  |                |       |  |                   |   |           |                                  |  |   | 167,554       |   |  |       |          |   |  |   |      |   |  |   | 165,606    |  
|Exercise of stock options and other          |  |                             | 218,164    |   |                             |  |             |                        |  |   |             |   |  |                | 2     |  |                   |   | 4,259     |                                  |  |   |               |   |  |       |          |   |  |   | (265 | ) |  |   | 3,996      |  
|Acquisitions (minority buy-back)             |  |                             |            |   |                             |  |             |                        |  |   | (5,292      | ) |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | (5,292     | )
|Payments to noncontrolling interests         |  |                             |            |   |                             |  |             |                        |  |   | (616        | ) |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | (616       | )
|Share-based payments                         |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   | 6,506     |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | 6,506      |  
|Other                                        |  |                             |            |   |                             |  |             |                        |  |   | (260        | ) |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | (260       | )
|Comprehensive income:                        |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Currency translation adjustment and other    |  |                             |            |   |                             |  |             |                        |  |   | 14,019      |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | 70,584   |   |  |   |      |   |  |   | 84,603     |  
|Unrealized loss on marketable securities     |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | (27,496  | ) |  |   |      |   |  |   | (27,496    | )
|Foreign currency reclassification adjustment |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | 2,588    |   |  |   |      |   |  |   | 2,588      |  
|                                             |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Balances at July 30, 2008                    |  |                             | 40,713,037 |   |                             |  | 315,000,000 |                        |  |   | 221,767     |   |  |                | 3,557 |  |                   |   | 1,315,124 |                                  |  |   | 594,945       |   |  |       | 293,154  |   |  |   | (318 | ) |  |   | 2,428,229  |  
|Post-Merger                                  |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Push-down accounting effects of merger       |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   | 5,357,409 |                                  |  |   | (594,945      | ) |  |       | (293,154 | ) |  |   | 318  |   |  |   | 4,469,628  |  
|Net income (loss)                            |  |                             |            |   |                             |  |             |                        |  |   | 1,655       |   |  |                |       |  |                   |   |           |                                  |  |   | (3,018,637    | ) |  |       |          |   |  |   |      |   |  |   | (3,016,982 | )
|Exercise of stock options and other          |  |                             | (7,399     | ) |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   | (44  | ) |  |   | (44        | )
|Acquisitions (minority buy-back)             |  |                             |            |   |                             |  |             |                        |  |   | (1,773      | ) |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | (1,773     | )
|Payments from noncontrolling interests       |  |                             |            |   |                             |  |             |                        |  |   | 1,262       |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | 1,262      |  
|Share-based payments                         |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   | 4,181     |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | 4,181      |  
|Other                                        |  |                             |            |   |                             |  |             |                        |  |   | 418         |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | 418        |  
|Comprehensive income:                        |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Currency translation adjustment and other    |  |                             |            |   |                             |  |             |                        |  |   | (11,516     | ) |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | (329,597 | ) |  |   |      |   |  |   | (341,113   | )
|Unrealized loss on marketable securities     |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | (59,825  | ) |  |   |      |   |  |   | (59,825    | )
|Reclassification adjustments                 |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | 59,842   |   |  |   |      |   |  |   | 59,842     |  
|                                             |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Balances at December 31, 2008                |  |                             | 40,705,638 |   |                             |  | 315,000,000 |                        |  |   | 211,813     |   |  |                | 3,557 |  |                   |   | 6,676,714 |                                  |  |   | (3,018,637    | ) |  |       | (329,580 | ) |  |   | (44  | ) |  |   | 3,543,823  |  
|Net loss                                     |  |                             |            |   |                             |  |             |                        |  |   | (4,346      | ) |  |                |       |  |                   |   |           |                                  |  |   | (868,189      | ) |  |       |          |   |  |   |      |   |  |   | (872,535   | )
|Exercise of stock options and other          |  |                             | 135,913    |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   | (110 | ) |  |   | (110       | )
|Acquisitions                                 |  |                             |            |   |                             |  |             |                        |  |   | (3,380      | ) |  |                |       |  |                   |   | (9,720    | )                                |  |   |               |   |  |       |          |   |  |   |      |   |  |   | (13,100    | )
|Share-based payments                         |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   | 12,104    |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | 12,104     |  
|Other                                        |  |                             |            |   |                             |  |             |                        |  |   | (18,407     | ) |  |                |       |  |                   |   | (9,851    | )                                |  |   |               |   |  |       |          |   |  |   |      |   |  |   | (28,258    | )
|Comprehensive income:                        |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Currency translation adjustment and other    |  |                             |            |   |                             |  |             |                        |  |   | 8,050       |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | 110,582  |   |  |   |      |   |  |   | 118,632    |  
|Unrealized loss on marketable securities     |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | (9,971   | ) |  |   |      |   |  |   | (9,971     | )
|Reclassification adjustments                 |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | 10,792   |   |  |   |      |   |  |   | 10,792     |  
|                                             |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Balances at December 31, 2009                |  |                             | 40,841,551 |   |                             |  | 315,000,000 |                        |  |   | 193,730     |   |  |                | 3,557 |  |                   |   | 6,669,247 |                                  |  |   | (3,886,826    | ) |  |       | (218,177 | ) |  |   | (154 | ) |  |   | 2,761,377  |  
|Net income (loss)                            |  |                             |            |   |                             |  |             |                        |  |   | 11,106      |   |  |                |       |  |                   |   |           |                                  |  |   | (87,523       | ) |  |       |          |   |  |   |      |   |  |   | (76,417    | )
|Exercise of stock options and other          |  |                             | 45,372     |   |                             |  |             |                        |  |   |             |   |  |                | 1     |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   | (501 | ) |  |   | (500       | )
|Share-based payments                         |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   | 12,337    |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   | 12,337     |  
|Other                                        |  |                             |            |   |                             |  |             |                        |  |   | (2,659      | ) |  |                |       |  |                   |   | (4,438    | )                                |  |   |               |   |  |       |          |   |  |   |      |   |  |   | (7,097     | )
|Comprehensive income:                        |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Currency translation adjustment              |  |                             |            |   |                             |  |             |                        |  |   | 6,825       |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | 9,412    |   |  |   |      |   |  |   | 16,237     |  
|Unrealized loss on marketable securities     |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | (7,809   | ) |  |   |      |   |  |   | (7,809     | )
|Reclassification adjustments                 |  |                             |            |   |                             |  |             |                        |  |   | 792         |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       | 9,135    |   |  |   |      |   |  |   | 9,927      |  
|                                             |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  
|Balances at December 31, 2010                |  |                             | 40,886,923 |   |                             |  | 315,000,000 |                        |  | $ | 209,794     |   |  | $              | 3,558 |  |                   | $ | 6,677,146 |                                  |  | $ | (3,974,349    | ) |  | $     | (207,439 | ) |  | $ | (655 | ) |  | $ | 2,708,055  |  
|                                             |  |                             |            |   |                             |  |             |                        |  |   |             |   |  |                |       |  |                   |   |           |                                  |  |   |               |   |  |       |          |   |  |   |      |   |  |   |            |  

See Notes to Consolidated Financial Statements



62



---

##### Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS



|                                                                                                   |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|-------------------------------------------------------------------------------------------------- |  | ----------------------- | -------- | - | --------------------------------------- | - | ---------- | ------------------------------------- |  | - | ---------- | - |  | - | -------- | -
|(In thousands)                                                                                     |  |                         |          |   |                                         |   |            |                                       |  |   |            |  
|                                                                                                   |  | Year Ended December 31, |          |   | Period from July
31 throughDecember 31, |   |            | Period fromJanuary 1 through
July 30, | 
|                                                                                                   |  | 2010                    |          |   | 2009                                    |   |            | 2008                                  |  |   | 2008       |  
|                                                                                                   |  | Post-Merger             |          |   | Post-Merger                             |   |            | Post-Merger                           |  |   | Pre-Merger |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                              |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|Consolidated net income (loss)                                                                     |  | $                       | (76,417  | ) |                                         | $ | (872,535   | )                                     |  | $ | (3,016,982 | ) |  | $ | 165,606  |  
|                                                                                                   |  |                         |          |  
|Reconciling Items:                                                                                 |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|                                                                                                   |  |                         |          |  
|Impairment charges                                                                                 |  |                         | 11,493   |   |                                         |   | 890,737    |                                       |  |   | 3,217,649  |   |  |   |         |  
|Depreciation and amortization                                                                      |  |                         | 413,588  |   |                                         |   | 439,647    |                                       |  |   | 224,713    |   |  |   | 247,637  |  
|Deferred tax expense (benefit)                                                                     |  |                         | (14,362  | ) |                                         |   | (132,341   | )                                     |  |   | (268,850   | ) |  |   | 21,405   |  
|Provision for doubtful accounts                                                                    |  |                         | 8,868    |   |                                         |   | 17,580     |                                       |  |   | 24,268     |   |  |   | 8,588    |  
|Share-based compensation                                                                           |  |                         | 12,337   |   |                                         |   | 12,104     |                                       |  |   | 4,181      |   |  |   | 6,506    |  
|(Gain) loss on sale of operating and fixed assets                                                  |  |                         | 23,753   |   |                                         |   | 8,231      |                                       |  |   | (4,870     | ) |  |   | (10,978  | )
|Loss on marketable securities                                                                      |  |                         | 6,490    |   |                                         |   | 11,315     |                                       |  |   | 59,842     |   |  |   |         |  
|Other, net                                                                                         |  |                         | 25,508   |   |                                         |   | 37,099     |                                       |  |   | 2,109      |   |  |   | (70,842  | )
|                                                                                                   |  |                         |          |  
|Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:      |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|Decrease (increase) in accounts receivable                                                         |  |                         | (47,113  | ) |                                         |   | 68,002     |                                       |  |   | 87,251     |   |  |   | 7,108    |  
|Decrease in Federal income taxes receivable                                                        |  |                         | 50,958   |   |                                         |   |           |                                       |  |   |           |   |  |   |         |  
|Increase (decrease) in accounts payable, accrued expenses and other liabilities                    |  |                         | 50,723   |   |                                         |   | 11,757     |                                       |  |   | (78,613    | ) |  |   | (26,106  | )
|Increase (decrease) in deferred income                                                             |  |                         | (7,045   | ) |                                         |   | (1,987     | )                                     |  |   | (48,435    | ) |  |   | 33,218   |  
|Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions |  |                         | 66,436   |   |                                         |   | (48,345    | )                                     |  |   | 70,039     |   |  |   | (50,820  | )
|                                                                                                   |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|                                                                                                   |  |                         |          |  
|Net cash provided by operating activities                                                          |  |                         | 525,217  |   |                                         |   | 441,264    |                                       |  |   | 272,302    |   |  |   | 331,322  |  
|                                                                                                   |  |                         |          |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                              |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|Purchases of property, plant and equipment                                                         |  |                         | (195,273 | ) |                                         |   | (175,953   | )                                     |  |   | (159,213   | ) |  |   | (199,122 | )
|Proceeds from disposal of assets                                                                   |  |                         | 7,753    |   |                                         |   | 18,144     |                                       |  |   | 2,917      |   |  |   | 38,630   |  
|Acquisition of operating assets, net of cash acquired                                              |  |                         | (1,841   | ) |                                         |   | (4,933     | )                                     |  |   | (11,677    | ) |  |   | (84,821  | )
|Change in other  net                                                                              |  |                         | (9,344   | ) |                                         |   | (122       | )                                     |  |   | (24,739    | ) |  |   | 12,181   |  
|                                                                                                   |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|                                                                                                   |  |                         |          |  
|Net cash used for investing activities                                                             |  |                         | (198,705 | ) |                                         |   | (162,864   | )                                     |  |   | (192,712   | ) |  |   | (233,132 | )
|                                                                                                   |  |                         |          |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                              |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|Draws on credit facilities                                                                         |  |                         | 4,670    |   |                                         |   | 7,125      |                                       |  |   | 30,000     |   |  |   | 72,150   |  
|Payments on credit facilities                                                                      |  |                         | (47,095  | ) |                                         |   | (3,364     | )                                     |  |   | (660       | ) |  |   | (157,774 | )
|Proceeds from long-term debt                                                                       |  |                         | 6,844    |   |                                         |   | 2,500,000  |                                       |  |   | 25,020     |   |  |   | 5,476    |  
|Payments on long-term debt                                                                         |  |                         | (13,212  | ) |                                         |   | (2,505,913 | )                                     |  |   | (37,145    | ) |  |   | (4,662   | )
|Net transfers (to) from Clear Channel Communications                                               |  |                         | (260,470 | ) |                                         |   | 319,401    |                                       |  |   | (85,611    | ) |  |   | (83,585  | )
|Deferred financing charges                                                                         |  |                         |         |   |                                         |   | (60,330    | )                                     |  |   |           |   |  |   |         |  
|Purchases of noncontrolling interests                                                              |  |                         |         |   |                                         |   | (25,153    | )                                     |  |   |           |   |  |   |         |  
|Change in other, net                                                                               |  |                         | (5,200   | ) |                                         |   | (110       | )                                     |  |   | (46        | ) |  |   | 3,997    |  
|                                                                                                   |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|                                                                                                   |  |                         |          |  
|Net cash provided by (used for) financing activities                                               |  |                         | (314,463 | ) |                                         |   | 231,656    |                                       |  |   | (68,442    | ) |  |   | (164,398 | )
|                                                                                                   |  |                         |          |  
|Effect of exchange rate changes on cash                                                            |  |                         | 2,533    |   |                                         |   | 4,568      |                                       |  |   | 10,539     |   |  |   | 4,436    |  
|                                                                                                   |  |                         |          |  
|Net increase (decrease) in cash and cash equivalents                                               |  |                         | 14,582   |   |                                         |   | 514,624    |                                       |  |   | 21,687     |   |  |   | (61,772  | )
|                                                                                                   |  |                         |          |  
|Cash and cash equivalents at beginning of year                                                     |  |                         | 609,436  |   |                                         |   | 94,812     |                                       |  |   | 73,125     |   |  |   | 134,897  |  
|                                                                                                   |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|Cash and cash equivalents at end of year                                                           |  | $                       | 624,018  |   |                                         | $ | 609,436    |                                       |  | $ | 94,812     |   |  | $ | 73,125   |  
|                                                                                                   |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|                                                                                                   |  |                         |          |  
|SUPPLEMENTAL DISCLOSURES:                                                                          |  |                         |          |   |                                         |   |            |                                       |  |   |            |   |  |   |          |  
|Cash paid during the year for interest                                                             |  | $                       | 235,101  |   |                                         | $ | 154,027    |                                       |  | $ | 75,616     |   |  | $ | 92,326   |  
|Cash paid during the year for income taxes                                                         |  | $                       |         |   |                                         | $ | 26,543     |                                       |  | $ | 19,651     |   |  | $ | 31,046   |  

See Notes to
Consolidated Financial Statements



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Clear Channel Outdoor Holdings, Inc. (the Company) is an outdoor advertising company which owns or operates advertising
display faces domestically and internationally. On November 11, 2005, the Company became a publicly traded company through an initial public offering (IPO), in which 10%, or 35.0 million shares, of the Companys
Class A common stock was sold. Prior to the IPO, the Company was an indirect wholly-owned subsidiary of Clear Channel Communications, Inc. (Clear Channel Communications), a diversified media company with operations in radio
broadcasting and outdoor advertising. Clear Channel Communications indirectly holds all of the 315.0 million shares of Class B common stock outstanding, representing approximately 89% of the shares outstanding and approximately 99% of the
voting power. The holders of Class A common stock and Class B common stock have identical rights, except holders of Class A common stock are entitled to one vote per share while holders of Class B common stock are entitled to 20 votes per
share. The Class B shares of common stock are convertible, at the option of the holder at any time or upon any transfer, into shares of Class A common stock on a one-for-one basis, subject to certain limited exceptions.

The Company operates in the outdoor advertising industry by selling advertising on billboards, street furniture displays, transit displays and other
advertising displays. The Company has two reportable business segments: Americas and International. The Americas segment primarily includes operations in the United States, Canada and Latin America; the International segment primarily includes
operations in Europe, Asia and Australia.

Clear Channel Communications Merger

On July 30, 2008, Clear Channel Communications completed its merger with a subsidiary of CC Media Holdings, Inc. (CC Media Holdings), a
company formed by a group of private equity funds sponsored by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. (together, the Sponsors). Clear Channel Communications is now owned indirectly by CC Media Holdings. The purchase
price was approximately $23.0 billion, including $94.0 million in capitalized transaction costs. The merger was accounted for as a purchase business combination in conformity with Statement of Financial Accounting Standards No. 141, Business
Combinations, and Emerging Issues Task Force Issue 88-16, Basis in Leveraged Buyout Transactions. ASC 805-50-S99-1 requires the application of push down accounting in situations where the ownership of an entity has changed. As a result,
the post-merger financial statements of the Company reflect the new basis of accounting.

The purchase price allocation was complete as of
July 30, 2009 in accordance with ASC 805-10-25, which requires that the allocation period not exceed one year from the date of acquisition.

Format of Presentation

The accompanying consolidated statements of operations,
statements of cash flows and shareholders equity are presented for the post-merger and pre-merger periods. The merger resulted in a new basis of accounting beginning on July 31, 2008 and the financial reporting periods are presented as
follows:



| |  |  | The years ended December 31, 2010 and 2009, and the period from July 31 through December 31, 2008 reflect the post-merger period of the
Company, including the purchase accounting adjustments related to the merger that were pushed down to the Company.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The period from January 1 through July 30, 2008 reflects the pre-merger period of the Company. The consolidated financial statements for the
pre-merger period were prepared using the historical basis of accounting for the Company. As a result of the merger and the associated purchase accounting, the consolidated financial statements of the post-merger periods are not comparable to
periods preceding the merger.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



Agreements with Clear Channel Communications

There are several agreements which govern the Companys relationship with Clear Channel Communications including the Master Agreement, Corporate
Services Agreement, Employee Matters Agreement and Tax Matters Agreement. Clear Channel Communications has the right to terminate these agreements in various circumstances. As of the date of the filing of this report, no notice of termination of any
of these agreements has been received from Clear Channel Communications.

Clear Channel Communications Revolving Credit Facility

In conjunction with the merger, Clear Channel Communications $1.75 billion revolving credit facility, including the $150.0
million sub-limit, was terminated. The facility was replaced with a $2.0 billion revolving credit facility with a maturity in July 2014, which includes a $150.0 million sub-limit that certain of the Companys International subsidiaries may
borrow against to the extent Clear Channel Communications has not already borrowed against this capacity and is in compliance with its covenants under the credit facility. The obligations of these International subsidiaries that at any time are
borrowers under the revolving credit facility are guaranteed by certain of the Companys material wholly-owned subsidiaries, and secured by substantially all assets of such borrowers and guarantors, subject to permitted liens and other
exceptions. As of December 31, 2010, the Company had no outstanding borrowings under the $150.0 million sub-limit facility as Clear Channel Communications had already borrowed against the entire capacity.

Principles of Consolidation

The
consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts have been eliminated in consolidation. Investments in companies in which the Company owns 20 percent to 50 percent of
the voting common stock or otherwise exercises significant influence over operating and financial policies of the company are accounted for using the equity method of accounting.

Certain prior period amounts have been reclassified to conform to the 2010 presentation.

Cash and Cash Equivalents

Cash
and cash equivalents include all highly liquid investments with an original maturity of three months or less.

Allowance for Doubtful
Accounts

The Company evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where
it is aware of a specific customers inability to meet its financial obligations, it records a specific reserve to reduce the amounts recorded to what it believes will be collected. For all other customers, it recognizes reserves for bad debt
based on historical experience of bad debts as a percent of revenue for each business unit, adjusted for relative improvements or deteriorations in the agings and changes in current economic conditions. The Company believes its concentration of
credit risk is limited due to the large number and the geographic diversification of its customers.

Land Leases and Other Structure
Licenses

Most of the Companys advertising structures are located on leased land. Americas land rents are typically paid in
advance for periods ranging from one to 12 months. International land rents are paid both in advance and in arrears, for periods ranging from one to 12 months. Most International street furniture display faces are operated through contracts with
municipalities for up to 20 years. The leased land and street furniture contracts often include a percent of revenue to be paid along with a base rent payment. Prepaid land leases are recorded as an asset and expensed ratably over the related rental
term and license and rent payments in arrears are recorded as an accrued liability.



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Purchase Accounting

The Company accounts for its business combinations under the acquisition method of accounting. The total cost of an acquisition is allocated to the underlying identifiable net assets, based on their
respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires managements
judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives and market multiples, among other items. Various acquisition agreements
may include contingent purchase consideration based on performance requirements of the investee. The Company accounts for these payments in conformity with the provisions of ASC 805-20-30, which establish the requirements related to recognition of
certain assets and liabilities arising from contingencies.

Asset Retirement Obligation

ASC 410-20 requires the Company to estimate its obligation upon the termination or non-renewal of a lease to dismantle and remove its advertising
structures from the leased land and to reclaim the site to its original condition. The Companys asset retirement obligation is reported in Other long-term liabilities. The Company records the present value of obligations associated
with the retirement of its advertising structures in the period in which the obligation is incurred. When the liability is recorded, the cost is capitalized as part of the related advertising structures carrying amount. Over time, accretion of the
liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset.

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method at rates that, in the opinion of management, are
adequate to allocate the cost of such assets over their estimated useful lives, which are as follows:

Buildings and
improvements  10 to 39 years

Structures  5 to 40 years

Furniture and other equipment  3 to 20 years

Leasehold improvements  shorter of economic life or lease term assuming renewal periods, if appropriate

For assets associated with a lease or contract, the assets are depreciated at the shorter of the economic life or the lease or contract term, assuming renewal periods, if appropriate. Expenditures for
maintenance and repairs are charged to operations as incurred, whereas expenditures for renewal and betterments are capitalized.

The Company
tests for possible impairment of property, plant, and equipment whenever events and circumstances indicate that depreciable assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying
amounts of those assets. When specific assets are determined to be unrecoverable, the cost basis of the asset is reduced to reflect the current fair market value.

The Company impaired outdoor advertising structures in its Americas segment by $4.0 million during 2010.

During 2009, the Company recorded a $21.0 million impairment to street furniture tangible assets in its International segment.

Intangible Assets

The Company classifies intangible assets as definite-lived,
indefinite-lived, or goodwill. Definite-lived intangibles include primarily transit and street furniture contracts, site leases and other contractual rights, all of which are amortized over the shorter or either the respective lives of the
agreements or over the period of time the assets are expected to contribute directly or indirectly to the Companys future cash flows. The Company periodically reviews the appropriateness of the amortization periods related to its
definite-lived assets. These assets are recorded at cost.



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The Company tests for possible impairment of definite-lived intangible assets whenever events and
circumstances indicate that amortizable long-lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. When specific assets are determined to be
unrecoverable, the cost basis of the asset is reduced to reflect the current fair market value.

The Company impaired certain definite-lived
intangible assets related to one airport contract in its Americas segment by $0.5 million during 2010.

The Company impaired definite-lived
intangible assets related to certain street furniture and billboard contract intangible assets in its Americas and International segments by $55.3 million during 2009.

The Companys indefinite-lived intangibles include billboard permits in its Americas segment. The Companys indefinite-lived intangibles are not subject to amortization, but are tested for
impairment at least annually. The Company tests for possible impairment of indefinite-lived intangible assets whenever events or changes in circumstances, such as a significant reduction in operating cash flow or a dramatic change in the manner for
which the asset is intended to be used indicate that the carrying amount of the asset may not be recoverable.

The Company performs its annual
impairment test for its permits using a direct valuation technique as prescribed in ASC 805-20-S99. The Company engages Mesirow Financial Consulting, LLC (Mesirow Financial), a third party valuation firm, to assist the Company in the
development of these assumptions and the Companys determination of the fair value of its permits.

The Company performed its annual
impairment test on its indefinite-lived intangible assets on October 1, 2010, which resulted in a non-cash impairment charge of $4.8 million related to its indefinite-lived permits. See Note 2 for further discussion.

The Company performed impairment tests during 2009 and 2008, which resulted in non-cash impairment charges of $345.4 million and $722.6 million,
respectively, on its indefinite-lived permits. See Note 2 for further discussion.

At least annually, the Company performs its impairment test
for each reporting units goodwill using a discounted cash flow model to determine if the carrying value of the reporting unit, including goodwill, is less than the fair value of the reporting unit. The Company identified its reporting units in
accordance with ASC 350-20-55. The Companys U.S. outdoor advertising markets are aggregated into a single reporting unit for purposes of the goodwill impairment test. The Company also determined that within its Americas segment, Canada,
Mexico, Peru, and Brazil constitute separate reporting units and each country in its International segment constitutes a separate reporting unit.

The Company performed its annual goodwill impairment test on October 1, 2010, and recognized a non-cash impairment charge of $2.1 million related to a specific reporting unit in its International
segment. See Note 2 for further discussion.

The Company performed impairment tests during 2009 and 2008, and recognized non-cash impairment
charges of $419.5 million and $2.5 billion, respectively. See Note 2 for further discussion.

Nonconsolidated Affiliates

In general, investments in which the Company owns 20 percent to 50 percent of the common stock or otherwise exercises significant
influence over the investee are accounted for under the equity method. The Company does not recognize gains or losses upon the issuance of securities by any of its equity method investees. The Company reviews the value of equity method investments
and records impairment charges in the statement of operations as a component of Equity in earnings (loss) of nonconsolidated affiliates for any decline in value that is determined to be other-than-temporary.

For the years ended December 31, 2010 and 2009, the Company recorded non-cash impairment charges of $8.3 million and $22.9 million, respectively,
related to certain equity investments in its International segment.



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Other Investments

Other investments are composed primarily of equity securities. These securities are classified as available-for-sale or trading and are carried at fair value based on quoted market prices. Securities are
carried at historical value when quoted market prices are unavailable. The net unrealized gains or losses on the available-for-sale securities, net of tax, are reported in accumulated other comprehensive loss as a component of shareholders
equity. In addition, the Company holds investments that do not have quoted market prices. The Company periodically assesses the value of available-for-sale and non-marketable securities and records impairment charges in the statement of operations
for any decline in value that is determined to be other-than-temporary. The average cost method is used to compute the realized gains and losses on sales of equity securities.

The Company periodically assesses the value of its available-for-sale securities. Based on these assessments, the Company concluded that other-than-temporary impairments existed at December 31,
2010, September 30, 2009 and December 31, 2008 and recorded non-cash impairment charges of $6.5 million, $11.3 million and $59.8 million, respectively, during each of these years. Such charges are recorded on the statement of
operations in Loss on marketable securities.

Financial Instruments

Due to their short maturity, the carrying amounts of accounts and notes receivable, accounts payable, accrued liabilities and short-term borrowings
approximated their fair values at December 31, 2010 and 2009.

Income Taxes

The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on
differences between financial reporting bases and tax bases of assets and liabilities and are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be
realized or settled. Deferred tax assets are reduced by valuation allowances if the Company believes it is more likely than not that some portion or the entire asset will not be realized. As all earnings from the Companys foreign operations
are permanently reinvested and not distributed, the Companys income tax provision does not include additional U.S. taxes on foreign operations. It is not practical to determine the amount of Federal income taxes, if any, that might become due
in the event that the earnings were distributed.

The operations of the Company are included in a consolidated Federal income tax return filed
by Clear Channel Communications for the pre-merger periods and CC Media Holdings for the post-merger periods. However, for financial reporting purposes, the Companys provision for income taxes has been computed on the basis that the Company
files separate consolidated Federal income tax returns with its subsidiaries.

Revenue Recognition

The Companys advertising contracts cover periods of a few weeks up to one year, and are generally billed monthly. Revenue for advertising space
rental is recognized ratably over the term of the contract. Advertising revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for the Companys operations.
Payments received in advance of being earned are recorded as deferred income.

Share-Based Compensation

Under the fair value recognition provisions of ASC 718-10, share-based compensation cost is measured at the grant date based on the fair value of the
award. For awards that vest based on service conditions, this cost is recognized as expense on a straight-line basis over the vesting period. For awards that will vest based on market or performance conditions, this cost will be recognized when it
becomes probable that the performance conditions will be satisfied. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. If actual
results differ significantly from these estimates, the Companys results of operations could be materially impacted.



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



Foreign Currency

Results of operations for foreign subsidiaries and foreign equity investees are translated into U.S. dollars using the average exchange rates during the year. The assets and liabilities of those
subsidiaries and investees are translated into U.S. dollars using the exchange rates at the balance sheet date. The related translation adjustments are recorded in a separate component of shareholders equity, Accumulated other
comprehensive income (loss). Foreign currency transaction gains and losses are included in operations.

Advertising Expense

The Company records advertising expense as it is incurred. Advertising expenses from continuing operations were $12.0 million, $11.2
million and $15.9 million for the post-merger years ended December 31, 2010 and 2009 and the combined period ended December 31, 2008, respectively.

Use of Estimates

The preparation of the consolidated financial statements in
conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates, judgments, and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes
including, but not limited to, legal, tax and insurance accruals. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from
those estimates.

New Accounting Pronouncements

In December 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2010-28, When to Perform Step 2 of the Goodwill
Impairment Test for Reporting Units with Zero or Negative Carrying Amounts. This ASU updates ASC Topic 350, IntangiblesGoodwill and Other,to amend the criteria for performing Step 2 of the goodwill impairment test for reporting
units with zero or negative carrying amounts and requires performing Step 2 if qualitative factors indicate that it is more likely than not that a goodwill impairment exists. The ASU is effective for fiscal years, and interim periods within those
years, beginning after December 15, 2010. The Company does not currently have any reporting units with zero or negative carrying values.

In August 2010, the FASB issued ASU No. 2010-22, Accounting for Various TopicsTechnical Corrections to SEC Paragraphs. This ASU amends
various SEC paragraphs and became effective upon issuance. The adoption of ASU No. 2010-22 did not have a material impact on the Companys financial position or results of operations.

In August 2010, the FASB issued ASU No. 2010-21, Accounting for Technical Amendments to Various SEC Rules and Schedules. This ASU amends
various SEC paragraphs pursuant to the issuance of Release No. 33-9026: Technical Amendments to Rules, Forms, Schedules and Codification of Financial Reporting Policies and became effective upon issuance. The Company adopted the provisions of
ASU 2010-21 upon issuance with no material impact to the Companys financial position or results of operations.

In February 2010, the
FASB issued ASU 2010-09, Amendments to Certain Recognition and Disclosure Requirements. ASU 2010-09 updates ASC Topic 855, Subsequent Events. ASU 2010-09 removes the requirement to disclose the date through which an entity has
evaluated subsequent events. The Company adopted the provisions of ASU 2010-09 upon issuance with no material impact to the Companys financial position or results of operations.

In January 2010, the FASB issued ASU No. 2010-06, Improving Disclosures about Fair Value Measurements. This update amends ASC Topic 820, Fair Value Measurements and Disclosures,to
require new disclosures for significant transfers in and out of Level 1 and Level 2 fair value measurements, disaggregation regarding classes of assets and liabilities, valuation techniques and inputs used to measure fair value for both recurring
and nonrecurring fair value measurements for Level 2 or Level 3. These disclosures are effective for the interim and annual reporting periods beginning after December 15, 2009. Additional new disclosures regarding the purchases, sales,
issuances and settlements in the roll forward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010 beginning with the first interim period. The Company adopted certain of the relevant
disclosure provisions of ASU 2010-06 on January 1, 2010 and adopted certain other provisions on January 1, 2011.



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



NOTE 2  PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL

Property, Plant and Equipment

The
Companys property, plant and equipment consisted of the following classes of assets at December 31, 2010 and 2009, respectively:



|                                   |  |                  |           |  |                  |   |           | 
|---------------------------------- |  | ---------------- | --------- |  | ---------------- | - | --------- | 
|(In thousands)                     |  | December 31,2010 |           |  | December 31,2009 |  
|Land, buildings and improvements   |  | $                | 206,355   |  |                  | $ | 207,939   | 
|Structures                         |  |                  | 2,623,561 |  |                  |   | 2,514,602 | 
|Furniture and other equipment      |  |                  | 86,417    |  |                  |   | 71,567    | 
|Construction in progress           |  |                  | 53,550    |  |                  |   | 51,598    | 
|                                   |  |                  |           |  |                  |   |           | 
|                                   |  |                  | 2,969,883 |  |                  |   | 2,845,706 | 
|Less accumulated depreciation      |  |                  | 672,159   |  |                  |   | 405,068   | 
|                                   |  |                  |           |  |                  |   |           | 
|Property, plant and equipment, net |  | $                | 2,297,724 |  |                  | $ | 2,440,638 | 
|                                   |  |                  |           |  |                  |   |           | 

Definite-lived Intangible Assets

The following table presents the gross carrying amount and accumulated amortization for each major class of definite-lived intangible assets at December 31, 2010 and 2009, respectively:



|                                                        |  |                      |         |  |                         |   |         |                      |  |   |                         |  |  |   |         | 
|------------------------------------------------------- |  | -------------------- | ------- |  | ----------------------- | - | ------- | -------------------- |  | - | ----------------------- |  |  | - | ------- | 
|(In thousands)                                          |  | December 31, 2010    |         |  | December 31, 2009       |  
|                                                        |  | Gross CarryingAmount |         |  | AccumulatedAmortization |   |         | Gross CarryingAmount |  |   | AccumulatedAmortization | 
|                                                        |  |                      |         | 
|Transit, street furniture, and other contractual rights |  | $                    | 789,867 |  |                         | $ | 241,461 |                      |  | $ | 803,297                 |  |  | $ | 166,803 | 
|Other                                                   |  |                      | 173,549 |  |                         |   | 16,737  |                      |  |   | 172,394                 |  |  |   | 9,744   | 
|                                                        |  |                      |         |  |                         |   |         |                      |  |   |                         |  |  |   |         | 
|Total                                                   |  | $                    | 963,416 |  |                         | $ | 258,198 |                      |  | $ | 975,691                 |  |  | $ | 176,547 | 
|                                                        |  |                      |         |  |                         |   |         |                      |  |   |                         |  |  |   |         | 

Amortization expense related to definite-lived intangible assets was $104.8 million, $101.2 million and $94.3 million for
the post-merger years ended December 31, 2010 and 2009, and the combined period ended December 31, 2008, respectively.

As
acquisitions and dispositions occur in the future, amortization expense may vary. The following table presents the Companys estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets:



|               |  |   |        | 
|-------------- |  | - | ------ | 
|(In thousands) |  |   |        | 
|2011           |  | $ | 81,502 | 
|2012           |  |   | 74,574 | 
|2013           |  |   | 71,566 | 
|2014           |  |   | 65,084 | 
|2015           |  |   | 55,111 | 



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Goodwill and Indefinite-lived Intangible Assets

The Companys indefinite-lived intangibles consist primarily of billboard permits in its Americas segment. The Companys billboard permits are
granted for the right to operate an advertising structure at the specified location as long as the structure is in compliance with the laws and regulations of each jurisdiction. The Companys permits are located on owned land, leased land or
land for which we have acquired permanent easements. In cases where the Companys permits are located on leased land, the leases typically have initial terms of between 10 and 20 years and renew indefinitely, with rental payments generally
escalating at an inflation-based index. If the Company loses its lease, the Company will typically obtain permission to relocate the permit or bank it with the municipality for future use. Due to significant differences in both business practices
and regulations, billboards in the International segment are subject to long-term, finite contracts unlike the Companys permits in the United States and Canada. Accordingly, there are no indefinite-lived assets in the International segment.

The impairment tests for indefinite-lived intangible assets consist of a comparison between the fair value of the indefinite-lived intangible
at the market level with its carrying amount. If the carrying amount of the indefinite-lived intangible exceeds its fair value, an impairment loss is recognized equal to that excess. After an impairment loss is recognized, the adjusted carrying
amount of the indefinite-lived asset is its new accounting basis. The fair value of the indefinite-lived asset is determined using the direct valuation method as prescribed in ASC 805-20-S99. Under the direct valuation method, the fair value of the
indefinite-lived assets is calculated at the market level as prescribed by ASC 350-30-35. The Company engaged Mesirow Financial, a third-party valuation firm, to assist it in the development of the assumptions and the Companys determination of
the fair value of its indefinite-lived assets.

The application of the direct valuation method attempts to isolate the income that is properly
attributable to the indefinite-lived asset alone (that is, apart from tangible and identified intangible assets and goodwill). It is based upon modeling a hypothetical greenfield build-up to a normalized enterprise that, by
design, lacks inherent goodwill and whose only other assets have essentially been paid for (or added) as part of the build-up process. The Company forecasts revenue, expenses, and cash flows over a ten-year period for each of its markets in its
application of the direct valuation method. The Company also calculates a normalized residual year which represents the perpetual cash flows of each market. The residual year cash flow was capitalized to arrive at the terminal value of
the permits in each market.

Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as
part of a going concern business, the buyer hypothetically develops indefinite-lived intangible assets and builds a new operation with similar attributes from scratch. Thus, the buyer incurs start-up costs during the build-up phase which are
normally associated with going concern value. Initial capital costs are deducted from the discounted cash flow model which results in value that is directly attributable to the indefinite-lived intangible assets.

The key assumptions using the direct valuation method are market revenue growth rates, market share, profit margin, duration and profile of the build-up
period, estimated start-up capital costs and losses incurred during the build-up period, the risk-adjusted discount rate and terminal values. This data is populated using industry normalized information representing an average billboard permit
within a market.

Annual Impairment Test to Billboard Permits

The Company performs its annual impairment test on October 1 of each year.

The aggregate
fair value of the Companys permits on October 1, 2010 increased approximately 58% from the fair value at October 1, 2009. The increase in fair value resulted primarily from improvements to general market conditions leading to
increased advertising spending, which results in higher revenues for the industry.

Although the aggregate fair values of billboard permits
increased, certain markets experienced continuing declines. As a result, impairment charges were recorded in 2010 for billboard permits of $4.8 million.



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Interim Impairments to Billboard Permits

The Company performed interim impairment tests on its billboard permits as of December 31, 2008 and again on June 30, 2009 as a result of the poor economic environment during those periods. In
determining the fair value of the Companys billboard permits, the following key assumptions were used:



| | (i) | Industry revenue growth of negative 9% and negative 16%, respectively, during the one year build-up period used in the December 31, 2008 and June 30, 2009
impairment tests;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | Cost structure reached a normalized level over a three year period and the operating margins gradually grew over that period to the industry average margins of 46% and
45%, respectively, in the December 31, 2008 and June 30, 2009 impairment tests. The margin in year three was the lower of the industry average margin or the actual margin for the market;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | Industry average revenue growth of 3% beyond the discrete build-up projection period in the December 31, 2008 and June 30, 2009 impairment tests;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv) | Discount rates of 9.5% and 10%, respectively, in the December 31, 2008 and June 30, 2009 impairment tests.
| | ---- | ----------------------------------------------------------------------------------------------------------

The discount rate used in the December 31, 2008 impairment model increased approximately 100 basis points over the discount rate used to value the
permits in the preliminary purchase price allocation as of July 30, 2008. Industry revenue forecasts declined 10% through 2013 compared to the forecasts used in the preliminary purchase price allocation as of July 30, 2008. These market
driven changes were primarily responsible for the decline in fair value of the billboard permits below their carrying value. As a result, the Company recognized a non-cash impairment charge at December 31, 2008 which totaled $722.6 million.

The discount rate used in the June 30, 2009 impairment model increased approximately 50 basis points over the discount rate used to
value the permits at December 31, 2008. Industry revenue forecasts declined 8% through 2013 compared to the forecasts used in the 2008 impairment test. These market driven changes were primarily responsible for the decline in fair value of the
billboard permits below their carrying value. As a result, the Company recognized a non-cash impairment charge at June 30, 2009 in all but five of its markets in the United States and Canada, which totaled $345.4 million.

Annual Impairment Test to Goodwill

The
Company performs its annual impairment test on October 1 of each year. The Company engaged Mesirow Financial to assist the Company in the development of its assumptions and the Companys determination of the fair value of its reporting
units.

Each of the Companys outdoor advertising markets are components. The U.S. advertising markets are aggregated into a single
reporting unit for purposes of the goodwill impairment test using the guidance in ASC 350-20-55. The Company also determined that within its Americas outdoor segment, Canada, Mexico, Peru, and Brazil constitute separate reporting units and each
country in its International segment constitutes a separate reporting unit.

The goodwill impairment test is a two-step process. The first
step, used to screen for potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If applicable, the second step, used to measure the amount of the impairment loss, compares the implied fair
value of the reporting unit goodwill with the carrying amount of that goodwill.

Each of the Companys reporting units is valued using a
discounted cash flow model which requires estimating future cash flows expected to be generated from the reporting unit, discounted to their present value using a risk-adjusted discount rate. Terminal values were also estimated and discounted to
their present value. Assessing the recoverability of goodwill requires the Company to make estimates and assumptions about sales, operating margins, growth rates and discount rates based on its budgets, business plans, economic projections,
anticipated future cash flows and marketplace data. There are inherent uncertainties related to these factors and managements judgment in applying these factors.



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The following table presents the changes in the carrying amount of goodwill for each reporting unit. As
a result of the merger, a new basis in goodwill was recorded in accordance with ASC 805-10. All impairments shown in the table below have been recorded subsequent to the merger and, therefore, do not include any pre-merger impairment.



|                                        |  |          |          |   |               |   |         |       |  |   |           |  
|--------------------------------------- |  | -------- | -------- | - | ------------- | - | ------- | ----- |  | - | --------- | -
|(In thousands)                          |  |          |          |   |               |   |         |       | 
|                                        |  |          |         
|                                        |  | Americas |          |   | International |   |         | Total | 
|Post-Merger                             |  |          |          |   |               |   |         |       |  |   |           |  
|Balance as of December 31, 2008         |  | $        | 892,598  |   |               | $ | 287,543 |       |  | $ | 1,180,141 |  
|Net adjustments to push down accounting |  |          | 68,896   |   |               |   | 45,042  |       |  |   | 113,938   |  
|Acquisitions                            |  |          | 2,250    |   |               |   | 110     |       |  |   | 2,360     |  
|Foreign currency translation            |  |          | 16,293   |   |               |   | 17,412  |       |  |   | 33,705    |  
|Impairment                              |  |          | (390,374 | ) |               |   | (73,764 | )     |  |   | (464,138  | )
|Adjustments                             |  |          | (4,414   | ) |               |   |        |       |  |   | (4,414    | )
|                                        |  |          |          |   |               |   |         |       |  |   |           |  
|Balance as of December 31, 2009         |  | $        | 585,249  |   |               | $ | 276,343 |       |  | $ | 861,592   |  
|Foreign currency translation            |  |          | 285      |   |               |   | 3,299   |       |  |   | 3,584     |  
|Impairment                              |  |          |         |   |               |   | (2,142  | )     |  |   | (2,142    | )
|Adjustments                             |  |          |         |   |               |   | (792    | )     |  |   | (792      | )
|                                        |  |          |          |   |               |   |         |       |  |   |           |  
|Balance as of December 31, 2010         |  | $        | 585,534  |   |               | $ | 276,708 |       |  | $ | 862,242   |  
|                                        |  |          |          |   |               |   |         |       |  |   |           |  

The balance at December 31, 2008 is net of cumulative impairments of $2.3 billion and $173.4 million in the Americas
and International segments, respectively.

The fair value of the Companys reporting units on October 1, 2010 increased from the
fair value at October 1, 2009. The increase in the fair value of the Companys Americas reporting unit was primarily the result of a $638.6 million increase related to forecast revenues and operating margins. As a result of increase in
fair value across the Companys Americas reporting unit, no goodwill impairment was recognized in this segment. Within the Companys International segment, one country experienced a decline in fair value which resulted in a $2.1 million
non-cash impairment to goodwill.

Interim Impairment Tests to Goodwill

The discounted cash flow model indicated that the Company failed the first step of the impairment test for certain of its reporting units as of December 31, 2008 and June 30, 2009, which
required it to compare the implied fair value of each reporting units goodwill with its carrying value.

The Company forecasted revenue,
expenses, and cash flows over a ten-year period for each of its reporting units. Historically, revenues in its industries have been highly correlated to economic cycles. Based on this consideration, among others, the assumed 2008 and 2009 revenue
growth rates used in the December 31, 2008 and June 30, 2009 impairment models were negative followed by assumed revenue growth with an anticipated economic recovery in 2009 and 2010, respectively. The Company also calculated a
normalized residual year which represents the perpetual cash flows of each reporting unit. The residual year cash flow was capitalized to arrive at the terminal value of the reporting unit.

The Company calculated the weighted average cost of capital (WACC) as of December 31, 2008 resulting in WACCs of 12.5% for the reporting
units in both the Americas and International segments. As of June 30, 2009, the Company calculated WACCs of 12.5% and 13.5% for each of the reporting units in the Americas and International segments, respectively.

The Company also utilized the market approach to provide a test of reasonableness to the results of the discounted cash flow model. The market approach
indicates the fair value of the invested capital of a business based on a companys market capitalization (if publicly traded) and a comparison of the business to comparable publicly traded companies and transactions in its industry. This
approach can be estimated through the quoted market price method, the market comparable method, and the market transaction method. The three variations of the market approach indicated that the fair value determined by the Companys discounted
cash flow model was within a reasonable range of outcomes as of December 31, 2008 and June 30, 2009.



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The revenue forecasts for 2009 declined 21% and 29% for Americas and International, respectively,
compared to the forecasts used in the July 30, 2008 preliminary purchase price allocation primarily as a result of the revenues realized for the year ended December 31, 2008. These market driven changes were primarily responsible for the
decline in fair value of the reporting units below their carrying value. As a result, the Company recognized a non-cash impairment charge to reduce its goodwill of $2.5 billion at December 31, 2008.

The revenue forecasts for 2009 declined 7% and 9% for Americas and International, respectively, compared to the forecasts used in the 2008 impairment
test primarily as a result of the revenues realized during the first six months of 2009. These market driven changes were primarily responsible for the decline in fair value of the reporting units below their carrying value. As a result, the Company
recognized a non-cash impairment charge to reduce its goodwill of $419.5 million at June 30, 2009.

NOTE 3  BUSINESS
ACQUISITIONS

2009 Purchases of Additional Equity Interests

During 2009, the Companys Americas outdoor segment purchased the remaining 15% interest in its consolidated subsidiary, Paneles Napsa S.A., for $13.0 million and the Companys International
outdoor segment acquired an additional 5% interest in its consolidated subsidiary, Clear Channel Jolly Pubblicita SPA, for $12.1 million.

NOTE 4  INVESTMENTS

The
Companys most significant investments in nonconsolidated affiliates are listed below:

Clear Channel Independent

The Company owned a 50% interest in Clear Channel Independent (CCI), formerly known as Corp Comm, a South African outdoor
advertising company. In the first quarter of 2008, the Company sold its 50% interest in CCI and recognized a gain of $75.6 million in Equity in earnings of nonconsolidated affiliates based on the fair value of the equity securities
received in the pre-merger period ended July 30, 2008. The equity securities received are classified as available-for-sale and recorded as Other investments on the consolidated balance sheet.

Alessi

The Company owns a 49%
interest in Alessi, an Italian outdoor advertising company.

Buspak

The Company owns a 50% interest in Buspak, an outdoor advertising company in Hong Kong.



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Summarized Financial Information

The following table summarizes the Companys investments in nonconsolidated affiliates:

(In thousands)



|                                         |  |        |         |   |        |   |        |           |  |   |         |   |  |   |         |  
|---------------------------------------- |  | ------ | ------- | - | ------ | - | ------ | --------- |  | - | ------- | - |  | - | ------- | -
|                                         |  | Alessi |         |   | Buspak |   |        | AllOthers |  |   | Total   |  
|Balance as of December 31, 2008          |  | $      | 21,987  |   |        | $ | 10,364 |           |  | $ | 19,461  |   |  | $ | 51,812  |  
|Equity in net earnings (loss)            |  |        | (12,161 | ) |        |   | (616   | )         |  |   | (18,665 | ) |  |   | (31,442 | )
|Other, net                               |  |        | (698    | ) |        |   | (690   | )         |  |   | 3,553   |   |  |   | 2,165   |  
|Foreign currency translation adjustments |  |        | (87     | ) |        |   | 474    |           |  |   | 432     |   |  |   | 819     |  
|                                         |  |        |         |   |        |   |        |           |  |   |         |   |  |   |         |  
|Balance as of December 31, 2009          |  | $      | 9,041   |   |        |   | 9,532  |           |  | $ | 4,781   |   |  | $ | 23,354  |  
|                                         |  |        |         |   |        |   |        |           |  |   |         |   |  |   |         |  
|Equity in net earnings (loss)            |  |        | (8,453  | ) |        |   | 439    |           |  |   | (1,922  | ) |  |   | (9,936  | )
|Other, net                               |  |        |        |   |        |   | (2,231 | )         |  |   | 3,042   |   |  |   | 811     |  
|Foreign currency translation adjustments |  |        | (588    | ) |        |   | (21    | )         |  |   | 175     |   |  |   | (434    | )
|                                         |  |        |         |   |        |   |        |           |  |   |         |   |  |   |         |  
|Balance as of December 31, 2010          |  | $      |        |   |        | $ | 7,719  |           |  | $ | 6,076   |   |  | $ | 13,795  |  
|                                         |  |        |         |   |        |   |        |           |  |   |         |   |  |   |         |  

The investments in the table above are not consolidated, but are accounted for under the equity method of accounting,
whereby the Company records its investments in these entities in the balance sheet as Other assets. The Companys interests in their operations are recorded in the statement of operations as Equity in earnings (loss) of
nonconsolidated affiliates.

Other Investments

Other investments of $8.2 million and $17.0 million at December 31, 2010 and 2009 primarily represent marketable equity securities.



|                       |  |                   |       |  |                       |   |   |                      |  |   |           |  |  |      |       |  |                       |   |        |                      |  |   |           |  |  |   |       |  |  |   |        | 
|---------------------- |  | ----------------- | ----- |  | --------------------- | - | - | -------------------- |  | - | --------- |  |  | ---- | ----- |  | --------------------- | - | ------ | -------------------- |  | - | --------- |  |  | - | ----- |  |  | - | ------ | 
|(In thousands)         |  | December 31, 2010 |       |  | December 31, 2009     |  
|Investments            |  | Cost              |       |  | GrossUnrealizedLosses |   |   | GrossUnrealizedGains |  |   | FairValue |  |  | Cost |       |  | GrossUnrealizedLosses |   |        | GrossUnrealizedGains |  |   | FairValue | 
|Available-for sale     |  | $                 | 8,016 |  |                       | $ |  |                      |  | $ | 82        |  |  | $    | 8,098 |  |                       | $ | 14,506 |                      |  | $ |          |  |  | $ | 1,405 |  |  | $ | 15,911 | 
|Other cost investments |  | $                 | 77    |  |                       | $ |  |                      |  | $ |          |  |  | $    | 77    |  |                       | $ | 1,087  |                      |  | $ |          |  |  | $ |      |  |  | $ | 1,087  | 

The Companys available-for-sale
security, Independent News & Media PLC (INM), was in an unrealized loss position for an extended period of time in 2008 and 2009. As a result, the Company considered the guidance in ASC 320-10-S99 and reviewed the length of the
time and the extent to which the market value was less than cost and the financial condition and near-term prospects of the issuer. After this assessment, the Company concluded that the impairment was other than temporary and recorded a non-cash
impairment charge of $11.3 million and $59.8 million in Loss on marketable securities for the years ended December 31, 2009 and 2008, respectively.

The fair value of this investment has continued to decline throughout 2010 and the Company has concluded based on the guidance in ASC 320-10-S99 that such decline is other than temporary. Accordingly, the
Company recorded a non-cash impairment charge of $6.5 million in 2010 to write the investment down to fair value, recorded in Gain (loss) on marketable securities.

Other cost investments include various investments in companies for which there is no readily determinable market value.



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NOTE 5  ASSET RETIREMENT OBLIGATION

The Companys asset retirement obligation is reported in Other long-term liabilities and relates to its obligation to dismantle and
remove its advertising displays from leased land and to reclaim the site to its original condition upon the termination or non-renewal of a lease. Asset retirement obligations are also recorded as necessary for other structures residing on leased
property. When the liability is recorded, the cost is capitalized as part of the related long-lived assets carrying value. Due to the high rate of lease renewals over a long period of time, the calculation assumes that all related assets will
be removed at some period over the next 50 years. An estimate of third-party cost information is used with respect to the dismantling of the structures and the reclamation of the site. The interest rate used to calculate the present value of such
costs over the retirement period is based on an estimated risk adjusted credit rate for the same period.

The following table presents the
activity related to the Companys asset retirement obligation:



|                                                      |  |                          |        |   |      |   |        |  
|----------------------------------------------------- |  | ------------------------ | ------ | - | ---- | - | ------ | -
|(In thousands)                                        |  | Years Ended December 31, |       
|                                                      |  | 2010                     |        |   | 2009 |  
|Beginning balance                                     |  | $                        | 51,301 |   |      | $ | 55,592 |  
|Adjustment due to change in estimate of related costs |  |                          | (5,295 | ) |      |   | (6,721 | )
|Accretion of liability                                |  |                          | 4,822  |   |      |   | 5,209  |  
|Liabilities settled                                   |  |                          | (2,565 | ) |      |   | (2,779 | )
|                                                      |  |                          |        |   |      |   |        |  
|Ending balance                                        |  | $                        | 48,263 |   |      | $ | 51,301 |  
|                                                      |  |                          |        |   |      |   |        |  

NOTE 6  LONG-TERM DEBT

Long-term debt at December 31, 2010 and 2009 consisted of the following:



|                                                                                                                                                                                                                                  |  |                    |           |  |      |   |           | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | --------- |  | ---- | - | --------- | 
|(In thousands)                                                                                                                                                                                                                    |  | As of December 31, |          
|                                                                                                                                                                                                                                  |  | 2010               |           |  | 2009 |  
|Bank credit facility ($150.0 million sub-limit within Clear Channel Communications $2.0 billion facility, $150.0 million
and $120.0 million of which was drawn by Clear Channel Communications as of December 31, 2010 and 2009) |  | $                  |          |  |      | $ | 30,000    | 
|Clear Channel Worldwide Holdings Senior Notes:                                                                                                                                                                                    |  |                    |           |  |      |   |           | 
|9.25% Series A Senior Notes Due 2017                                                                                                                                                                                              |  |                    | 500,000   |  |      |   | 500,000   | 
|9.25% Series B Senior Notes Due 2017                                                                                                                                                                                              |  |                    | 2,000,000 |  |      |   | 2,000,000 | 
|Other debt                                                                                                                                                                                                                        |  |                    | 63,809    |  |      |   | 78,878    | 
|                                                                                                                                                                                                                                  |  |                    |           |  |      |   |           | 
|                                                                                                                                                                                                                                  |  |                    | 2,563,809 |  |      |   | 2,608,878 | 
|Less: current portion                                                                                                                                                                                                             |  |                    | 41,676    |  |      |   | 47,073    | 
|                                                                                                                                                                                                                                  |  |                    |           |  |      |   |           | 
|Total long-term debt                                                                                                                                                                                                              |  | $                  | 2,522,133 |  |      | $ | 2,561,805 | 
|                                                                                                                                                                                                                                  |  |                    |           |  |      |   |           | 

The aggregate market value of the Companys debt based on quoted market prices for which quotes were available was
approximately $2.8 billion and $2.7 billion at December 31, 2010 and 2009, respectively.

Debt with Clear Channel Communications

As of December 31, 2008, the Company had a note in the original principal amount of $2.5 billion to Clear Channel
Communications which was prepayable in whole at any time, or in part from time to time. The note accrued interest at a variable per annum rate equal to the weighted average cost of debt for Clear Channel Communications, calculated on a monthly
basis. In December 2009, the Company made voluntary prepayments on the note in the amount of the total outstanding balance and subsequently retired the Debt with Clear Channel Communications. The interest rate on the $2.5 billion note
was 5.7% prior to its retirement. See Note 8 for further discussion.



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Bank Credit Facility

In connection with the merger, Clear Channel Communications entered into a multi-currency revolving credit facility with a maturity in July 2014 in the amount of $2.0 billion. Certain of the
Companys International subsidiaries may borrow under a $150.0 million sub-limit within this $2.0 billion credit facility, to the extent Clear Channel Communications has not already borrowed against this capacity and is in compliance with its
covenants under the credit facility. This sub-limit allows for borrowings in various foreign currencies, which are used to hedge net assets in those currencies and provide funds to the Companys International operations for certain working
capital needs. The obligations of these International subsidiaries that are borrowers under the revolving credit facility are guaranteed by certain of the Companys material wholly-owned subsidiaries, and secured by substantially all assets of
such borrowers and guarantors, subject to permitted liens and other exceptions. The interest rate is based upon LIBOR or, for Euro denominated borrowings, EURIBOR, plus, in each case, a margin. As of December 31, 2010, the Company had no
outstanding borrowings under the $150.0 million sub-limit facility as Clear Channel Communications had already borrowed against the entire capacity. As of December 31, 2009, the outstanding balance on the sub-limit was approximately $150.0
million of which $30.0 million was drawn by the Company and the remaining amount drawn by Clear Channel Communications.

Clear Channel
Worldwide Holdings Senior Notes

As of December 31, 2010, the Companys subsidiary, Clear Channel Worldwide Holdings, Inc.
(CCWH), had outstanding $500.0 million aggregate principal amount of Series A Senior Notes due 2017 (the Series A Notes) and $2.0 billion aggregate principal amount of Series B Senior Notes due 2017 (the Series B
Notes and together with the Series A Notes, the CCWH Notes). The CCWH Notes are guaranteed by the Company, Clear Channel Outdoor, Inc. (CCOI), the Companys wholly-owned subsidiary, and certain of the
Companys direct and indirect subsidiaries.

The CCWH Notes bear interest on a daily basis and contain customary provisions, including
covenants requiring the Company to maintain certain levels of credit availability and limitations on incurring additional debt.

The CCWH
Notes are senior obligations that rank pari passu in right of payment to all unsubordinated indebtedness of CCWH and the guarantees of the CCWH Notes rank pari passu in right of payment to all unsubordinated indebtedness of the guarantors.

The indentures governing the CCWH Notes require the Company to maintain at least $100 million in cash or other liquid assets or have cash
available to be borrowed under committed credit facilities consisting of (i) $50.0 million at the issuer and guarantor entities (principally the Americas outdoor segment) and (ii) $50.0 million at the non-guarantor subsidiaries
(principally the International outdoor segment) (together the Liquidity Amount), in each case under the sole control of the relevant entity. In the event of a bankruptcy, liquidation, dissolution, reorganization, or similar proceeding of
Clear Channel Communications, for the period thereafter that is the shorter of such proceeding and 60 days, the Liquidity Amount shall be reduced to $50.0 million, with a $25.0 million requirement at the issuer and guarantor entities and a $25.0
million requirement at the non-guarantor subsidiaries.

In addition, interest on the CCWH Notes accrues daily and is payable into an account
established by the trustee for the benefit of the bondholders (the Trustee Account). Failure to make daily payment on any day does not constitute an event of default so long as (a) no payment or other transfer by the Company or any
of its subsidiaries shall have been made on such day under the cash management sweep with Clear Channel Communications, and (b) on each semiannual interest payment date the aggregate amount of funds in the Trustee Account is equal to at least
the aggregate amount of accrued and unpaid interest on the CCWH Notes.

The indenture governing the Series A Notes contains covenants that
limit the Company and its restricted subsidiaries ability to, among other things:



| |  |  | incur or guarantee additional debt to persons other than Clear Channel Communications and its subsidiaries or issue certain preferred stock;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | create liens on its restricted subsidiaries assets to secure such debt;
| | - |  | ------------------------------------------------------------------------



| |  |  | create restrictions on the payment of dividends or other amounts to the Company from its restricted subsidiaries that are not guarantors of the notes;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | enter into certain transactions with affiliates;
| | - |  | ------------------------------------------------



| |  |  | merge or consolidate with another person, or sell or otherwise dispose of all or substantially all of its assets; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | sell certain assets, including capital stock of its subsidiaries, to persons other than Clear Channel Communications and its subsidiaries.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------

The indenture governing the Series A Notes does not include limitations on dividends, distributions, investments or asset
sales.

The indenture governing the Series B Notes contains covenants that limit the Company and its restricted subsidiaries ability to, among
other things:



| |  |  | incur or guarantee additional debt or issue certain preferred stock;
| | - |  | --------------------------------------------------------------------



| |  |  | redeem, repurchase or retire the Companys subordinated debt;
| | - |  | -------------------------------------------------------------



| |  |  | make certain investments;
| | - |  | -------------------------



| |  |  | create liens on its or its restricted subsidiaries assets to secure debt;
| | - |  | --------------------------------------------------------------------------



| |  |  | create restrictions on the payment of dividends or other amounts to it from its restricted subsidiaries that are not guarantors of the CCWH Notes;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | enter into certain transactions with affiliates;
| | - |  | ------------------------------------------------



| |  |  | merge or consolidate with another person, or sell or otherwise dispose of all or substantially all of its assets;
| | - |  | -----------------------------------------------------------------------------------------------------------------



| |  |  | sell certain assets, including capital stock of its subsidiaries;
| | - |  | -----------------------------------------------------------------



| |  |  | designate its subsidiaries as unrestricted subsidiaries;
| | - |  | --------------------------------------------------------



| |  |  | pay dividends, redeem or repurchase capital stock or make other restricted payments; and
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | purchase or otherwise effectively cancel or retire any of the Series B Notes if after doing so the ratio of (a) the outstanding aggregate
principal amount of the Series A Notes to (b) the outstanding aggregate principal amount of the Series B Notes shall be greater than 0.250. This stipulation ensures, among other things, that as long as the Series A Notes are outstanding, the
Series B Notes are outstanding.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Series A Notes indenture and the Series B Notes indenture restrict the Companys
ability to incur additional indebtedness but permit the Company to incur additional indebtedness based on an incurrence test. In order to incur additional indebtedness under this test, the Companys debt to adjusted EBITDA ratios (as defined by
the indentures) must be lower than 6.5:1 and 3.25:1 for total debt and senior debt, respectively. The indentures contain certain other exceptions that allow the Company to incur additional indebtedness. The Series B Notes indenture also permits the
Company to pay dividends from the proceeds of indebtedness or the proceeds from asset sales if the Companys debt to adjusted EBITDA ratios (as defined by the indenture) are lower than 6.0:1 and 3.0:1 for total debt and senior debt,
respectively. The Series A Notes indenture does not limit the Companys ability to pay dividends. The Series B Notes indenture contains certain exceptions that allow the Company to incur additional indebtedness and pay dividends, including a
$500 million exception for the payment of dividends. The Company was in compliance with these covenants as of December 31, 2010.

Prior
to the date of the closing of the CCWH Notes offering, the Company made a demand for and received repayment of $500.0 million on the Due from Clear Channel Communications account.

Following such repayment, the Company contributed $500.0 million to the capital of CCOI, which used the proceeds received by it to prepay $500.0 million of the Debt with Clear Channel
Communications account. Subsequent to this repayment, the outstanding balance of the Debt with Clear Channel Communications account was $2.0 billion.

A portion of the proceeds of the CCWH Notes offering were used to (i) pay the fees and expenses of the offering, (ii) fund $50.0 million of the Liquidity Amount (the $50.0 million Liquidity
Amount of the non-guarantor subsidiaries was satisfied) and (iii) make a voluntary prepayment of the remaining $2.0 billion outstanding balance (which is equal to the aggregate principal amount of the Series B Notes) under the note to Clear
Channel Communications and subsequently retire the Debt with Clear Channel Communications, with the balance of the proceeds available for general corporate purposes.



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In connection with the offering, Clear Channel Communications and the Company modified the terms of the
revolving promissory notes (recorded as Due from/to Clear Channel Communications account) to extend the maturity of each revolving promissory note to coincide with the maturity date of the CCWH Notes. In addition, the terms were modified to change
the interest rate on each revolving promissory note to a fixed per annum rate equal to 9.25%.

Clear Channel Communications
Refinancing Transactions

Clear Channel Communications announced on February 7, 2011 that it intends to offer, subject to market
and customary conditions, $750 million in aggregate principal amount of priority guarantee notes due 2021 (the Notes) in a private offering that is exempt from registration under the Securities Act of 1933, as amended. Clear Channel
Communications intends to use the proceeds of the Notes together with cash on hand to repay $500 million of the indebtedness outstanding under its senior secured credit facilities, to repay at maturity $250 million in aggregate principal amount of
its 6.25% senior notes due 2011, to pay fees and expenses incurred in connection with concurrent amendments to its senior secured credit facilities and its receivables based credit facility, the receipt of which is a condition to completion of the
offering, and to pay fees and expenses in connection with the offering.

The concurrent amendments to its senior secured credit facilities and
its receivables based credit facility would, among other things, permit Clear Channel Communications to request future extensions of the maturities of its senior secured credit facilities, provide Clear Channel Communications with greater
flexibility in the use of its accordion provisions, provide Clear Channel Communications with greater flexibility to incur new debt, provided that such new debt is used to pay down senior secured credit facility indebtedness, and provide greater
flexibility for the Company and its subsidiaries to incur new debt (provided the incurrence of that new debt is otherwise permitted to be incurred by such subsidiaries).

The Notes and related guarantees will be offered only to qualified institutional buyers in reliance on the exemption from registration pursuant to Rule 144A under the Securities Act and to
persons outside of the United States in compliance with Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may
not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

This disclosure is for informational purposes only and shall not constitute an offer to sell nor the solicitation of an offer to buy the Notes or any
other securities. The Notes offering is not being made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful. Any offers of the Notes will be made only by means of a private offering circular.

Other Debt

Other debt includes
various borrowings and capital leases utilized for general operating purposes. Included in the $63.8 million balance at December 31, 2010 is $41.7 million that matures in less than one year.

Debt Covenants

The Clear Channel
Communications $2.0 billion revolving credit facility contains a significant financial covenant which requires Clear Channel Communications to comply on a quarterly basis with a maximum consolidated senior secured net debt to adjusted EBITDA
ratio (maximum of 9.5:1). The financial covenant becomes more restrictive over time beginning in the second quarter of 2013. In its Annual Report on Form 10-K filed with the SEC on February 14, 2011, CC Media Holdings stated that it was in
compliance with this covenant as of December 31, 2010.



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In addition, the Company was in compliance with the covenants contained in the Series A Notes indenture
and the Series B Notes indenture as of December 31, 2010.

There are no significant covenants or events of default contained in the
revolving promissory note issued by Clear Channel Communications to the Company or the revolving promissory note issued by the Company to Clear Channel Communications.

Future maturities of long-term debt as of December 31, 2010 are as follows:





|               |  |   |           | 
|-------------- |  | - | --------- | 
|(In thousands) |  |   |           | 
|2011           |  | $ | 41,676    | 
|2012           |  |   | 22,101    | 
|2013           |  |   | 32        | 
|2014           |  |   |          | 
|2015           |  |   |          | 
|Thereafter     |  |   | 2,500,000 | 
|               |  |   |           | 
|Total          |  | $ | 2,563,809 | 
|               |  |   |           | 

NOTE 7  COMMITMENTS, CONTINGENCIES AND GUARANTEES

The Company accounts for its rentals that include renewal options, annual rent escalation clauses, minimum franchise payments and maintenance related to displays under the guidance in ASC 840.

The Company considers its non-cancelable contracts that enable it to display advertising on buses, trains, bus shelters, etc. to be leases in accordance
with the guidance in ASC 840-10. These contracts may contain minimum annual franchise payments which generally escalate each year. The Company accounts for these minimum franchise payments on a straight-line basis. If the rental increases are not
scheduled in the lease, for example an increase based on the CPI, those rents are considered contingent rentals and are recorded as expense when accruable. Other contracts may contain a variable rent component based on revenue. The Company accounts
for these variable components as contingent rentals and records these payments as expense when accruable. In addition, the Company has commitments relating to required purchases of property, plant, and equipment under certain street furniture
contracts.

The Company accounts for annual rent escalation clauses included in the lease term on a straight-line basis under the guidance in
ASC 840-10. The Company considers renewal periods in determining its lease terms if at inception of the lease there is reasonable assurance the lease will be renewed. Expenditures for maintenance are charged to operations as incurred, whereas
expenditures for renewal and betterments are capitalized.

The Company leases office space, equipment and the majority of the land occupied by
its advertising structures under long-term operating leases. The Company accounts for these leases in accordance with the policies described above.

The Companys contracts with municipal bodies or private companies relating to street furniture, billboards, transit and malls generally require the Company to build bus stops, kiosks and other
public amenities or advertising structures during the term of the contract. The Company owns these structures and is generally allowed to advertise on them for the remaining term of the contract. Once the Company has built the structure, the cost is
capitalized and expensed over the shorter of the economic life of the asset or the remaining life of the contract.

Certain of the
Companys contracts contain penalties for not fulfilling its commitments related to its obligations to build bus stops, kiosks and other public amenities or advertising structures. Historically, any such penalties have not materially impacted
the Companys financial position or results of operations.



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As of December 31, 2010, the Companys future minimum rental commitments under non-cancelable
operating lease agreements with terms in excess of one year, minimum payments under non-cancelable contracts in excess of one year, and capital expenditure commitments consist of the following:



|               |  |                                  |           |  |                           |   |           |                               |  |   |         | 
|-------------- |  | -------------------------------- | --------- |  | ------------------------- | - | --------- | ----------------------------- |  | - | ------- | 
|(In thousands) |  | Non-Cancelable  Operating Leases |           |  | Non-Cancelable  Contracts |   |           | CapitalExpenditureCommitments | 
|2011           |  | $                                | 270,235   |  |                           | $ | 394,632   |                               |  | $ | 48,059  | 
|2012           |  |                                  | 224,621   |  |                           |   | 291,667   |                               |  |   | 28,501  | 
|2013           |  |                                  | 207,700   |  |                           |   | 229,639   |                               |  |   | 15,486  | 
|2014           |  |                                  | 181,974   |  |                           |   | 201,534   |                               |  |   | 7,395   | 
|2015           |  |                                  | 181,213   |  |                           |   | 178,655   |                               |  |   | 4,344   | 
|Thereafter     |  |                                  | 970,054   |  |                           |   | 527,977   |                               |  |   | 3,322   | 
|               |  |                                  |           |  |                           |   |           |                               |  |   |         | 
|Total          |  | $                                | 2,035,797 |  |                           | $ | 1,824,104 |                               |  | $ | 107,107 | 
|               |  |                                  |           |  |                           |   |           |                               |  |   |         | 

Rent expense charged to operations for the years ended December 31, 2010 and 2009 was $967.5 million and $999.1
million, respectively. Rent expense for the post-merger period from July 31, 2008 to December 31, 2008 and the pre-merger period from January 1, 2008 to July 30, 2008 was $476.8 million $685.2 million, respectively.

The Company and its subsidiaries are currently involved in certain legal proceedings arising in the ordinary course of business and, as required, the
Company has accrued its estimate of the probable costs for resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are
based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in the
Companys assumptions or the effectiveness of its strategies related to these proceedings.

In 2006, two of the Companys operating
businesses (L&C Outdoor Ltda. (L&C) and Publicidad Klimes Sao Paulo Ltda. (Klimes), respectively) in the Sao Paulo, Brazil market received notices of infraction from the state taxing authority, seeking to impose a
value added tax (VAT) on such businesses, retroactively for the period from December 31, 2001 through January 31, 2006. The taxing authority contends that the Companys businesses fall within the definition of
communication services and as such are subject to the VAT.

The Company has filed petitions to challenge the imposition of this
tax against each of its businesses, which are proceeding separately. The Companys challenge for L&C was unsuccessful at the first administrative level, but successful at the second administrative level. The state taxing authority filed an
appeal to the third and final administrative level, which required consideration by a full panel of 16 administrative law judges. On September 27, 2010, the Company received an unfavorable ruling at this final administrative level concluding
that the VAT applied to L&C and intends to appeal this ruling to the judicial level. The Company has filed a petition to have the case remanded to the second administrative level for consideration of the reasonableness of the amount of the
penalty assessed against it. The amounts allegedly owed by L&C are approximately $9.3 million in taxes, approximately $18.6 million in penalties and approximately $25.8 million in interest (as of December 31, 2010 at an exchange rate
of .58).

The Companys challenge for Klimes was unsuccessful at the first administrative level, and denied at the second administrative
level on or about September 24, 2009. On January 5, 2011, the administrative law judges at the third administrative level published a ruling that the VAT applies to Klimes as well but did reduce the penalty assessed by the state taxing
authority. With the penalty reduction, the amounts allegedly owed by Klimes are approximately $10.5 million in taxes, approximately $5.2 million in penalties and approximately $16.1 million in interest (as of December 31, 2010 at an
exchange rate of .58). In mid-January 2011, the taxing authority filed an extraordinary appeal to the third administrative level, asking that it reconsider the decision to reduce the penalty assessed against Klimes. The president of the third
administrative level must decide whether to accept that appeal before it can proceed. Based on the Companys review of the law in similar cases in other Brazilian states, the Company has not accrued any costs related to these claims and
believes the occurrence of loss is not probable.



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In various areas in which the Company operates, outdoor advertising is the object of restrictive and, in
some cases, prohibitive zoning and other regulatory provisions, either enacted or proposed. The impact to the Company of loss of displays due to governmental action has been somewhat mitigated by Federal and state laws mandating compensation for
such loss and constitutional restraints.

Certain acquisition agreements include deferred consideration payments based on performance
requirements by the seller, typically involving the completion of a development or obtaining appropriate permits that enable the Company to construct additional advertising displays. At December 31, 2010, the Company believes its maximum
aggregate contingency, which is subject to performance requirements by the seller, is approximately $35.0 million. As the contingencies have not been met or resolved as of December 31, 2010, these amounts are not recorded. If future payments
are made, amounts will be recorded as additional purchase price.

As of December 31, 2010, Clear Channel Communications had outstanding
commercial standby letters of credit and surety bonds of $47.1 million and $43.0 million, respectively, held on behalf of the Company. These letters of credit and surety bonds relate to various operational matters, including insurance, bid and
performance bonds, as well as other items. Additionally, in the fourth quarter of 2010, the Company entered into a cash secured letter of credit facility. As of December 31, 2010, the Company had $9.2 million in letters of credit outstanding
under this facility.

NOTE 8  RELATED PARTY TRANSACTIONS

The Company records net amounts due to or from Clear Channel Communications as Due from/to Clear Channel Communications on the consolidated balance sheets. The accounts represent the revolving
promissory note issued by the Company to Clear Channel Communications and the revolving promissory note issued by Clear Channel Communications to the Company, in the face amount of $1.0 billion, or if more or less than such amount, the aggregate
unpaid principal amount of all advances. The accounts accrue interest pursuant to the terms of the promissory notes and are generally payable on demand. Prior to the amendment of the revolving promissory notes in December 2009, interest on the
revolving promissory note owed by the Company accrued on the daily net negative cash position based upon LIBOR plus a margin. Interest on the revolving promissory note owed by Clear Channel Communications accrued interest on the daily net positive
cash position based upon the average one-month generic treasury bill rate. In connection with the issuance of the CCWH Notes described in Note 6, Clear Channel Communications and the Company modified the terms of the revolving promissory notes to
extend the maturity of each revolving promissory note to coincide with the maturity date of the CCWH Notes. In addition, the terms were modified to change the interest rate on each revolving promissory note to equal the interest rate on the CCWH
Notes. Included in the accounts are the net activities resulting from day-to-day cash management services provided by Clear Channel Communications. As a part of these services, the Company maintains collection bank accounts swept daily into accounts
of Clear Channel Communications (after satisfying the funding requirements of the Trustee Account). In return, Clear Channel Communications funds the Companys controlled disbursement accounts as checks or electronic payments are presented for
payment. The Companys claim in relation to cash transferred from its concentration account is on an unsecured basis and is limited to the balance of the Due from Clear Channel Communications account.

At December 31, 2010 and 2009, the asset recorded in Due from Clear Channel Communications on the consolidated balance sheet was $383.8
million and $123.3 million, respectively. At December 31, 2010, the interest rate on the Due from Clear Channel Communications account was 9.25%, which represents the interest rate on the CCWH Notes as described above.

The net interest income for the post-merger years ended December 31, 2010 and 2009 was $19.5 million and $0.7 million, respectively. The net
interest income for the post-merger period from July 31, 2008 through December 31, 2008 was $0.9 million. The net interest income for the pre-merger period from January 1, 2008 through July 30, 2008 was $2.6 million.

At December 31, 2008, the Company had a note in the original principal amount of $2.5 billion to Clear Channel Communications which was
prepayable in whole at any time, or in part from time to time. This note accrued interest at a variable per annum rate equal to the weighted average cost of debt for Clear Channel Communications, calculated on a monthly basis. This note was
mandatorily payable upon a change of control of the Company (as



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defined in the note) and, subject to certain exceptions, all net proceeds from debt or equity raised by the Company had to be used to prepay such note. In December 2009, the Company made
voluntary payments on the note in the amount of the total outstanding balance and subsequently retired the Debt with Clear Channel Communications as of December 31, 2009. The interest rate on the $2.5 billion note was 5.7% prior to
its retirement.

Clear Channel Communications has a $2.0 billion multi-currency revolving credit facility with a maturity in July 2014 which
includes a $150.0 million sub-limit that certain of the Companys International subsidiaries may borrow against to the extent Clear Channel Communications has not already borrowed against this capacity and is compliance with its covenants under
the credit facility. The obligations of these International subsidiaries that are borrowers under the revolving credit facility will be guaranteed by certain of the Companys material wholly-owned subsidiaries, and secured by substantially all
assets of such borrowers and guarantors, subject to permitted liens and other exceptions. The interest rate on outstanding balances under the new credit facility is equal to an applicable margin plus, at Clear Channel Communications option,
either (i) a base rate determined by reference to the higher of (A) the prime lending rate publicly announced by the administrative agent and (B) the Federal funds effective rate from time to time plus 0.50%, or (ii) a
Eurocurrency rate determined by reference to the costs of funds for deposits for the interest period relevant to such borrowing adjusted for certain additional costs. The applicable margin percentage is 2.40% in the case of base rate loans, and
3.40% in the case of Eurocurrency rate loans, subject to adjustment based upon Clear Channel Communications leverage ratio. This note is further disclosed in Note 6. As of December 31, 2010, we had no outstanding borrowings under the
$150.0 million sub-limit facility as Clear Channel Communications had already borrowed against the entire capacity.

The Company provides
advertising space on its billboards for radio stations owned by Clear Channel Communications. For the post-merger years ended December 31, 2010 and 2009, the Company recorded $4.2 million and $2.8 million in revenue for these advertisements,
respectively. For the post-merger period from July 31, 2008 through December 31, 2008, the Company recorded $4.0 million in revenue for these advertisements. For the pre-merger period from January 1, 2008 through July 30, 2008,
the Company recorded $4.6 million in revenue for these advertisements.

Under the Corporate Services Agreement between Clear Channel
Communications and the Company, Clear Channel Communications provides management services to the Company, which include, among other things: (i) treasury, payroll and other financial related services; (ii) executive officer services;
(iii) human resources and employee benefits services; (iv) legal and related services; (v) information systems, network and related services; (vi) investment services; (vii) procurement and sourcing support services; and
(viii) other general corporate services. These services are charged to the Company based on actual direct costs incurred or allocated by Clear Channel Communications based on headcount, revenue or other factors on a pro rata basis. For the
post-merger years ended December 31, 2010 and 2009, the Company recorded $38.1 million and $28.5 million as a component of corporate expense for these services, respectively. For the post-merger period from July 31, 2008 through
December 31, 2008, the Company recorded $13.9 million as a component of corporate expense for these services. For the pre-merger period from January 1, 2008 through July 30, 2008, the Company recorded $14.2 million as a component of
corporate expense for these services.

Pursuant to the Tax Matters Agreement between Clear Channel Communications and the Company, the
operations of the Company are included in a consolidated Federal income tax return filed by Clear Channel Communications. The Companys provision for income taxes has been computed on the basis that the Company files separate consolidated
Federal income tax returns with its subsidiaries. Tax payments are made to Clear Channel Communications on the basis of the Companys separate taxable income. Tax benefits recognized on the Companys employee stock option exercises are
retained by the Company.

The Company computes its deferred income tax provision using the liability method in accordance with Statement of
ASC 740-10, as if the Company was a separate taxpayer. Deferred tax assets and liabilities are determined based on differences between financial reporting bases and tax bases of assets and liabilities and are measured using the enacted tax rates
expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled. Deferred tax assets are reduced by valuation allowances if the Company believes it is more likely than not some
portion or all of the asset will not be realized. The Companys provision for income taxes is further disclosed in Note 9.



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Pursuant to the Employee Matters Agreement, the Companys employees participate in Clear Channel
Communications employee benefit plans, including employee medical insurance and a 401(k) retirement benefit plan. These costs are recorded as a component of selling, general and administrative expenses and were approximately $10.3 million and
$9.4 million for the post-merger years ended December 31, 2010 and 2009, respectively. These costs were approximately $6.7 million for the pre-merger period from January 1, 2008 through July 30, 2008 and $4.8 million for the
post-merger period from July 31, 2008 through December 31, 2008.

NOTE 9  INCOME TAXES

The operations of the Company are included in a consolidated Federal income tax return filed by Clear Channel Communications for pre-merger periods and CC
Media Holdings for the post-merger periods. However, for financial reporting purposes, the Companys provision for income taxes has been computed on the basis that the Company files separate consolidated Federal income tax returns with its
subsidiaries.

Significant components of the provision for income tax benefit (expense) are as follows:

(In thousands)

|                             |  |                         |         |   |                                       |   |         |                                      |  |   |         |   |  |   |         |  
|---------------------------- |  | ----------------------- | ------- | - | ------------------------------------- | - | ------- | ------------------------------------ |  | - | ------- | - |  | - | ------- | -
|                             |  | Post-Merger             |         |   | Pre-Merger                            |  
|                             |  | Year Ended December 31, |         |   | Period fromJuly 31throughDecember 31, |   |         | Period fromJanuary 1through
July 30, | 
|                             |  | 2010                    |         |   | 2009                                  |   |         | 2008                                 |  |   | 2008    |  
|Current  Federal            |  | $                       | 6,600   |   |                                       | $ | 38,067  |                                      |  | $ | 19,435  |   |  | $ | (3,872  | )
|Current  foreign            |  |                         | (40,720 | ) |                                       |   | (14,907 | )                                    |  |   | (15,359 | ) |  |   | (24,327 | )
|Current  state              |  |                         | (1,841  | ) |                                       |   | (6,391  | )                                    |  |   | (1,031  | ) |  |   | (1,972  | )
|                             |  |                         |         |   |                                       |   |         |                                      |  |   |         |   |  |   |         |  
|Total current                |  |                         | (35,961 | ) |                                       |   | 16,769  |                                      |  |   | 3,045   |   |  |   | (30,171 | )
|Deferred  Federal           |  |                         | 21,134  |   |                                       |   | 88,972  |                                      |  |   | 229,556 |   |  |   | (30,169 | )
|Deferred  foreign           |  |                         | (3,859  | ) |                                       |   | 30,398  |                                      |  |   | 17,763  |   |  |   | 12,662  |  
|Deferred  state             |  |                         | (2,913  | ) |                                       |   | 12,971  |                                      |  |   | 21,531  |   |  |   | (3,898  | )
|                             |  |                         |         |   |                                       |   |         |                                      |  |   |         |   |  |   |         |  
|Total deferred               |  |                         | 14,362  |   |                                       |   | 132,341 |                                      |  |   | 268,850 |   |  |   | (21,405 | )
|                             |  |                         |         |   |                                       |   |         |                                      |  |   |         |   |  |   |         |  
|Income tax benefit (expense) |  | $                       | (21,599 | ) |                                       | $ | 149,110 |                                      |  | $ | 271,895 |   |  | $ | (51,576 | )
|                             |  |                         |         |   |                                       |   |         |                                      |  |   |         |   |  |   |         |  

For the year ended December 31, 2010 the Company recorded current tax expense of $36.0 million as compared to current
tax benefits of $16.8 million for the 2009 year. The change in current tax was due primarily to the companys ability to carry back certain net operating losses in 2009 to prior years. On November 6, 2009, the Worker, Homeownership, and
Business Assistance Act of 2009 (the Act) was enacted into law. The Act amended Section 172 of the Internal Revenue Code to allow net operating losses realized in a tax year ended after December 31, 2007 and beginning before
January 1, 2010 to be carried back for up to five year (such losses were previously limited to a two-year carryback). This change allowed the Company to recognize current tax benefits of $45.0 million in 2009 related to the projected Federal
income tax refund available upon the carryback of our fiscal 2009 taxable losses to prior periods. The 2009 Federal income tax return and related net operating loss carryback claim was filed in 2010 and resulted in an actual refund of approximately
$51.0 million, which was received in 2010.

Deferred tax benefits decreased $118.0 million for the year ended December 31, 2010 compared
to 2009, primarily due to larger impairment charges recorded in 2009 related to tax deductible intangibles. In addition, in 2010 the Company recorded additional deferred tax expenses related to excess tax over book depreciation resulting from the
accelerated tax depreciation provisions available under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that was signed into law by the President on December 17, 2010.



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



Significant components of the Companys deferred tax liabilities and assets as of December 31,
2010 and 2009 are as follows:



|                                          |  |                        |         |  |      |   |         | 
|----------------------------------------- |  | ---------------------- | ------- |  | ---- | - | ------- | 
|(In thousands)                            |  | Year EndedDecember 31, |        
|                                          |  | 2010                   |         |  | 2009 |  
|Deferred tax liabilities:                 |  |                        |         |  |      |   |         | 
|Intangibles and fixed assets              |  | $                      | 839,409 |  |      | $ | 805,208 | 
|Foreign                                   |  |                        | 52,202  |  |      |   | 59,761  | 
|Investments in nonconsolidated affiliates |  |                        | 222     |  |      |   | 177     | 
|Other investments                         |  |                        | 13,305  |  |      |   | 267     | 
|                                          |  |                        |         |  |      |   |         | 
|Total deferred tax liabilities            |  |                        | 905,138 |  |      |   | 865,413 | 
|                                          |  |                       
|Deferred tax assets:                      |  |                        |         |  |      |   |         | 
|Accrued expenses                          |  |                        | 9,224   |  |      |   | 8,546   | 
|Equity in earnings                        |  |                        | 66      |  |      |   | 195     | 
|Deferred income                           |  |                        | 47      |  |      |   | 55      | 
|Net operating loss carryforwards          |  |                        | 66,270  |  |      |   | 2,423   | 
|Bad debt reserves                         |  |                        | 1,913   |  |      |   | 2,732   | 
|Other                                     |  |                        | 13,480  |  |      |   | 11,545  | 
|                                          |  |                        |         |  |      |   |         | 
|Total deferred tax assets                 |  |                        | 91,000  |  |      |   | 25,496  | 
|Less: Valuation Allowance                 |  |                        | 13,580  |  |      |   |        | 
|                                          |  |                        |         |  |      |   |         | 
|Net deferred tax assets                   |  |                        | 77,420  |  |      |   | 25,496  | 
|                                          |  |                        |         |  |      |   |         | 
|                                          |  |                       
|Net deferred tax liabilities              |  |                        | 827,718 |  |      |   | 839,917 | 
|Less: current portion                     |  |                        | 850     |  |      |   | 1,994   | 
|                                          |  |                        |         |  |      |   |         | 
|Long-term net deferred tax liabilities    |  | $                      | 828,568 |  |      | $ | 841,911 | 
|                                          |  |                        |         |  |      |   |         | 

At December 31, 2010 and 2009, net deferred tax assets include a deferred tax asset of $13.5 million and $11.7 million,
respectively, relating to stock-based compensation expense under ASC 718-10, CompensationStock Compensation. Full realization of this deferred tax asset requires stock options to be exercised at a price equaling or exceeding the sum of
the grant price plus the fair value of the option at the grant date and restricted stock to vest at a price equaling or exceeding the fair market value at the grant date. Accordingly, there can be no assurance that the stock price of the
Companys Common Stock will rise to levels sufficient to realize the entire tax benefit currently reflected in our balance sheet. See Note 10 for additional discussion of ASC 718-10.

The deferred tax liabilities associated with intangibles and fixed assets primarily relates to the difference in book and tax basis of acquired permits and tax deductible goodwill created from the
Companys various stock acquisitions. In accordance with ASC 350-10, IntangiblesGoodwill and Other, the Company does not amortize its book basis in permits. As a result, this deferred tax liability will not reverse over time unless
the Company recognizes future impairment charges related to its permits and tax deductible goodwill or sells its permits. As the Company continues to amortize its tax basis in its permits and tax deductible goodwill, the deferred tax liability will
increase over time.



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



The reconciliation of income tax computed at the U.S. Federal statutory tax rates to income tax benefit
(expense) is:



|                                               |  |                         |         |   |                                       |   |          |                                      |  |   |           |   |  |   |         |  
|---------------------------------------------- |  | ----------------------- | ------- | - | ------------------------------------- | - | -------- | ------------------------------------ |  | - | --------- | - |  | - | ------- | -
|(In thousands)                                 |  | Post-Merger             |         |   | Pre-Merger                            |  
|                                               |  | Year Ended December 31, |         |   | Period fromJuly 31throughDecember 31, |   |          | Period fromJanuary 1through
July 30, | 
|                                               |  | 2010                    |         |   | 2009                                  |   |          | 2008                                 |  |   | 2008      |  
|Income tax expense at statutory rates          |  | $                       | 19,187  |   |                                       | $ | 357,576  |                                      |  | $ | 1,151,107 |   |  | $ | (76,014 | )
|State income taxes, net of Federal tax benefit |  |                         | (4,754  | ) |                                       |   | 6,580    |                                      |  |   | 20,500    |   |  |   | (5,870  | )
|Foreign taxes                                  |  |                         | (31,098 | ) |                                       |   | (92,929  | )                                    |  |   | (95,347   | ) |  |   | 29,667  |  
|Nondeductible items                            |  |                         | (500    | ) |                                       |   | (405     | )                                    |  |   | (258      | ) |  |   | (351    | )
|Tax contingencies                              |  |                         | 1,142   |   |                                       |   | 2,901    |                                      |  |   | 946       |   |  |   | (668    | )
|Impairment charge                              |  |                         |        |   |                                       |   | (113,712 | )                                    |  |   | (803,920  | ) |  |   |        |  
|Other, net                                     |  |                         | (5,576  | ) |                                       |   | (10,901  | )                                    |  |   | (1,133    | ) |  |   | 1,660   |  
|                                               |  |                         |         |   |                                       |   |          |                                      |  |   |           |   |  |   |         |  
|Income tax benefit (expense)                   |  | $                       | (21,599 | ) |                                       | $ | 149,110  |                                      |  | $ | 271,895   |   |  | $ | (51,576 | )
|                                               |  |                         |         |   |                                       |   |          |                                      |  |   |           |   |  |   |         |  

During 2010, the Company recorded tax expense of approximately $21.6 million. Foreign income before income taxes was
approximately $38.5 million for 2010. The 2010 income tax expense and (39.4%) effective tax rate were impacted primarily due to the fact that the Company was unable to benefit tax losses in certain foreign jurisdictions due to the uncertainty
of the ability to utilize those losses in future years. In addition, the Company recorded a valuation allowance of $13.6 million in 2010 against deferred tax assets related to capital allowances in foreign jurisdictions due to the uncertainty of the
ability to realize those assets in future periods.

All tax liabilities owed by the Company are paid by the Company or on behalf of the
Company by Clear Channel Communications through an operating account that represents net amounts due to or from Clear Channel Communications.

The Company continues to record interest and penalties related to unrecognized tax benefits in current income tax expense. The total amount of interest
accrued at December 31, 2010 and 2009, was $11.4 million and $7.3 million, respectively. The total amount of unrecognized tax benefits and accrued interest and penalties at December 31, 2010 and 2009, was $54.2 million and $54.9 million,
respectively, of which $46.6 million and $54.5 million is included in Other long-term liabilities and $2.9 million and $0.4 million is included in Accrued Expenses on the Companys consolidated balance sheet. In
addition, $4.7 million of unrecognized tax benefits are recorded net with the Companys deferred tax assets for its net operating losses as opposed to being recorded in Other long-term liabilities at December 31, 2010. The
total amount of unrecognized tax benefits at December 31, 2010 and 2009 that, if recognized, would impact the effective income tax rate is $54.2 million and $54.9 million, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



|                                                         |  |                         |        |   |      |   |        |  
|-------------------------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------ | -
|(In thousands)                                           |  | Year Ended December 31, |       
|                                                         |  | 2010                    |        |   | 2009 |  
|Balance at beginning of period                           |  | $                       | 47,568 |   |      | $ | 48,406 |  
|Increases due to tax positions taken in the current year |  |                         | 2,540  |   |      |   | 977    |  
|Increases due to tax positions taken in previous years   |  |                         | 6,265  |   |      |   | 10,697 |  
|Decreases due to tax positions taken in previous years   |  |                         | (6,594 | ) |      |   | (4,463 | )
|Decreases due to settlements with taxing authorities     |  |                         | (1,879 | ) |      |   |       |  
|Decreases due to lapse of statute of limitations         |  |                         | (5,093 | ) |      |   | (8,049 | )
|                                                         |  |                         |        |   |      |   |        |  
|Balance at end of period                                 |  | $                       | 42,807 |   |      | $ | 47,568 |  
|                                                         |  |                         |        |   |      |   |        |  



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



Pursuant to the Tax Matters Agreement between Clear Channel Communications and the Company, the
operations of the Company are included in a consolidated Federal income tax return filed by Clear Channel Communications. In addition, the Company and its subsidiaries file income tax returns in various state and foreign
jurisdictions. During 2010, the Company settled the Internal Revenue Service (IRS) exam for the tax years 2005 and 2006. As a result of the settlement the Company will pay approximately $1.0 million, inclusive of interest, to the
IRS and reverse the excess liabilities related to the effectively settled tax years. In addition, the Company effectively settled several state and foreign tax audits during 2010 that resulted in a decrease to the liabilities recorded. During 2009,
the Company increased its liability for certain issues in prior years in foreign jurisdictions as a result of ongoing audits. In addition, certain liabilities were reversed as a result of the statute of limitations lapsing for certain tax years in
foreign jurisdictions. The IRS is currently auditing Clear Channel Communications and the Companys 2007 and pre-merger 2008 tax year and the CC Media Holdings and the Companys post-merger 2008 tax year. Substantially all material
state, local and foreign income tax matters have been concluded for the years through 2003.

NOTE 10  SHAREHOLDERS EQUITY

Stock Options

The
Company has granted options to purchase shares of its Class A common stock to employees and directors of the Company and its affiliates under its equity incentive plan at no less than the fair value of the underlying stock on the date of grant.
These options are granted for a term not exceeding ten years and are forfeited, except in certain circumstances, in the event the employee or director terminates his or her employment or relationship with the Company or one of its affiliates. These
options vest over a period of up to five years. A portion of the options granted vest based solely on continued service over a period of up to four years with the remainder becoming eligible to vest over five years if certain predetermined
performance targets are met. The equity incentive plan contains anti-dilutive provisions that permit an adjustment of the number of shares of the Companys common stock represented by each option for any change in capitalization.

The Company accounts for its share-based payments using the fair value recognition provisions of ASC 718-10. The fair value of the options is estimated
using a Black-Scholes option-pricing model and amortized straight-line to expense over the vesting period. ASC 718-10 requires the cash flows from the tax benefits resulting from tax deductions in excess of the compensation cost recognized for those
options (excess tax benefits) to be classified as financing cash flows. The excess tax benefit that is required to be classified as a financing cash inflow after application of ASC 718-10 is not material.

The fair value of each option awarded is estimated on the date of grant using a Black-Scholes option-pricing model. Expected volatilities are based on
implied volatilities from traded options on the Companys stock, historical volatility on the Companys stock, and other factors. The expected life of options granted represents the period of time that options granted are expected to be
outstanding. The Company uses historical data to estimate option exercise and employee terminations within the valuation model. The Company includes estimated forfeitures in its compensation cost and updates the estimated forfeiture rate through the
final vesting date of awards. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods equal to the expected life of the option. The following assumptions were used to calculate the fair value
of the Companys options on the date of grant:



|                        |  |                         |  |                                       |  |                                      |  |              
|----------------------- |  | ----------------------- |  | ------------------------------------- |  | ------------------------------------ |  | -------------
|                        |  | Post-Merger             |  | Pre-Merger                           
|                        |  | Year Ended December 31, |  | Period fromJuly 31throughDecember 31, |  | Period fromJanuary 1through
July 30,
|                        |  | 2010                    |  | 2009                                  |  | 2008                                 |  | 2008         
|Expected volatility     |  | 58%                     |  | 58%                                   |  | n/a                                  |  | 27%          
|Expected life in years  |  | 5.5  7.0               |  | 5.5  7.0                             |  | n/a                                  |  | 5.5 7.0     
|Risk-free interest rate |  | 1.38%  3.31%           |  | 2.31%  3.25%                         |  | n/a                                  |  | 3.24%  3.38%
|Dividend yield          |  | 0%                      |  | 0%                                    |  | n/a                                  |  | 0%           



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



The following table presents a summary of the Companys stock options outstanding at and stock
option activity during the year ended December 31, 2010 (Price reflects the weighted average exercise price per share):



|                                      |  |         |  |       |       |  |                                          |  |           |                         |  |   |        | 
|------------------------------------- |  | ------- |  | ----- | ----- |  | ---------------------------------------- |  | --------- | ----------------------- |  | - | ------ | 
|(In thousands, except per share data) |  | Options |  | Price |       |  | WeightedAverageRemainingContractual Term |  |           | AggregateIntrinsicValue | 
|Outstanding, January 1, 2010          |  | 9,040   |  | $     | 17.58 |  |                                          |  |           |                         |  |   |        | 
|Granted (a)                           |  | 2,092   |  |       | 9.87  |  |                                          |  |           |                         |  |   |        | 
|Exercised (b)                         |  | (178)   |  |       | 5.26  |  |                                          |  |           |                         |  |   |        | 
|Forfeited                             |  | (798)   |  |       | 13.03 |  |                                          |  |           |                         |  |   |        | 
|Expired                               |  | (1,115) |  |       | 23.72 |  |                                          |  |           |                         |  |   |        | 
|                                      |  |         |  |       |       |  |                                          |  |           |                         |  |   |        | 
|Outstanding, December 31, 2010        |  | 9,041   |  |       | 15.55 |  |                                          |  | 6.2 years |                         |  | $ | 23,799 | 
|                                      |  |         |  |       |       |  |                                          |  |           |                         |  |   |        | 
|Exercisable                           |  | 4,652   |  |       | 19.80 |  |                                          |  | 4.1 years |                         |  |   | 3,195  | 
|Expect to vest                        |  | 3,890   |  |       | 11.20 |  |                                          |  | 8.4 years |                         |  |   | 15,867 | 



|(a) | The weighted average grant date fair value of the Companys options granted during the post-merger years ended December 31, 2010 and 2009 was $5.65 per share
and $3.38 per share, respectively. The weighted average grant date fair value of the Companys options granted during the pre-merger prior from January 1, 2008 through July 30, 2008 was $7.10 per share.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Cash received from option exercises during the post-merger ended December 31, 2010 was $0.9 million. The total intrinsic value of the options exercised during the
post-merger year ended December 31, 2010 was $1.1 million. No options were exercised during the post-merger year ended December 31, 2009. Cash received from option exercises during the pre-merger period from January 1, 2008 through
July 30, 2008, was $4.3 million. The total intrinsic value of the options exercised during the pre-merger period from January 1, 2008 through July 30, 2008 was $0.7 million.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

A summary of the Companys unvested options at and changes during the year ended December 31, 2010, is presented below:



|                                      |  |         |        |   |                                     |   |      | 
|------------------------------------- |  | ------- | ------ | - | ----------------------------------- | - | ---- | 
|(In thousands, except per share data) |  | Options |        |   | WeightedAverageGrant DateFair Value |  
|Unvested, January 1, 2010             |  |         | 5,623  |   |                                     | $ | 5.71 | 
|Granted                               |  |         | 2,092  |   |                                     |   | 5.65 | 
|Vested (a)                            |  |         | (2,528 | ) |                                     |   | 6.28 | 
|Forfeited                             |  |         | (798   | ) |                                     |   | 5.64 | 
|                                      |  |         |        |   |                                     |   |      | 
|Unvested, December 31, 2010           |  |         | 4,389  |   |                                     |   | 5.31 | 
|                                      |  |         |        |   |                                     |   |      | 



|(a) | The total fair value of the options vested during the post-merger years ended December 31, 2010 and 2009 was $15.9 million and $9.9 million, respectively. The
total fair value of the options vested during the pre-merger period from January 1, 2008 through July 30, 2008 was $5.7 million. The total fair value of the options vested during the post-merger period from July 31 through
December 31, 2008 was $2.3 million.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Restricted Stock Awards

The Company has also granted both restricted stock awards and restricted stock units to employees and directors of the Company and its affiliates under
its equity incentive plan. The restricted stock awards represent shares of Class A common stock that hold a legend which restricts their transferability for a term of up to five years. The restricted stock units represent the right to receive
shares upon vesting, which is generally over a period of up to five years. Both restricted stock awards and restricted stock units are forfeited, except in certain circumstances, in the event the employee terminates his or her employment or
relationship with the Company prior to the lapse of the restriction.



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



The following table presents a summary of the Companys restricted stock and restricted stock units
outstanding and activity during the year ended December 31, 2010 (Price reflects the weighted average share price at the date of grant):



|                                      |  |        |      |   |       |   |       | 
|------------------------------------- |  | ------ | ---- | - | ----- | - | ----- | 
|(In thousands, except per share data) |  |        |      |   |       |   |       | 
|                                      |  | Awards |      |   | Price |  
|Outstanding, January 1, 2010          |  |        | 365  |   |       | $ | 18.14 | 
|Granted                               |  |        | 11   |   |       |   | 12.57 | 
|Vested (restriction lapsed)           |  |        | (173 | ) |       |   | 19.89 | 
|Forfeited                             |  |        | (23  | ) |       |   | 22.96 | 
|                                      |  |        |      |   |       |   |       | 
|Outstanding, December 31, 2010        |  |        | 180  |   |       |   | 15.36 | 
|                                      |  |        |      |   |       |   |       | 

Share-Based Compensation Cost

The share based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. The following table
presents the amount of share based compensation recorded for the years ended December 31, 2010 and 2009, during the five months ended December 31, 2008 and the seven months ended July 30, 2008:



|                                             |  |                         |        |  |                                          |   |        |                                       |  |   |       |  |  |   |       | 
|-------------------------------------------- |  | ----------------------- | ------ |  | ---------------------------------------- | - | ------ | ------------------------------------- |  | - | ----- |  |  | - | ----- | 
|(In thousands)                               |  | Post-Merger             |        |  | Pre-Merger                               |  
|                                             |  | Year Ended December 31, |        |  | Period from July 31
through December 31, |   |        | Period fromJanuary 1
through July 30, | 
|                                             |  | 2010                    |        |  | 2009                                     |   |        | 2008                                  |  |   | 2008  | 
|Direct operating expenses                    |  | $                       | 8,756  |  |                                          | $ | 7,612  |                                       |  | $ | 3,038 |  |  | $ | 5,019 | 
|Selling, general and administrative expenses |  |                         | 3,197  |  |                                          |   | 2,777  |                                       |  |   | 771   |  |  |   | 1,804 | 
|Corporate expenses                           |  |                         | 384    |  |                                          |   | 1,715  |                                       |  |   | 372   |  |  |   | 585   | 
|                                             |  |                         |        |  |                                          |   |        |                                       |  |   |       |  |  |   |       | 
|Total share-based payments                   |  | $                       | 12,337 |  |                                          | $ | 12,104 |                                       |  | $ | 4,181 |  |  | $ | 7,408 | 
|                                             |  |                         |        |  |                                          |   |        |                                       |  |   |       |  |  |   |       | 

As of December 31, 2010, there was $17.2 million of unrecognized compensation cost, net of estimated forfeitures,
related to unvested share-based compensation arrangements. The cost is expected to be recognized over a weighted average period of approximately two years. In addition, as of December 31, 2010, there was $0.3 million of unrecognized
compensation cost, net of estimated forfeitures, related to unvested share-based compensation arrangements that will vest based on performance and service conditions. This cost will be recognized when it becomes probable that the performance
condition will be satisfied.



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



Reconciliation of Earnings (Loss) per Share



|                                                              |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|------------------------------------------------------------- |  | ----------------------- | ------- | - | ------------------------------------- | - | -------- | ------------------------------------ |  | - | ---------- | - |  | - | ------- | 
|(In thousands, except per share data)                         |  | Post-Merger             |         |   | Pre-Merger                            |  
|                                                              |  | Year Ended December 31, |         |   | Period fromJuly 31throughDecember 31, |   |          | Period fromJanuary 1through
July 30, | 
|                                                              |  | 2010                    |         |   | 2009                                  |   |          | 2008                                 |  |   | 2008       |  
|Basic and diluted numerator:                                  |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Net income (loss) attributable to the Company  Common Shares |  | $                       | (87,523 | ) |                                       | $ | (868,189 | )                                    |  | $ | (3,018,637 | ) |  | $ | 167,554 | 
|Less: Participating securities dividends                      |  |                         | 5,916   |   |                                       |   | 6,799    |                                      |  |   |           |   |  |   |        | 
|Income attributable to the Company  Unvested Shares          |  |                         |        |   |                                       |   |         |                                      |  |   |           |   |  |   | 214     | 
|                                                              |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Income (loss) attributable to the Company                     |  | $                       | (93,439 | ) |                                       | $ | (874,988 | )                                    |  | $ | (3,018,637 | ) |  | $ | 167,340 | 
|                                                              |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Denominator:                                                  |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Weighted average common shares  basic                        |  |                         | 355,568 |   |                                       |   | 355,377  |                                      |  |   | 355,308    |   |  |   | 355,178 | 
|Effect of dilutive securities:                                |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Stock options and restricted stock awards(1)                  |  |                         |        |   |                                       |   |         |                                      |  |   |           |   |  |   | 563     | 
|                                                              |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Weighted average common shares  diluted                      |  |                         | 355,568 |   |                                       |   | 355,377  |                                      |  |   | 355,308    |   |  |   | 355,741 | 
|                                                              |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Net income (loss) per basic common share                      |  | $                       | (0.26   | ) |                                       | $ | (2.46    | )                                    |  | $ | (8.50      | ) |  | $ | 0.47    | 
|                                                              |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 
|Net income (loss) per diluted common share                    |  | $                       | (0.26   | ) |                                       | $ | (2.46    | )                                    |  | $ | (8.50      | ) |  | $ | 0.47    | 
|                                                              |  |                         |         |   |                                       |   |          |                                      |  |   |            |   |  |   |         | 



|(1) | 5.2 million, 6.7 million, 7.7 million and 6.3 million stock options were outstanding at December 31, 2010, 2009 and 2008 (post-merger) and
July 30, 2008 (pre-merger), respectively, that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive as the respective options strike price was greater than the current market
price of the shares.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NOTE 11  EMPLOYEE STOCK AND SAVINGS PLANS

The Companys U.S. employees were eligible to participate in various 401(k) savings and other plans provided by Clear Channel Communications for the
purpose of providing retirement benefits for substantially all employees. Under these plans, a Company employee can make pre-tax contributions and the Company will match 50% of the employees first 5% of pay contributed to the plan. Employees
vest in these Company matching contributions based upon their years of service to the Company. Contributions to these plans of $1.9 million and $0.8 million for the post-merger years ended December 31, 2010 and 2009, respectively, were recorded
as a component of operating expenses. Contributions of these plans of $1.4 million for the pre-merger period from January 1, 2008 through July 30, 2008 and $0.9 million for the post-merger period from July 31, 2008 through
December 31, 2008 were recorded as a component of operating expenses. As of April 30, 2009, the Company suspended its matching contribution. Effective April 1, 2010, the Company reinstated the matching contribution retroactive to
January 1, 2010.

In addition, employees in the Companys International segment participate in retirement plans administered by the
Company which are not part of the 401(k) savings and other plans sponsored by Clear Channel Communications. Contributions to these plans of $15.8 million and $17.8 million for the years ended December 31, 2010 and 2009, respectively, were
recorded as a component of operating expenses. Contributions to these plans of $7.7 million for the pre-merger period from January 1, 2008 through July 30, 2008 and $5.5 million for the post-merger period from July 31, 2008 through
December 31, 2008 were recorded as a component of operating expenses.



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Certain highly compensated executives of the Company are eligible to participate in a non-qualified
deferred compensation plan sponsored by Clear Channel Communications, under which such executives are able to make an annual election to defer up to 50% of their annual salary and up to 80% of their bonus before taxes. Matching credits on amounts
deferred may be made in the sole discretion of Clear Channel Communications and Clear Channel Communications retains ownership of all assets until distributed. Participants in the plan have the opportunity to allocate their deferrals and any
matching credits among different investment options, the performance of which is used to determine the amounts paid to participants under the plan. There is no liability recorded by the Company under this deferred compensation plan as the liability
of this plan is that of Clear Channel Communications.

NOTE 12  OTHER INFORMATION



|                                         |  |                         |        |   |                                        |   |        |                                       |  |   |        |   |  |   |        |  
|---------------------------------------- |  | ----------------------- | ------ | - | -------------------------------------- | - | ------ | ------------------------------------- |  | - | ------ | - |  | - | ------ | -
|(In thousands)                           |  | Post-Merger             |        |   | Pre-Merger                             |  
|                                         |  | Year Ended December 31, |        |   | Period fromJuly 31 throughDecember 31, |   |        | Period fromJanuary 1 through
July 30, | 
|                                         |  | 2010                    |        |   | 2009                                   |   |        | 2008                                  |  |   | 2008   |  
|Other income (expense)  net includes: |  |                         |        |   |                                        |   |        |                                       |  |   |        |   |  |   |        |  
|Foreign exchange gain (loss)             |  | $                       | (6,014 | ) |                                        | $ | (4,207 | )                                     |  | $ | 10,440 |   |  | $ | 9,404  |  
|Dividends on marketable securities       |  |                         |       |   |                                        |   |       |                                       |  |   | 2,533  |   |  |   | 5,468  |  
|Other                                    |  |                         | 679    |   |                                        |   | (5,161 | )                                     |  |   | (859   | ) |  |   | (1,507 | )
|                                         |  |                         |        |   |                                        |   |        |                                       |  |   |        |   |  |   |        |  
|Total other income (expense)  net       |  | $                       | (5,335 | ) |                                        | $ | (9,368 | )                                     |  | $ | 12,114 |   |  | $ | 13,365 |  
|                                         |  |                         |        |   |                                        |   |        |                                       |  |   |        |   |  |   |        |  



|                                |  |                    |        |  |      |   |         | 
|------------------------------- |  | ------------------ | ------ |  | ---- | - | ------- | 
|(In thousands)                  |  | As of December 31, |       
|                                |  | 2010               |        |  | 2009 |  
|Other current assets include: |  |                    |        |  |      |   |         | 
|Income taxes receivable         |  | $                  |       |  |      | $ | 65,642  | 
|Inventory                       |  |                    | 20,698 |  |      |   | 24,268  | 
|Deposits                        |  |                    | 30,533 |  |      |   | 18,707  | 
|Deferred tax assets             |  |                    | 850    |  |      |   | 1,994   | 
|Other                           |  |                    | 38,888 |  |      |   | 72,388  | 
|                                |  |                    |        |  |      |   |         | 
|Total other current assets      |  | $                  | 90,969 |  |      | $ | 182,999 | 
|                                |  |                    |        |  |      |   |         | 



|                                                          |  |                    |          |   |      |   |          |  
|--------------------------------------------------------- |  | ------------------ | -------- | - | ---- | - | -------- | -
|(In thousands)                                            |  | As of December 31, |         
|                                                          |  | 2010               |          |   | 2009 |  
|Accumulated other comprehensive income (loss) includes: |  |                    |          |   |      |   |          |  
|Cumulative currency translation adjustment                |  | $                  | (207,481 | ) |      | $ | (219,538 | )
|Cumulative unrealized gain on investments                 |  |                    | 42       |   |      |   | 1,361    |  
|                                                          |  |                    |          |   |      |   |          |  
|Total accumulated other comprehensive income (loss)       |  | $                  | (207,439 | ) |      | $ | (218,177 | )
|                                                          |  |                    |          |   |      |   |          |  



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NOTE 13  SEGMENT DATA

The Company has two reportable operating segments, which it believes best reflects how the Company is currently managed  Americas and International. The Americas segment primarily includes
operations in the United States, Canada and Latin America, and the International segment primarily includes operations in Europe, Asia and Australia. Corporate includes infrastructure and support including, information technology, human resources,
legal, finance and administrative functions of each of the Companys operating segments, as well as overall executive, administrative and support functions. Share-based payments are recorded by each segment in direct operating and selling,
general and administrative expenses.

The following table presents the Companys operating segment results for the years ended
December 31, 2010 and 2009; the post-merger period from July 31, 2008 through December 31, 2008 and the pre-merger period from January 1, 2008 through July 30, 2008:



|                                             |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |           |  
|-------------------------------------------- |  | -------- | --------- |  | ------------- | - | --------- | ----------------------------------- |  | - | ------------ | - |  | - | --------- | -
|(In thousands)                               |  | Americas |           |  | International |   |           | Corporate andother reconcilingitems |  |   | Consolidated |  
|                                             |  |          |           | 
|Post-Merger Year Ended December 31, 2010     |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |           |  
|Revenue                                      |  | $        | 1,290,014 |  |               | $ | 1,507,980 |                                     |  | $ |             |   |  | $ | 2,797,994 |  
|Direct operating expenses                    |  |          | 588,592   |  |               |   | 971,380   |                                     |  |   |             |   |  |   | 1,559,972 |  
|Selling, general and administrative expenses |  |          | 218,776   |  |               |   | 275,880   |                                     |  |   |             |   |  |   | 494,656   |  
|Depreciation and amortization                |  |          | 209,127   |  |               |   | 204,461   |                                     |  |   |             |   |  |   | 413,588   |  
|Impairment charges                           |  |          |          |  |               |   |          |                                     |  |   | 11,493       |   |  |   | 11,493    |  
|Corporate expenses                           |  |          |          |  |               |   |          |                                     |  |   | 107,596      |   |  |   | 107,596   |  
|Other operating expense  net                |  |          |          |  |               |   |          |                                     |  |   | (23,753      | ) |  |   | (23,753   | )
|                                             |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |           |  
|Operating income (loss)                      |  | $        | 273,519   |  |               | $ | 56,259    |                                     |  | $ | (142,842     | ) |  | $ | 186,936   |  
|                                             |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |           |  
|                                             |  |          |           | 
|Identifiable assets                          |  | $        | 4,597,615 |  |               | $ | 2,059,892 |                                     |  | $ | 438,543      |   |  | $ | 7,096,050 |  
|Capital expenditures                         |  | $        | 96,720    |  |               | $ | 98,553    |                                     |  | $ |             |   |  | $ | 195,273   |  
|Share-based compensation expense             |  | $        | 9,207     |  |               | $ | 2,746     |                                     |  | $ | 384          |   |  | $ | 12,337    |  
|                                             |  |          |          
|Post-Merger Year Ended December 31, 2009     |  |          |           |  |               |   |           |                                     |  |   |              |   | 
|Revenue                                      |  | $        | 1,238,171 |  |               | $ | 1,459,853 |                                     |  | $ |             |   |  | $ | 2,698,024 |  
|Direct operating expenses                    |  |          | 608,078   |  |               |   | 1,017,005 |                                     |  |   |             |   |  |   | 1,625,083 |  
|Selling, general and administrative expenses |  |          | 202,196   |  |               |   | 282,208   |                                     |  |   |             |   |  |   | 484,404   |  
|Depreciation and amortization                |  |          | 210,280   |  |               |   | 229,367   |                                     |  |   |             |   |  |   | 439,647   |  
|Impairment charges                           |  |          |          |  |               |   |          |                                     |  |   | 890,737      |   |  |   | 890,737   |  
|Corporate expenses                           |  |          |          |  |               |   |          |                                     |  |   | 65,247       |   |  |   | 65,247    |  
|Other operating expense  net                |  |          |          |  |               |   |          |                                     |  |   | (8,231       | ) |  |   | (8,231    | )
|                                             |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |           |  
|Operating income (loss)                      |  | $        | 217,617   |  |               | $ | (68,727   | )                                   |  | $ | (964,215     | ) |  | $ | (815,325  | )
|                                             |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |           |  
|                                             |  |          |           | 
|Identifiable assets                          |  | $        | 4,722,975 |  |               | $ | 2,216,691 |                                     |  | $ | 252,756      |   |  | $ | 7,192,422 |  
|Capital expenditures                         |  | $        | 84,440    |  |               | $ | 91,513    |                                     |  | $ |             |   |  | $ | 175,953   |  
|Share-based compensation expense             |  | $        | 7,977     |  |               | $ | 2,412     |                                     |  | $ | 1,715        |   |  | $ | 12,104    |  



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|                                                                |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |            |  
|--------------------------------------------------------------- |  | -------- | --------- |  | ------------- | - | --------- | ----------------------------------- |  | - | ------------ | - |  | - | ---------- | -
|(In thousands)                                                  |  | Americas |           |  | International |   |           | Corporate andother reconcilingitems |  |   | Consolidated |  
|                                                                |  |         
|Post-Merger Period from July 31, 2008 through December 31, 2008 |  |          |           |  |               |   |           |                                     | 
|Revenue                                                         |  | $        | 587,427   |  |               | $ | 739,797   |                                     |  | $ |             |   |  | $ | 1,327,224  |  
|Direct operating expenses                                       |  |          | 276,602   |  |               |   | 486,102   |                                     |  |   |             |   |  |   | 762,704    |  
|Selling, general and administrative expenses                    |  |          | 114,260   |  |               |   | 147,264   |                                     |  |   |             |   |  |   | 261,524    |  
|Depreciation and amortization                                   |  |          | 90,624    |  |               |   | 134,089   |                                     |  |   |             |   |  |   | 224,713    |  
|Impairment charges                                              |  |          |          |  |               |   |          |                                     |  |   | 3,217,649    |   |  |   | 3,217,649  |  
|Corporate expenses                                              |  |          |          |  |               |   |          |                                     |  |   | 31,681       |   |  |   | 31,681     |  
|Other operating income  net                                    |  |          |          |  |               |   |          |                                     |  |   | 4,870        |   |  |   | 4,870      |  
|                                                                |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |            |  
|Operating income (loss)                                         |  | $        | 105,941   |  |               | $ | (27,658   | )                                   |  | $ | (3,244,460   | ) |  | $ | (3,166,177 | )
|                                                                |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |            |  
|                                                                |  |          |           | 
|Identifiable assets                                             |  | $        | 5,187,838 |  |               | $ | 2,409,652 |                                     |  | $ | 453,271      |   |  | $ | 8,050,761  |  
|Capital expenditures                                            |  | $        | 93,146    |  |               | $ | 66,067    |                                     |  | $ |             |   |  | $ | 159,213    |  
|Share-based compensation expense                                |  | $        | 3,012     |  |               | $ | 797       |                                     |  | $ | 372          |   |  | $ | 4,181      |  
|                                                                |  |         
|Pre-Merger Period from January 1, 2008 through July 30, 2008    |  |          |           |  |               |   |           |                                     | 
|Revenue                                                         |  | $        | 842,831   |  |               | $ | 1,119,232 |                                     |  | $ |             |   |  | $ | 1,962,063  |  
|Direct operating expenses                                       |  |          | 370,924   |  |               |   | 748,508   |                                     |  |   |             |   |  |   | 1,119,432  |  
|Selling, general and administrative expenses                    |  |          | 138,629   |  |               |   | 206,217   |                                     |  |   |             |   |  |   | 344,846    |  
|Depreciation and amortization                                   |  |          | 117,009   |  |               |   | 130,628   |                                     |  |   |             |   |  |   | 247,637    |  
|Corporate expenses                                              |  |          |          |  |               |   |          |                                     |  |   | 39,364       |   |  |   | 39,364     |  
|Other operating income  net                                    |  |          |          |  |               |   |          |                                     |  |   | 10,978       |   |  |   | 10,978     |  
|                                                                |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |            |  
|Operating income (loss)                                         |  | $        | 216,269   |  |               | $ | 33,879    |                                     |  | $ | (28,386      | ) |  | $ | 221,762    |  
|                                                                |  |          |           |  |               |   |           |                                     |  |   |              |   |  |   |            |  
|                                                                |  |          |           | 
|Capital expenditures                                            |  | $        | 82,672    |  |               | $ | 116,450   |                                     |  | $ |             |   |  | $ | 199,122    |  
|Share-based compensation expense                                |  | $        | 5,453     |  |               | $ | 1,370     |                                     |  | $ | 585          |   |  | $ | 7,408      |  

Revenue of $1.6 billion, $1.6
billion, $790.6 million and $1.2 billion derived from the Companys foreign operations are included in the data above for the years ended December 31, 2010 and 2009, the post-merger period from July 31, 2008 through December 31,
2008 and the pre-merger period January 1, 2008 through July 30, 2008, respectively. Revenue of $1.2 billion, $1.1 billion, $536.6 million and $776.3 million derived from the Companys U.S. operations are included in the data above for
the years ended December 31, 2010 and 2009, the post-merger period from July 31, 2008 through December 31, 2008 and the pre-merger period January 1, 2008 through July 30, 2008, respectively.

Identifiable long-lived assets of $801.1 million, $862.1 million and $908.0 million derived from the Companys foreign operations are included in
the data above for the years ended December 31, 2010, 2009 and 2008, respectively. Identifiable long-lived assets of $1.5 billion, $1.6 billion and $1.7 billion derived from the Companys U.S. operations are included in the data above for
the years ended December 31, 2010, 2009 and 2008, respectively.



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NOTE 14  QUARTERLY RESULTS OF OPERATIONS (Unaudited)

(In thousands, except per share data)

|                                                         |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|-------------------------------------------------------- |  | --------- | ------- | - | -------- | - | ------- | ------------- |  | - | ------------ | - |  | ---- | -------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | - |  | - | -------- | -
|                                                         |  | March 31, |         |   | June 30, |   |         | September 30, |  |   | December 31, |  
|                                                         |  | 2010      |         |   | 2009     |   |         | 2010          |  |   | 2009         |   |  | 2010 |          |   | 2009 |   |         | 2010 |  |   | 2009    |  
|Revenue                                                  |  | $         | 608,768 |   |          | $ | 582,216 |               |  | $ | 701,407      |   |  | $    | 692,117  |   |      | $ | 695,086 |      |  | $ | 660,622 |   |  | $ | 792,733 |   |  | $ | 763,069  |  
|Operating expenses:                                      |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|Direct operating expenses                                |  |           | 378,886 |   |          |   | 379,608 |               |  |   | 385,884      |   |  |      | 392,309  |   |      |   | 380,619 |      |  |   | 398,766 |   |  |   | 414,583 |   |  |   | 454,400  |  
|Selling, general and administrative expenses             |  |           | 111,357 |   |          |   | 117,764 |               |  |   | 130,692      |   |  |      | 121,342  |   |      |   | 115,224 |      |  |   | 108,824 |   |  |   | 137,383 |   |  |   | 136,474  |  
|Corporate expenses                                       |  |           | 20,772  |   |          |   | 14,246  |               |  |   | 23,757       |   |  |      | 15,653   |   |      |   | 26,197  |      |  |   | 15,547  |   |  |   | 36,870  |   |  |   | 19,801   |  
|Depreciation and amortization                            |  |           | 101,709 |   |          |   | 101,908 |               |  |   | 105,299      |   |  |      | 114,808  |   |      |   | 103,833 |      |  |   | 111,053 |   |  |   | 102,747 |   |  |   | 111,878  |  
|Impairment charges                                       |  |           |        |   |          |   |        |               |  |   |             |   |  |      | 812,390  |   |      |   |        |      |  |   |        |   |  |   | 11,493  |   |  |   | 78,347   |  
|Other operating income (expense)  net                   |  |           | 1,018   |   |          |   | 4,612   |               |  |   | 1,720        |   |  |      | 4,353    |   |      |   | (27,672 | )    |  |   | 1,160   |   |  |   | 1,181   |   |  |   | (18,356  | )
|                                                         |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|Operating income (loss)                                  |  |           | (2,938  | ) |          |   | (26,698 | )             |  |   | 57,495       |   |  |      | (760,032 | ) |      |   | 41,541  |      |  |   | 27,592  |   |  |   | 90,838  |   |  |   | (56,187  | )
|Interest expense                                         |  |           | 58,318  |   |          |   | 38,887  |               |  |   | 60,395       |   |  |      | 38,197   |   |      |   | 60,276  |      |  |   | 37,908  |   |  |   | 60,464  |   |  |   | 39,927   |  
|Interest income on Due from Clear Channel Communications |  |           | 3,413   |   |          |   | 114     |               |  |   | 3,806        |   |  |      | 111      |   |      |   | 4,800   |      |  |   | 133     |   |  |   | 7,441   |   |  |   | 366      |  
|Loss on marketable securities                            |  |           |        |   |          |   |        |               |  |   |             |   |  |      |         |   |      |   |        |      |  |   | 11,315  |   |  |   | 6,490   |   |  |   |         |  
|Equity in earnings (loss) of nonconsolidated affiliates  |  |           | (803    | ) |          |   | (2,293  | )             |  |   | 4            |   |  |      | (21,755  | ) |      |   | (663    | )    |  |   | (2,046  | ) |  |   | (8,474  | ) |  |   | (5,348   | )
|Other income (expense)  net                             |  |           | (837    | ) |          |   | (3,168  | )             |  |   | (4,155       | ) |  |      | (2,612   | ) |      |   | 1,545   |      |  |   | 492     |   |  |   | (1,888  | ) |  |   | (4,080   | )
|                                                         |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|Income (loss) before income taxes                        |  |           | (59,483 | ) |          |   | (70,932 | )             |  |   | (3,245       | ) |  |      | (822,485 | ) |      |   | (13,053 | )    |  |   | (23,052 | ) |  |   | 20,963  |   |  |   | (105,176 | )
|Income tax benefit (expense)                             |  |           | 10,704  |   |          |   | (20,423 | )             |  |   | 741          |   |  |      | 133,124  |   |      |   | (18,829 | )    |  |   | (10,999 | ) |  |   | (14,215 | ) |  |   | 47,408   |  
|                                                         |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|Consolidated net income (loss)                           |  |           | (48,779 | ) |          |   | (91,355 | )             |  |   | (2,504       | ) |  |      | (689,361 | ) |      |   | (31,882 | )    |  |   | (34,051 | ) |  |   | 6,748   |   |  |   | (57,768  | )
|Less amount attributable to noncontrolling interest      |  |           | (997    | ) |          |   | (3,475  | )             |  |   | 6,623        |   |  |      | (263     | ) |      |   | 3,012   |      |  |   | 325     |   |  |   | 2,468   |   |  |   | (933     | )
|                                                         |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|Net income (loss) attributable to the Company            |  | $         | (47,782 | ) |          | $ | (87,880 | )             |  | $ | (9,127       | ) |  | $    | (689,098 | ) |      | $ | (34,894 | )    |  | $ | (34,376 | ) |  | $ | 4,280   |   |  | $ | (56,835  | )
|                                                         |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|                                                         |  |           |         |   |          |   |         |              
|Net income (loss) per common share:                      |  |           |         |   |          |   |         |               |  |   |              |   |  |      |          |   |      |   |         |      |  |   |         |   |  |   |         |   |  |   |          |  
|Basic                                                    |  | $         | (0.14   | ) |          | $ | (0.25   | )             |  | $ | (0.03        | ) |  | $    | (1.94    | ) |      | $ | (0.10   | )    |  | $ | (0.10   | ) |  | $ | 0.00    |   |  | $ | (0.18    | )
|Diluted                                                  |  | $         | (0.14   | ) |          | $ | (0.25   | )             |  | $ | (0.03        | ) |  | $    | (1.94    | ) |      | $ | (0.10   | )    |  | $ | (0.10   | ) |  | $ | 0.00    |   |  | $ | (0.18    | )



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CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



NOTE 15  GUARANTOR SUBSIDIARIES

The Company and certain of Clear Channels direct and indirect wholly-owned domestic subsidiaries (the Guarantor Subsidiaries) fully and unconditionally guaranteed on a joint and several
basis certain of Clear Channels outstanding indebtedness. The following consolidating schedules present financial information on a combined basis in conformity with the SECs Regulation S-X Rule 3-10(d):



|                                           |               |                   |           |                  |  |   |                       |  |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|------------------------------------------ | ------------- | ----------------- | --------- | ---------------- |  | - | --------------------- |  |  | ------------------------- | --------- |  | ------------ | - | --------- | ------------ |  | - | ---------- | - |  | - | --------- | 
|Post-merger
(In thousands)                 |               | December 31, 2010 |          
|                                           | ParentCompany |                   |           | SubsidiaryIssuer |  |   | GuarantorSubsidiaries |  |  | Non-GuarantorSubsidiaries |           |  | Eliminations |   |           | Consolidated | 
|Cash and cash equivalents                  |               | $                 |          |                  |  | $ |                      |  |  | $                         | 420,229   |  |              | $ | 203,789   |              |  | $ |           |   |  | $ | 624,018   | 
|Accounts receivable, net                   |               |                   |          |                  |  |   |                      |  |  |                           | 270,037   |  |              |   | 484,563   |              |  |   |           |   |  |   | 754,600   | 
|Intercompany receivables                   |               |                   |          |                  |  |   | 116,624               |  |  |                           | 841,867   |  |              |   | 5,781     |              |  |   | (964,272   | ) |  |   |          | 
|Prepaid expenses                           |               |                   | 1,537     |                  |  |   |                      |  |  |                           | 43,116    |  |              |   | 55,738    |              |  |   |           |   |  |   | 100,391   | 
|Other current assets                       |               |                   |          |                  |  |   |                      |  |  |                           | 10,205    |  |              |   | 80,764    |              |  |   |           |   |  |   | 90,969    | 
|                                           |               |                   |           |                  |  |   |                       |  |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Current Assets                       |               |                   | 1,537     |                  |  |   | 116,624               |  |  |                           | 1,585,454 |  |              |   | 830,635   |              |  |   | (964,272   | ) |  |   | 1,569,978 | 
|Property, plant and equipment, net         |               |                   |          |                  |  |   |                      |  |  |                           | 1,493,640 |  |              |   | 804,084   |              |  |   |           |   |  |   | 2,297,724 | 
|Definite-lived intangibles, net            |               |                   |          |                  |  |   |                      |  |  |                           | 400,012   |  |              |   | 305,206   |              |  |   |           |   |  |   | 705,218   | 
|Indefinite-lived intangibles               |               |                   |          |                  |  |   |                      |  |  |                           | 1,098,958 |  |              |   | 15,455    |              |  |   |           |   |  |   | 1,114,413 | 
|Goodwill                                   |               |                   |          |                  |  |   |                      |  |  |                           | 571,932   |  |              |   | 290,310   |              |  |   |           |   |  |   | 862,242   | 
|Intercompany notes receivable              |               |                   | 182,026   |                  |  |   | 2,590,955             |  |  |                           | 9,243     |  |              |   | 17,832    |              |  |   | (2,800,056 | ) |  |   |          | 
|Due from Clear Channel Communications      |               |                   | 383,778   |                  |  |   |                      |  |  |                           |          |  |              |   |          |              |  |   |           |   |  |   | 383,778   | 
|Other assets                               |               |                   | 2,773,305 |                  |  |   | 1,034,182             |  |  |                           | 1,492,337 |  |              |   | 62,319    |              |  |   | (5,199,446 | ) |  |   | 162,697   | 
|                                           |               |                   |           |                  |  |   |                       |  |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Assets                               |               | $                 | 3,340,646 |                  |  | $ | 3,741,761             |  |  | $                         | 6,651,576 |  |              | $ | 2,325,841 |              |  | $ | (8,963,774 | ) |  | $ | 7,096,050 | 
|                                           |               |                   |           |                  |  |   |                       |  |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|                                           |               |                   |           |                  |  |  
|Accounts payable                           |               | $                 |          |                  |  | $ |                      |  |  | $                         | 6,175     |  |              | $ | 94,365    |              |  | $ |           |   |  | $ | 100,540   | 
|Accrued expenses                           |               |                   | (26       | )                |  |   | 165                   |  |  |                           | 135,570   |  |              |   | 406,821   |              |  |   |           |   |  |   | 542,530   | 
|Intercompany notes payable                 |               |                   | 834,695   |                  |  |   |                      |  |  |                           | 129,577   |  |              |   |          |              |  |   | (964,272   | ) |  |   |          | 
|Deferred income                            |               |                   |          |                  |  |   |                      |  |  |                           | 38,264    |  |              |   | 62,411    |              |  |   |           |   |  |   | 100,675   | 
|Current portion of long-term debt          |               |                   |          |                  |  |   |                      |  |  |                           |          |  |              |   | 41,676    |              |  |   |           |   |  |   | 41,676    | 
|                                           |               |                   |           |                  |  |   |                       |  |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Current Liabilities                  |               |                   | 834,669   |                  |  |   | 165                   |  |  |                           | 309,586   |  |              |   | 605,273   |              |  |   | (964,272   | ) |  |   | 785,421   | 
|Long-term debt                             |               |                   |          |                  |  |   | 2,500,000             |  |  |                           |          |  |              |   | 22,133    |              |  |   |           |   |  |   | 2,522,133 | 
|Intercompany notes payable                 |               |                   | 7,491     |                  |  |   |                      |  |  |                           | 2,701,610 |  |              |   | 90,955    |              |  |   | (2,800,056 | ) |  |   |          | 
|Other long-term liabilities                |               |                   |          |                  |  |   | 1,108                 |  |  |                           | 105,482   |  |              |   | 145,283   |              |  |   |           |   |  |   | 251,873   | 
|Deferred tax liability                     |               |                   | 225       |                  |  |   |                      |  |  |                           | 761,593   |  |              |   | 66,750    |              |  |   |           |   |  |   | 828,568   | 
|Total shareholders equity                 |               |                   | 2,498,261 |                  |  |   | 1,240,488             |  |  |                           | 2,773,305 |  |              |   | 1,395,447 |              |  |   | (5,199,446 | ) |  |   | 2,708,055 | 
|                                           |               |                   |           |                  |  |   |                       |  |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Liabilities and Shareholders Equity |               | $                 | 3,340,646 |                  |  | $ | 3,741,761             |  |  | $                         | 6,651,576 |  |              | $ | 2,325,841 |              |  | $ | (8,963,774 | ) |  | $ | 7,096,050 | 
|                                           |               |                   |           |                  |  |   |                       |  |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 



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CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                           |               |                   |           |                  |  |   |                       |   |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|------------------------------------------ | ------------- | ----------------- | --------- | ---------------- |  | - | --------------------- | - |  | ------------------------- | --------- |  | ------------ | - | --------- | ------------ |  | - | ---------- | - |  | - | --------- | 
|Post-merger
(In thousands)                 |               | December 31, 2009 |          
|                                           | ParentCompany |                   |           | SubsidiaryIssuer |  |   | GuarantorSubsidiaries |   |  | Non-GuarantorSubsidiaries |           |  | Eliminations |   |           | Consolidated | 
|Cash and cash equivalents                  |               | $                 |          |                  |  | $ |                      |   |  | $                         | 431,105   |  |              | $ | 178,331   |              |  | $ |           |   |  | $ | 609,436   | 
|Accounts receivable, net                   |               |                   |          |                  |  |   |                      |   |  |                           | 249,325   |  |              |   | 480,981   |              |  |   |           |   |  |   | 730,306   | 
|Intercompany receivables                   |               |                   |          |                  |  |   | 4,689                 |   |  |                           | 582,554   |  |              |   | 20,606    |              |  |   | (607,849   | ) |  |   |          | 
|Prepaid expenses                           |               |                   | 1,799     |                  |  |   |                      |   |  |                           | 43,521    |  |              |   | 72,484    |              |  |   |           |   |  |   | 117,804   | 
|Other current assets                       |               |                   | 997       |                  |  |   | (1,935                | ) |  |                           | 79,115    |  |              |   | 104,822   |              |  |   |           |   |  |   | 182,999   | 
|                                           |               |                   |           |                  |  |   |                       |   |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Current Assets                       |               |                   | 2,796     |                  |  |   | 2,754                 |   |  |                           | 1,385,620 |  |              |   | 857,224   |              |  |   | (607,849   | ) |  |   | 1,640,545 | 
|Property, plant and equipment, net         |               |                   |          |                  |  |   |                      |   |  |                           | 1,562,256 |  |              |   | 878,382   |              |  |   |           |   |  |   | 2,440,638 | 
|Definite-lived intangibles, net            |               |                   |          |                  |  |   |                      |   |  |                           | 423,935   |  |              |   | 375,209   |              |  |   |           |   |  |   | 799,144   | 
|Indefinite-lived intangibles               |               |                   |          |                  |  |   |                      |   |  |                           | 1,117,568 |  |              |   | 14,650    |              |  |   |           |   |  |   | 1,132,218 | 
|Goodwill                                   |               |                   |          |                  |  |   |                      |   |  |                           | 571,932   |  |              |   | 289,660   |              |  |   |           |   |  |   | 861,592   | 
|Intercompany notes receivable              |               |                   | 182,026   |                  |  |   | 2,700,000             |   |  |                           | 9,243     |  |              |   | 18,235    |              |  |   | (2,909,504 | ) |  |   |          | 
|Due from Clear Channel Communications      |               |                   | 123,308   |                  |  |   |                      |   |  |                           |          |  |              |   |          |              |  |   |           |   |  |   | 123,308   | 
|Other assets                               |               |                   | 2,849,918 |                  |  |   | 1,075,719             |   |  |                           | 1,517,111 |  |              |   | 80,019    |              |  |   | (5,327,790 | ) |  |   | 194,977   | 
|                                           |               |                   |           |                  |  |   |                       |   |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Assets                               |               | $                 | 3,158,048 |                  |  | $ | 3,778,473             |   |  | $                         | 6,587,665 |  |              | $ | 2,513,379 |              |  | $ | (8,845,143 | ) |  | $ | 7,192,422 | 
|                                           |               |                   |           |                  |  |   |                       |   |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|                                           |               |                   |           |                  |  |  
|Accounts payable                           |               | $                 |          |                  |  | $ |                      |   |  | $                         | 6,096     |  |              | $ | 103,226   |              |  | $ |           |   |  | $ | 109,322   | 
|Accrued expenses                           |               |                   |          |                  |  |   |                      |   |  |                           | 106,396   |  |              |   | 398,724   |              |  |   |            |   |  |   | 505,120   | 
|Intercompany notes payable                 |               |                   | 582,554   |                  |  |   |                      |   |  |                           | 25,295    |  |              |   |          |              |  |   | (607,849   | ) |  |   |          | 
|Deferred income                            |               |                   |          |                  |  |   |                      |   |  |                           | 38,579    |  |              |   | 70,999    |              |  |   |           |   |  |   | 109,578   | 
|Current portion of long-term debt          |               |                   |          |                  |  |   |                      |   |  |                           | 77        |  |              |   | 46,996    |              |  |   |           |   |  |   | 47,073    | 
|                                           |               |                   |           |                  |  |   |                       |   |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Current Liabilities                  |               |                   | 582,554   |                  |  |   |                      |   |  |                           | 176,443   |  |              |   | 619,945   |              |  |   | (607,849   | ) |  |   | 771,093   | 
|Long-term debt                             |               |                   |          |                  |  |   | 2,500,000             |   |  |                           |          |  |              |   | 61,805    |              |  |   |           |   |  |   | 2,561,805 | 
|Intercompany notes payable                 |               |                   | 7,622     |                  |  |   |                      |   |  |                           | 2,692,639 |  |              |   | 209,243   |              |  |   | (2,909,504 | ) |  |   |          | 
|Other long-term liabilities                |               |                   |          |                  |  |   | 1,225                 |   |  |                           | 87,819    |  |              |   | 167,192   |              |  |   |           |   |  |   | 256,236   | 
|Deferred tax liability                     |               |                   | 225       |                  |  |   |                      |   |  |                           | 780,846   |  |              |   | 60,840    |              |  |   |           |   |  |   | 841,911   | 
|Total shareholders equity                 |               |                   | 2,567,647 |                  |  |   | 1,277,248             |   |  |                           | 2,849,918 |  |              |   | 1,394,354 |              |  |   | (5,327,790 | ) |  |   | 2,761,377 | 
|                                           |               |                   |           |                  |  |   |                       |   |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 
|Total Liabilities and Shareholders Equity |               | $                 | 3,158,048 |                  |  | $ | 3,778,473             |   |  | $                         | 6,587,665 |  |              | $ | 2,513,379 |              |  | $ | (8,845,143 | ) |  | $ | 7,192,422 | 
|                                           |               |                   |           |                  |  |   |                       |   |  |                           |           |  |              |   |           |              |  |   |            |   |  |   |           | 



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CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|---------------------------------------------------------------------------------------------------- | ------------- | ---------------------------- | ------- | ---------------- |  | - | --------------------- | - |  | ------------------------- | --------- | - | ------------ | - | --------- | ------------ |  | - | -------- | - |  | - | --------- | -
|Post-merger (In
thousands)                                                                           |               | Year Ended December 31, 2010 |        
|                                                                                                     | ParentCompany |                              |         | SubsidiaryIssuer |  |   | GuarantorSubsidiaries |   |  | Non-GuarantorSubsidiaries |           |   | Eliminations |   |           | Consolidated | 
|Revenue                                                                                              |               | $                            |        |                  |  | $ |                      |   |  | $                         | 1,125,243 |   |              | $ | 1,672,751 |              |  | $ |         |   |  | $ | 2,797,994 |  
|Operating expenses:                                                                                  |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Direct operating expenses                                                                            |               |                              |        |                  |  |   |                      |   |  |                           | 498,452   |   |              |   | 1,061,520 |              |  |   |         |   |  |   | 1,559,972 |  
|Selling, general and administrative expenses                                                         |               |                              |        |                  |  |   |                      |   |  |                           | 184,674   |   |              |   | 309,982   |              |  |   |         |   |  |   | 494,656   |  
|Corporate expenses                                                                                   |               |                              | 13,407  |                  |  |   | 451                   |   |  |                           | 66,390    |   |              |   | 27,348    |              |  |   |         |   |  |   | 107,596   |  
|Depreciation and amortization                                                                        |               |                              |        |                  |  |   |                      |   |  |                           | 193,973   |   |              |   | 219,615   |              |  |   |         |   |  |   | 413,588   |  
|Impairment charge                                                                                    |               |                              |        |                  |  |   |                      |   |  |                           | 9,351     |   |              |   | 2,142     |              |  |   |         |   |  |   | 11,493    |  
|Other operating expense  net                                                                        |               |                              |        |                  |  |   |                      |   |  |                           | (13,244   | ) |              |   | (10,509   | )            |  |   |         |   |  |   | (23,753   | )
|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Operating income (loss)                                                                              |               |                              | (13,407 | )                |  |   | (451                  | ) |  |                           | 159,159   |   |              |   | 41,635    |              |  |   |         |   |  |   | 186,936   |  
|Interest expense                                                                                     |               |                              | 447     |                  |  |   | 230,687               |   |  |                           | 4,312     |   |              |   | 4,007     |              |  |   |         |   |  |   | 239,453   |  
|Interest income on Due from Clear Channel Communications                                             |               |                              |        |                  |  |   |                      |   |  |                           | 19,460    |   |              |   |          |              |  |   |         |   |  |   | 19,460    |  
|Intercompany interest income                                                                         |               |                              | 14,062  |                  |  |   | 231,680               |   |  |                           |          |   |              |   | 987       |              |  |   | (246,729 | ) |  |   |          |  
|Intercompany interest expense                                                                        |               |                              | 484     |                  |  |   |                      |   |  |                           | 244,422   |   |              |   | 1,823     |              |  |   | (246,729 | ) |  |   |          |  
|Loss on marketable securities                                                                        |               |                              |        |                  |  |   |                      |   |  |                           |          |   |              |   | 6,490     |              |  |   |         |   |  |   | 6,490     |  
|Equity in earnings (loss) of nonconsolidated affiliates                                              |               |                              | (87,351 | )                |  |   | (26,733               | ) |  |                           | (26,899   | ) |              |   | (9,753    | )            |  |   | 140,800  |   |  |   | (9,936    | )
|Other income (expense)  net                                                                         |               |                              |        |                  |  |   |                      |   |  |                           | (16,266   | ) |              |   | 10,931    |              |  |   |         |   |  |   | (5,335    | )
|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Income (loss) before income taxes                                                                    |               |                              | (87,627 | )                |  |   | (26,191               | ) |  |                           | (113,280  | ) |              |   | 31,480    |              |  |   | 140,800  |   |  |   | (54,818   | )
|Income tax benefit (expense)                                                                         |               |                              | 104     |                  |  |   | 515                   |   |  |                           | 25,929    |   |              |   | (48,147   | )            |  |   |         |   |  |   | (21,599   | )
|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Consolidated net income (loss)                                                                       |               |                              | (87,523 | )                |  |   | (25,676               | ) |  |                           | (87,351   | ) |              |   | (16,667   | )            |  |   | 140,800  |   |  |   | (76,417   | )
|Less amount attributable to noncontrolling interest                                                  |               |                              |        |                  |  |   |                      |   |  |                           |          |   |              |   | 11,106    |              |  |   |         |   |  |   | 11,106    |  
|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Net income (loss) attributable to the Company                                                        |               | $                            | (87,523 | )                |  | $ | (25,676               | ) |  | $                         | (87,351   | ) |              | $ | (27,773   | )            |  | $ | 140,800  |   |  | $ | (87,523   | )
|Other comprehensive income (loss), net of tax:                                                       |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Foreign currency translation adjustments                                                             |               |                              |        |                  |  |   | 3,720                 |   |  |                           |          |   |              |   | 12,517    |              |  |   |         |   |  |   | 16,237    |  
|Foreign currency reclassification adjustment                                                         |               |                              |        |                  |  |   |                      |   |  |                           |          |   |              |   | 3,437     |              |  |   |         |   |  |   | 3,437     |  
|Unrealized loss on marketable securities                                                             |               |                              |        |                  |  |   |                      |   |  |                           |          |   |              |   | (7,809    | )            |  |   |         |   |  |   | (7,809    | )
|Reclassification adjustment for realized loss on marketable securities included in net income (loss) |               |                              |        |                  |  |   |                      |   |  |                           |          |   |              |   | 6,490     |              |  |   |         |   |  |   | 6,490     |  
|Equity in subsidiary comprehensive income                                                            |               |                              | 10,738  |                  |  |   | (318                  | ) |  |                           | 10,738    |   |              |   |          |              |  |   | (21,158  | ) |  |   |          |  
|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Comprehensive income (loss)                                                                          |               |                              | (76,785 | )                |  |   | (22,274               | ) |  |                           | (76,613   | ) |              |   | (13,138   | )            |  |   | 119,642  |   |  |   | (69,168   | )
|Less amount attributable to noncontrolling interest                                                  |               |                              |        |                  |  |   |                      |   |  |                           |          |   |              |   | 7,617     |              |  |   |         |   |  |   | 7,617     |  
|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  
|Comprehensive income (loss) attributable to the Company                                              |               | $                            | (76,785 | )                |  | $ | (22,274               | ) |  | $                         | (76,613   | ) |              | $ | (20,755   | )            |  | $ | 119,642  |   |  | $ | (76,785   | )
|                                                                                                     |               |                              |         |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |          |   |  |   |           |  



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CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|---------------------------------------------------------------------------------------------------- | ------------- | ---------------------------- | -------- | ---------------- |  | - | --------------------- | - |  | ------------------------- | --------- | - | ------------ | - | --------- | ------------ |  | - | --------- | - |  | - | ---------- | -
|Post-merger
(In thousands)                                                                           |               | Year Ended December 31, 2009 |         
|                                                                                                     | ParentCompany |                              |          | SubsidiaryIssuer |  |   | GuarantorSubsidiaries |   |  | Non-GuarantorSubsidiaries |           |   | Eliminations |   |           | Consolidated | 
|Revenue                                                                                              |               | $                            |         |                  |  | $ |                      |   |  | $                         | 1,102,716 |   |              | $ | 1,595,308 |              |  | $ |          |   |  | $ | 2,698,024  |  
|Operating expenses:                                                                                  |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|Direct operating expenses                                                                            |               |                              |         |                  |  |   |                      |   |  |                           | 534,423   |   |              |   | 1,090,660 |              |  |   |          |   |  |   | 1,625,083  |  
|Selling, general and administrative expenses                                                         |               |                              |         |                  |  |   |                      |   |  |                           | 172,818   |   |              |   | 311,586   |              |  |   |          |   |  |   | 484,404    |  
|Corporate expenses                                                                                   |               |                              | 13,859   |                  |  |   |                      |   |  |                           | 36,403    |   |              |   | 14,985    |              |  |   |          |   |  |   | 65,247     |  
|Depreciation and amortization                                                                        |               |                              |         |                  |  |   |                      |   |  |                           | 195,439   |   |              |   | 244,208   |              |  |   |          |   |  |   | 439,647    |  
|Impairment charge                                                                                    |               |                              |         |                  |  |   |                      |   |  |                           | 696,500   |   |              |   | 194,237   |              |  |   |          |   |  |   | 890,737    |  
|Other operating income (expense)  net                                                               |               |                              |         |                  |  |   |                      |   |  |                           | (11,807   | ) |              |   | 3,576     |              |  |   |          |   |  |   | (8,231     | )
|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|Operating loss                                                                                       |               |                              | (13,859  | )                |  |   |                      |   |  |                           | (544,674  | ) |              |   | (256,792  | )            |  |   |          |   |  |   | (815,325   | )
|Interest expense                                                                                     |               |                              | 410      |                  |  |   | 5,702                 |   |  |                           | 143,570   |   |              |   | 5,237     |              |  |   |          |   |  |   | 154,919    |  
|Interest income on Due from Clear Channel Communications                                             |               |                              |         |                  |  |   |                      |   |  |                           | 724       |   |              |   |          |              |  |   |          |   |  |   | 724        |  
|Intercompany interest income                                                                         |               |                              | 10,729   |                  |  |   | 7,198                 |   |  |                           | 1,086     |   |              |   | 1,225     |              |  |   | (20,238   | ) |  |   |           |  
|Intercompany interest expense                                                                        |               |                              | 860      |                  |  |   |                      |   |  |                           | 16,751    |   |              |   | 2,627     |              |  |   | (20,238   | ) |  |   |           |  
|Loss on marketable securities                                                                        |               |                              |         |                  |  |   |                      |   |  |                           |          |   |              |   | 11,315    |              |  |   |          |   |  |   | 11,315     |  
|Equity in earnings (loss) of nonconsolidated affiliates                                              |               |                              | (864,323 | )                |  |   | (233,027              | ) |  |                           | (287,430  | ) |              |   | (30,928   | )            |  |   | 1,384,266 |   |  |   | (31,442    | )
|Other expense  net                                                                                  |               |                              | (1,683   | )                |  |   |                      |   |  |                           | (2,806    | ) |              |   | (4,879    | )            |  |   |          |   |  |   | (9,368     | )
|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|Income (loss) before income taxes                                                                    |               |                              | (870,406 | )                |  |   | (231,531              | ) |  |                           | (993,421  | ) |              |   | (310,553  | )            |  |   | 1,384,266 |   |  |   | (1,021,645 | )
|Income tax benefit (expense)                                                                         |               |                              | 2,217    |                  |  |   | (2,742                | ) |  |                           | 129,481   |   |              |   | 20,154    |              |  |   |          |   |  |   | 149,110    |  
|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|Consolidated net income (loss)                                                                       |               |                              | (868,189 | )                |  |   | (234,273              | ) |  |                           | (863,940  | ) |              |   | (290,399  | )            |  |   | 1,384,266 |   |  |   | (872,535   | )
|Less amount attributable to noncontrolling interest                                                  |               |                              |         |                  |  |   |                      |   |  |                           |          |   |              |   | (4,346    | )            |  |   |          |   |  |   | (4,346     | )
|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|Net income (loss) attributable to the Company                                                        |               | $                            | (868,189 | )                |  | $ | (234,273              | ) |  | $                         | (863,940  | ) |              | $ | (286,053  | )            |  | $ | 1,384,266 |   |  | $ | (868,189   | )
|Other comprehensive income (loss), net of tax:                                                       |               |                              |         |                  |  |   |                      |   |  |                           |          |   |              |   |          |              |  |   |          |   |  |   |           |  
|Foreign currency translation adjustments                                                             |               |                              |         |                  |  |   | (286                  | ) |  |                           |          |   |              |   | 118,918   |              |  |   |          |   |  |   | 118,632    |  
|Foreign currency reclassification adjustment                                                         |               |                              |         |                  |  |   |                      |   |  |                           |          |   |              |   | (523      | )            |  |   |          |   |  |   | (523       | )
|Unrealized loss on marketable securities                                                             |               |                              |         |                  |  |   |                      |   |  |                           |          |   |              |   | (9,971    | )            |  |   |          |   |  |   | (9,971     | )
|Reclassification adjustment for realized loss on marketable securities included in net income (loss) |               |                              |         |                  |  |   |                      |   |  |                           |          |   |              |   | 11,315    |              |  |   |          |   |  |   | 11,315     |  
|Equity in subsidiary comprehensive income                                                            |               |                              | 111,403  |                  |  |   | 79,329                |   |  |                           | 111,403   |   |              |   |          |              |  |   | (302,135  | ) |  |   |           |  
|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|Comprehensive income (loss)                                                                          |               |                              | (756,786 | )                |  |   | (155,230              | ) |  |                           | (752,537  | ) |              |   | (166,314  | )            |  |   | 1,082,131 |   |  |   | (748,736   | )
|Less amount attributable to noncontrolling interest                                                  |               |                              |         |                  |  |   |                      |   |  |                           |          |   |              |   | 8,050     |              |  |   |          |   |  |   | 8,050      |  
|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  
|Comprehensive income (loss) attributable to the Company                                              |               | $                            | (756,786 | )                |  | $ | (155,230              | ) |  | $                         | (752,537  | ) |              | $ | (174,364  | )            |  | $ | 1,082,131 |   |  | $ | (756,786   | )
|                                                                                                     |               |                              |          |                  |  |   |                       |   |  |                           |           |   |              |   |           |              |  |   |           |   |  |   |            |  



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CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|---------------------------------------------------------------------------------------------------- | ------------- | --------------------------------------------- | ---------- | ---------------- |  | - | --------------------- | - |  | ------------------------- | ---------- | - | ------------ | - | -------- | ------------ |  | - | --------- | - |  | - | ---------- | -
|Post-merger
(In thousands)                                                                           |               | Period from July 31 through December 31, 2008 |           
|                                                                                                     | ParentCompany |                                               |            | SubsidiaryIssuer |  |   | GuarantorSubsidiaries |   |  | Non-GuarantorSubsidiaries |            |   | Eliminations |   |          | Consolidated | 
|Revenue                                                                                              |               | $                                             |           |                  |  | $ |                      |   |  | $                         | 523,553    |   |              | $ | 803,671  |              |  | $ |          |   |  | $ | 1,327,224  |  
|Operating expenses:                                                                                  |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Direct operating expenses                                                                            |               |                                               |           |                  |  |   |                      |   |  |                           | 241,222    |   |              |   | 521,482  |              |  |   |          |   |  |   | 762,704    |  
|Selling, general and administrative expenses                                                         |               |                                               |           |                  |  |   |                      |   |  |                           | 99,332     |   |              |   | 162,192  |              |  |   |          |   |  |   | 261,524    |  
|Corporate expenses                                                                                   |               |                                               | 4,449      |                  |  |   |                      |   |  |                           | 16,345     |   |              |   | 10,887   |              |  |   |          |   |  |   | 31,681     |  
|Depreciation and amortization                                                                        |               |                                               |           |                  |  |   |                      |   |  |                           | 84,642     |   |              |   | 140,071  |              |  |   |          |   |  |   | 224,713    |  
|Impairment charges                                                                                   |               |                                               |           |                  |  |   |                      |   |  |                           | 3,019,528  |   |              |   | 198,121  |              |  |   |          |   |  |   | 3,217,649  |  
|Other operating income net                                                                          |               |                                               |           |                  |  |   |                      |   |  |                           | 4,546      |   |              |   | 324      |              |  |   |          |   |  |   | 4,870      |  
|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Operating loss                                                                                       |               |                                               | (4,449     | )                |  |   |                      |   |  |                           | (2,932,970 | ) |              |   | (228,758 | )            |  |   |          |   |  |   | (3,166,177 | )
|Interest expense                                                                                     |               |                                               | 189        |                  |  |   | (1                    | ) |  |                           | 71,082     |   |              |   | 2,455    |              |  |   |          |   |  |   | 73,725     |  
|Interest income on Due from Clear Channel Communications                                             |               |                                               |           |                  |  |   |                      |   |  |                           | 862        |   |              |   |         |              |  |   |          |   |  |   | 862        |  
|Intercompany interest income                                                                         |               |                                               | 5,756      |                  |  |   | 1,474                 |   |  |                           | 1,301      |   |              |   | 897      |              |  |   | (9,428    | ) |  |   |           |  
|Intercompany interest expense                                                                        |               |                                               | 698        |                  |  |   |                      |   |  |                           | 5,955      |   |              |   | 2,775    |              |  |   | (9,428    | ) |  |   |           |  
|Loss on marketable securities                                                                        |               |                                               |           |                  |  |   |                      |   |  |                           |           |   |              |   | 59,842   |              |  |   |          |   |  |   | 59,842     |  
|Equity in earnings (loss) of nonconsolidated affiliates                                              |               |                                               | (3,018,903 | )                |  |   | (255,806              | ) |  |                           | (277,256   | ) |              |   | (1,348   | )            |  |   | 3,551,204 |   |  |   | (2,109     | )
|Other income (expense)  net                                                                         |               |                                               |           |                  |  |   |                      |   |  |                           | (2,843     | ) |              |   | 14,957   |              |  |   |          |   |  |   | 12,114     |  
|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Income (loss) before income taxes                                                                    |               |                                               | (3,018,483 | )                |  |   | (254,331              | ) |  |                           | (3,287,943 | ) |              |   | (279,324 | )            |  |   | 3,551,204 |   |  |   | (3,288,877 | )
|Income tax benefit (expense)                                                                         |               |                                               | (154       | )                |  |   | (943                  | ) |  |                           | 269,760    |   |              |   | 3,232    |              |  |   |          |   |  |   | 271,895    |  
|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Consolidated net income (loss)                                                                       |               |                                               | (3,018,637 | )                |  |   | (255,274              | ) |  |                           | (3,018,183 | ) |              |   | (276,092 | )            |  |   | 3,551,204 |   |  |   | (3,016,982 | )
|Less amount attributable to noncontrolling interest                                                  |               |                                               |           |                  |  |   |                      |   |  |                           |           |   |              |   | 1,655    |              |  |   |          |   |  |   | 1,655      |  
|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Net income (loss) attributable to the Company                                                        |               | $                                             | (3,018,637 | )                |  | $ | (255,274              | ) |  | $                         | (3,018,183 | ) |              | $ | (277,747 | )            |  | $ | 3,551,204 |   |  | $ | (3,018,637 | )
|Other comprehensive income (loss), net of tax:                                                       |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Foreign currency translation adjustments                                                             |               |                                               |           |                  |  |   |                      |   |  |                           |           |   |              |   | (341,113 | )            |  |   |          |   |  |   | (341,113   | )
|Foreign currency reclassification adjustment                                                         |               |                                               |           |                  |  |   |                      |   |  |                           |           |   |              |   |         |              |  |   |          |   |  |   |           |  
|Unrealized loss on marketable securities                                                             |               |                                               |           |                  |  |   |                      |   |  |                           |           |   |              |   | (59,825  | )            |  |   |          |   |  |   | (59,825    | )
|Reclassification adjustment for realized loss on marketable securities included in net income (loss) |               |                                               |           |                  |  |   |                      |   |  |                           |           |   |              |   | 59,842   |              |  |   |          |   |  |   | 59,842     |  
|Equity in subsidiary comprehensive income                                                            |               |                                               | (329,580   | )                |  |   | (266,227              | ) |  |                           | (329,580   | ) |              |   |         |              |  |   | 925,387   |   |  |   |           |  
|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Comprehensive income (loss)                                                                          |               |                                               | (3,348,217 | )                |  |   | (521,501              | ) |  |                           | (3,347,763 | ) |              |   | (618,843 | )            |  |   | 4,476,591 |   |  |   | (3,359,733 | )
|Less amount attributable to noncontrolling interest                                                  |               |                                               |           |                  |  |   |                      |   |  |                           |           |   |              |   | (11,516  | )            |  |   |          |   |  |   | (11,516    | )
|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  
|Comprehensive income (loss) attributable to the Company                                              |               | $                                             | (3,348,217 | )                |  | $ | (521,501              | ) |  | $                         | (3,347,763 | ) |              | $ | (607,327 | )            |  | $ | 4,476,591 |   |  | $ | (3,348,217 | )
|                                                                                                     |               |                                               |            |                  |  |   |                       |   |  |                           |            |   |              |   |          |              |  |   |           |   |  |   |            |  



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CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|-------------------------------------------------------- | ------------- | ------------------------------------------- | ------- | ---------------- |  | - | --------------------- | - |  | ------------------------- | ------- | - | ------------ | - | --------- | ------------ |  | - | -------- | - |  | - | --------- | -
|Pre-merger
(In thousands)                                |               | Period from January 1 through July 30, 2008 |        
|                                                         | ParentCompany |                                             |         | SubsidiaryIssuer |  |   | GuarantorSubsidiaries |   |  | Non-GuarantorSubsidiaries |         |   | Eliminations |   |           | Consolidated | 
|Revenue                                                  |               | $                                           |        |                  |  | $ |                      |   |  | $                         | 761,648 |   |              | $ | 1,200,415 |              |  | $ |         |   |  | $ | 1,962,063 |  
|Operating expenses:                                      |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|Direct operating expenses                                |               |                                             |        |                  |  |   |                      |   |  |                           | 328,598 |   |              |   | 790,834   |              |  |   |         |   |  |   | 1,119,432 |  
|Selling, general and administrative expenses             |               |                                             |        |                  |  |   |                      |   |  |                           | 119,437 |   |              |   | 225,409   |              |  |   |         |   |  |   | 344,846   |  
|Corporate expenses                                       |               |                                             | 2,773   |                  |  |   |                      |   |  |                           | 24,626  |   |              |   | 11,965    |              |  |   |         |   |  |   | 39,364    |  
|Depreciation and amortization                            |               |                                             |        |                  |  |   |                      |   |  |                           | 109,619 |   |              |   | 138,018   |              |  |   |         |   |  |   | 247,637   |  
|Other operating income  net                             |               |                                             |        |                  |  |   |                      |   |  |                           | 4,525   |   |              |   | 6,453     |              |  |   |         |   |  |   | 10,978    |  
|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|Operating income (loss)                                  |               |                                             | (2,773  | )                |  |   |                      |   |  |                           | 183,893 |   |              |   | 40,642    |              |  |   |         |   |  |   | 221,762   |  
|Interest expense                                         |               |                                             | 170     |                  |  |   |                      |   |  |                           | 86,704  |   |              |   | 4,503     |              |  |   |         |   |  |   | 91,377    |  
|Interest income on Due from Clear Channel Communications |               |                                             |        |                  |  |   |                      |   |  |                           | 2,590   |   |              |   |          |              |  |   |         |   |  |   | 2,590     |  
|Intercompany interest income                             |               |                                             | 6,718   |                  |  |   | 2,529                 |   |  |                           |        |   |              |   | 11        |              |  |   | (9,258   | ) |  |   |          |  
|Intercompany interest expense                            |               |                                             |        |                  |  |   |                      |   |  |                           | 6,729   |   |              |   | 2,529     |              |  |   | (9,258   | ) |  |   |          |  
|Equity in earnings (loss) of nonconsolidated affiliates  |               |                                             | 165,284 |                  |  |   | 101,170               |   |  |                           | 109,198 |   |              |   | 70,963    |              |  |   | (375,773 | ) |  |   | 70,842    |  
|Other income (expense)  net                             |               |                                             | (183    | )                |  |   |                      |   |  |                           | (636    | ) |              |   | 14,184    |              |  |   |         |   |  |   | 13,365    |  
|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|Income (loss) before income taxes                        |               |                                             | 168,876 |                  |  |   | 103,699               |   |  |                           | 201,612 |   |              |   | 118,768   |              |  |   | (375,773 | ) |  |   | 217,182   |  
|Income tax expense                                       |               |                                             | (1,322  | )                |  |   | (1,438                | ) |  |                           | (36,328 | ) |              |   | (12,488   | )            |  |   |         |   |  |   | (51,576   | )
|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|Consolidated net income (loss)                           |               |                                             | 167,554 |                  |  |   | 102,261               |   |  |                           | 165,284 |   |              |   | 106,280   |              |  |   | (375,773 | ) |  |   | 165,606   |  
|Less amount attributable to noncontrolling interest      |               |                                             |        |                  |  |   |                      |   |  |                           |        |   |              |   | (1,948    | )            |  |   |         |   |  |   | (1,948    | )
|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|Net income (loss) attributable to the Company            |               | $                                           | 167,554 |                  |  | $ | 102,261               |   |  | $                         | 165,284 |   |              | $ | 108,228   |              |  | $ | (375,773 | ) |  | $ | 167,554   |  
|Other comprehensive income (loss), net of tax:           |               |                                             |        |                  |  |   |                      |   |  |                           |        |   |              |   |          |              |  |   |         |   |  |   |          |  
|Foreign currency translation adjustments                 |               |                                             |        |                  |  |   |                      |   |  |                           |        |   |              |   | 84,603    |              |  |   |         |   |  |   | 84,603    |  
|Foreign currency reclassification adjustment             |               |                                             |        |                  |  |   |                      |   |  |                           |        |   |              |   | 2,588     |              |  |   |         |   |  |   | 2,588     |  
|Unrealized loss on marketable securities                 |               |                                             |        |                  |  |   |                      |   |  |                           |        |   |              |   | (27,496   | )            |  |   |         |   |  |   | (27,496   | )
|Equity in subsidiary comprehensive income                |               |                                             | 45,676  |                  |  |   | 36,516                |   |  |                           | 45,676  |   |              |   |          |              |  |   | (127,868 | ) |  |   |          |  
|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|Comprehensive income (loss)                              |               |                                             | 213,230 |                  |  |   | 138,777               |   |  |                           | 210,960 |   |              |   | 167,923   |              |  |   | (503,641 | ) |  |   | 227,249   |  
|Less amount attributable to noncontrolling interest      |               |                                             |        |                  |  |   |                      |   |  |                           |        |   |              |   | 14,019    |              |  |   |         |   |  |   | 14,019    |  
|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  
|Comprehensive income (loss) attributable to the Company  |               | $                                           | 213,230 |                  |  | $ | 138,777               |   |  | $                         | 210,960 |   |              | $ | 153,904   |              |  | $ | (503,641 | ) |  | $ | 213,230   |  
|                                                         |               |                                             |         |                  |  |   |                       |   |  |                           |         |   |              |   |           |              |  |   |          |   |  |   |           |  



100



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##### Table of Contents

CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                                                                   |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|-------------------------------------------------------------------------------------------------- |  | ---------------------------- | -------- | - | ---------------- | - | -------- | --------------------- |  | - | ------------------------- | - |  | ------------ | -------- | - | ------------ | - | -------- | - |  | - | -------- | -
|Post-merger                                                                                        |  | Year Ended December 31, 2010 |         
|(In thousands)                                                                                     |  | ParentCompany                |          |   | SubsidiaryIssuer |   |          | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Eliminations |          |   | Consolidated |  
|Cash flows from operating activities:                                                              |  |                              |          |   |                  |   |          |                       |  |   |                           |   | 
|Consolidated net income (loss)                                                                     |  | $                            | (87,523  | ) |                  | $ | (25,676  | )                     |  | $ | (87,351                   | ) |  | $            | (16,667  | ) |              | $ | 140,800  |   |  | $ | (76,417  | )
|                                                                                                   |  |                              |          |   |                  |  
|Reconciling items:                                                                                 |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Impairment charges                                                                                 |  |                              |         |   |                  |   |         |                       |  |   | 9,351                     |   |  |              | 2,142    |   |              |   |         |   |  |   | 11,493   |  
|Depreciation and amortization                                                                      |  |                              |         |   |                  |   |         |                       |  |   | 193,973                   |   |  |              | 219,615  |   |              |   |         |   |  |   | 413,588  |  
|Deferred tax expense (benefit)                                                                     |  |                              |         |   |                  |   |         |                       |  |   | (15,158                   | ) |  |              | 796      |   |              |   |         |   |  |   | (14,362  | )
|Provision for doubtful accounts                                                                    |  |                              |         |   |                  |   |         |                       |  |   | 2,284                     |   |  |              | 6,584    |   |              |   |         |   |  |   | 8,868    |  
|Share-based compensation                                                                           |  |                              |         |   |                  |   |         |                       |  |   | 9,591                     |   |  |              | 2,746    |   |              |   |         |   |  |   | 12,337   |  
|Loss on sale of operating assets                                                                   |  |                              |         |   |                  |   |         |                       |  |   | 13,244                    |   |  |              | 10,509   |   |              |   |         |   |  |   | 23,753   |  
|Loss on marketable securities                                                                      |  |                              |         |   |                  |   |         |                       |  |   |                          |   |  |              | 6,490    |   |              |   |         |   |  |   | 6,490    |  
|Other, net                                                                                         |  |                              | 87,351   |   |                  |   | 30,453   |                       |  |   | 30,522                    |   |  |              | 17,982   |   |              |   | (140,800 | ) |  |   | 25,508   |  
|Changes in operating assets and liabilities:                                                       |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Increase in accounts receivable                                                                    |  |                              |         |   |                  |   |         |                       |  |   | (23,460                   | ) |  |              | (23,653  | ) |              |   |         |   |  |   | (47,113  | )
|(Increase) decrease in Federal income taxes receivable                                             |  |                              | 774      |   |                  |   | (1,502   | )                     |  |   | 50,136                    |   |  |              | 1,550    |   |              |   |         |   |  |   | 50,958   |  
|Increase (decrease) in accounts payable, accrued expenses and other liabilities                    |  |                              |         |   |                  |   | (117     | )                     |  |   | 55,016                    |   |  |              | (4,176   | ) |              |   |         |   |  |   | 50,723   |  
|Increase (decrease) in deferred income                                                             |  |                              |         |   |                  |   |         |                       |  |   | 232                       |   |  |              | (7,277   | ) |              |   |         |   |  |   | (7,045   | )
|Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions |  |                              | 815      |   |                  |   | (267     | )                     |  |   | 10,652                    |   |  |              | 55,236   |   |              |   |         |   |  |   | 66,436   |  
|                                                                                                   |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Net cash provided by operating activities                                                          |  |                              | 1,417    |   |                  |   | 2,891    |                       |  |   | 249,032                   |   |  |              | 271,877  |   |              |   |         |   |  |   | 525,217  |  
|Cash flows from investing activities:                                                              |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Purchases of property, plant and equipment                                                         |  |                              |         |   |                  |   |         |                       |  |   | (90,702                   | ) |  |              | (104,571 | ) |              |   |         |   |  |   | (195,273 | )
|Proceeds from disposal of assets                                                                   |  |                              |         |   |                  |   |         |                       |  |   | 6,501                     |   |  |              | 1,252    |   |              |   |         |   |  |   | 7,753    |  
|Acquisition of operating assets, net of cash acquired                                              |  |                              |         |   |                  |   |         |                       |  |   | (1,765                    | ) |  |              | (76      | ) |              |   |         |   |  |   | (1,841   | )
|Equity contributions to subsidiaries                                                               |  |                              |         |   |                  |   |         |                       |  |   | (331                      | ) |  |              |         |   |              |   | 331      |   |  |   |         |  
|Decrease (increase) in intercompany notes receivable  net                                         |  |                              |         |   |                  |   | 109,045  |                       |  |   |                          |   |  |              | 404      |   |              |   | (109,449 | ) |  |   |         |  
|Dividends from subsidiaries                                                                        |  |                              |         |   |                  |   |         |                       |  |   | 107                       |   |  |              |         |   |              |   | (107     | ) |  |   |         |  
|Change in other  net                                                                              |  |                              |         |   |                  |   |         |                       |  |   | (1,797                    | ) |  |              | (7,547   | ) |              |   |         |   |  |   | (9,344   | )
|                                                                                                   |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Net cash provided by (used for) investing activities                                               |  |                              |         |   |                  |   | 109,045  |                       |  |   | (87,987                   | ) |  |              | (110,538 | ) |              |   | (109,225 | ) |  |   | (198,705 | )
|Cash flows from financing activities:                                                              |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Draws on credit facilities                                                                         |  |                              |         |   |                  |   |         |                       |  |   |                          |   |  |              | 4,670    |   |              |   |         |   |  |   | 4,670    |  
|Payments on credit facilities                                                                      |  |                              |         |   |                  |   |         |                       |  |   | (78                       | ) |  |              | (47,017  | ) |              |   |         |   |  |   | (47,095  | )
|Proceeds from long-term debt                                                                       |  |                              |         |   |                  |   |         |                       |  |   |                          |   |  |              | 6,844    |   |              |   |         |   |  |   | 6,844    |  
|Payments on long-term debt                                                                         |  |                              |         |   |                  |   |         |                       |  |   |                          |   |  |              | (13,212  | ) |              |   |         |   |  |   | (13,212  | )
|Net transfers to Clear Channel Communications                                                      |  |                              | (260,470 | ) |                  |   |         |                       |  |   |                          |   |  |              |         |   |              |   |         |   |  |   | (260,470 | )
|Intercompany funding                                                                               |  |                              | 258,268  |   |                  |   | (111,936 | )                     |  |   | (171,569                  | ) |  |              | 25,237   |   |              |   |         |   |  |   |         |  
|Increase (decrease) in intercompany notes payable  net                                            |  |                              | (130     | ) |                  |   |         |                       |  |   | (274                      | ) |  |              | (109,045 | ) |              |   | 109,449  |   |  |   |         |  
|Dividends declared and paid                                                                        |  |                              |         |   |                  |   |         |                       |  |   |                          |   |  |              | (107     | ) |              |   | 107      |   |  |   |         |  
|Equity contributions from parent                                                                   |  |                              |         |   |                  |   |         |                       |  |   |                          |   |  |              | 331      |   |              |   | (331     | ) |  |   |         |  
|Change in other  net                                                                              |  |                              | 915      |   |                  |   |         |                       |  |   |                          |   |  |              | (6,115   | ) |              |   |         |   |  |   | (5,200   | )
|                                                                                                   |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Net cash provided by (used for) financing activities                                               |  |                              | (1,417   | ) |                  |   | (111,936 | )                     |  |   | (171,921                  | ) |  |              | (138,414 | ) |              |   | 109,225  |   |  |   | (314,463 | )
|                                                                                                   |  |                              |          |   |                  |  
|Effect of exchange rate changes on cash                                                            |  |                              |         |   |                  |   |         |                       |  |   |                          |   |  |              | 2,533    |   |              |   |         |   |  |   | 2,533    |  
|                                                                                                   |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|                                                                                                   |  |                              |          |   |                  |  
|Net increase (decrease) in cash and cash equivalents                                               |  |                              |         |   |                  |   |         |                       |  |   | (10,876                   | ) |  |              | 25,458   |   |              |   |         |   |  |   | 14,582   |  
|Cash and cash equivalents at beginning of period                                                   |  |                              |         |   |                  |   |         |                       |  |   | 431,105                   |   |  |              | 178,331  |   |              |   |         |   |  |   | 609,436  |  
|                                                                                                   |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|                                                                                                   |  |                              |          |   |                  |  
|Cash and cash equivalents at end of period                                                         |  | $                            |         |   |                  | $ |         |                       |  | $ | 420,229                   |   |  | $            | 203,789  |   |              | $ |         |   |  | $ | 624,018  |  
|                                                                                                   |  |                              |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  



101



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##### Table of Contents

CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                                                                   |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|-------------------------------------------------------------------------------------------------- |  | ---------------------------- | -------- | - | ---------------- | - | ---------- | --------------------- |  | - | ------------------------- | - |  | ------------ | -------- | - | ------------ | - | ---------- | - |  | - | ---------- | -
|Post-merger                                                                                        |  | Year Ended December 31, 2009 |         
|(In thousands)                                                                                     |  | ParentCompany                |          |   | SubsidiaryIssuer |   |            | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Eliminations |          |   | Consolidated |  
|Cash flows from operating activities:                                                              |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Consolidated net income (loss)                                                                     |  | $                            | (868,189 | ) |                  | $ | (234,273   | )                     |  | $ | (863,940                  | ) |  | $            | (290,399 | ) |              | $ | 1,384,266  |   |  | $ | (872,535   | )
|                                                                                                   |  |                              |          |   |                  |  
|Reconciling items:                                                                                 |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Impairment charges                                                                                 |  |                              |         |   |                  |   |           |                       |  |   | 696,500                   |   |  |              | 194,237  |   |              |   |           |   |  |   | 890,737    |  
|Depreciation and amortization                                                                      |  |                              |         |   |                  |   |           |                       |  |   | 195,439                   |   |  |              | 244,208  |   |              |   |           |   |  |   | 439,647    |  
|Deferred tax expense (benefit)                                                                     |  |                              | 224      |   |                  |   |           |                       |  |   | (99,644                   | ) |  |              | (32,921  | ) |              |   |           |   |  |   | (132,341   | )
|Provision for doubtful accounts                                                                    |  |                              |         |   |                  |   |           |                       |  |   | 2,605                     |   |  |              | 14,975   |   |              |   |           |   |  |   | 17,580     |  
|Share-based compensation                                                                           |  |                              |         |   |                  |   |           |                       |  |   | 9,692                     |   |  |              | 2,412    |   |              |   |           |   |  |   | 12,104     |  
|(Gain) loss on sale of operating assets                                                            |  |                              |         |   |                  |   |           |                       |  |   | 11,807                    |   |  |              | (3,576   | ) |              |   |           |   |  |   | 8,231      |  
|Loss on marketable securities                                                                      |  |                              |         |   |                  |   |           |                       |  |   |                          |   |  |              | 11,315   |   |              |   |           |   |  |   | 11,315     |  
|Other  net                                                                                        |  |                              | 863,766  |   |                  |   | 232,741    |                       |  |   | 289,432                   |   |  |              | 35,426   |   |              |   | (1,384,266 | ) |  |   | 37,099     |  
|Changes in operating assets and liabilities:                                                       |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Decrease (increase) in accounts receivable                                                         |  |                              |         |   |                  |   |           |                       |  |   | (87                       | ) |  |              | 68,089   |   |              |   |           |   |  |   | 68,002     |  
|Increase (decrease) in accounts payable, accrued expenses and other liabilities                    |  |                              |         |   |                  |   | 225        |                       |  |   | 18,387                    |   |  |              | (6,855   | ) |              |   |           |   |  |   | 11,757     |  
|Decrease in deferred income                                                                        |  |                              |         |   |                  |   |           |                       |  |   | (1,641                    | ) |  |              | (346     | ) |              |   |           |   |  |   | (1,987     | )
|Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions |  |                              | (1,977   | ) |                  |   | 992        |                       |  |   | (30,405                   | ) |  |              | (16,955  | ) |              |   |           |   |  |   | (48,345    | )
|                                                                                                   |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Net cash provided by (used for) operating activities                                               |  |                              | (6,176   | ) |                  |   | (315       | )                     |  |   | 228,145                   |   |  |              | 219,610  |   |              |   |           |   |  |   | 441,264    |  
|Cash flows from investing activities:                                                              |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Purchases of property, plant and equipment                                                         |  |                              |         |   |                  |   |           |                       |  |   | (79,523                   | ) |  |              | (96,430  | ) |              |   |           |   |  |   | (175,953   | )
|Proceeds from disposal of assets                                                                   |  |                              |         |   |                  |   |           |                       |  |   | 6,682                     |   |  |              | 11,462   |   |              |   |           |   |  |   | 18,144     |  
|Acquisition of operating assets, net of cash acquired                                              |  |                              |         |   |                  |   |           |                       |  |   | (5,032                    | ) |  |              | 99       |   |              |   |           |   |  |   | (4,933     | )
|Equity contributions to subsidiaries                                                               |  |                              | (500,000 | ) |                  |   |           |                       |  |   | (58                       | ) |  |              |         |   |              |   | 500,058    |   |  |   |           |  
|Decrease (increase) in intercompany notes receivable  net                                         |  |                              |         |   |                  |   | (2,500,000 | )                     |  |   |                          |   |  |              | 4,663    |   |              |   | 2,495,337  |   |  |   |           |  
|Dividends from subsidiaries                                                                        |  |                              |         |   |                  |   |           |                       |  |   | 17,028                    |   |  |              |         |   |              |   | (17,028    | ) |  |   |           |  
|Change in other  net                                                                              |  |                              | 2,132    |   |                  |   |           |                       |  |   | (3,282                    | ) |  |              | 1,028    |   |              |   |           |   |  |   | (122       | )
|                                                                                                   |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Net cash provided by (used for) investing activities                                               |  |                              | (497,868 | ) |                  |   | (2,500,000 | )                     |  |   | (64,185                   | ) |  |              | (79,178  | ) |              |   | 2,978,367  |   |  |   | (162,864   | )
|Cash flows from financing activities:                                                              |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Draws on credit facilities                                                                         |  |                              |         |   |                  |   |           |                       |  |   |                          |   |  |              | 7,125    |   |              |   |           |   |  |   | 7,125      |  
|Payments on credit facilities                                                                      |  |                              |         |   |                  |   |           |                       |  |   | (1,052                    | ) |  |              | (2,312   | ) |              |   |           |   |  |   | (3,364     | )
|Proceeds from long-term debt                                                                       |  |                              |         |   |                  |   | 2,500,000  |                       |  |   |                          |   |  |              |         |   |              |   |           |   |  |   | 2,500,000  |  
|Payments on long-term debt                                                                         |  |                              |         |   |                  |   |           |                       |  |   | (2,500,000                | ) |  |              | (5,913   | ) |              |   |           |   |  |   | (2,505,913 | )
|Net transfers from Clear Channel Communications                                                    |  |                              | 319,401  |   |                  |   |           |                       |  |   |                          |   |  |              |         |   |              |   |           |   |  |   | 319,401    |  
|Deferred financing charges                                                                         |  |                              |         |   |                  |   |           |                       |  |   | (60,330                   | ) |  |              |         |   |              |   |           |   |  |   | (60,330    | )
|Purchases of noncontrolling interest                                                               |  |                              |         |   |                  |   |           |                       |  |   |                          |   |  |              | (25,153  | ) |              |   |           |   |  |   | (25,153    | )
|Intercompany funding                                                                               |  |                              | 191,893  |   |                  |   | 315        |                       |  |   | (159,150                  | ) |  |              | (33,058  | ) |              |   |           |   |  |   |           |  
|Increase (decrease) in intercompany notes payable  net                                            |  |                              | (7,140   | ) |                  |   |           |                       |  |   | 2,502,477                 |   |  |              |         |   |              |   | (2,495,337 | ) |  |   |           |  
|Dividends declared and paid                                                                        |  |                              |         |   |                  |   |           |                       |  |   |                          |   |  |              | (17,028  | ) |              |   | 17,028     |   |  |   |           |  
|Equity contributions from parent                                                                   |  |                              |         |   |                  |   |           |                       |  |   | 500,000                   |   |  |              | 58       |   |              |   | (500,058   | ) |  |   |           |  
|Change in other  net                                                                              |  |                              | (110     | ) |                  |   |           |                       |  |   |                          |   |  |              |         |   |              |   |           |   |  |   | (110       | )
|                                                                                                   |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Net cash provided by (used for) financing activities                                               |  |                              | 504,044  |   |                  |   | 2,500,315  |                       |  |   | 281,945                   |   |  |              | (76,281  | ) |              |   | (2,978,367 | ) |  |   | 231,656    |  
|                                                                                                   |  |                              |          |   |                  |  
|Effect of exchange rate changes on cash                                                            |  |                              |         |   |                  |   |           |                       |  |   |                          |   |  |              | 4,568    |   |              |   |           |   |  |   | 4,568      |  
|                                                                                                   |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|                                                                                                   |  |                              |          |   |                  |  
|Net increase in cash and cash equivalents                                                          |  |                              |         |   |                  |   |           |                       |  |   | 445,905                   |   |  |              | 68,719   |   |              |   |           |   |  |   | 514,624    |  
|                                                                                                   |  |                              |          |   |                  |  
|Cash and cash equivalents at beginning of period                                                   |  |                              |         |   |                  |   |           |                       |  |   | (14,800                   | ) |  |              | 109,612  |   |              |   |           |   |  |   | 94,812     |  
|                                                                                                   |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|                                                                                                   |  |                              |          |   |                  |  
|Cash and cash equivalents at end of period                                                         |  | $                            |         |   |                  | $ |           |                       |  | $ | 431,105                   |   |  | $            | 178,331  |   |              | $ |           |   |  | $ | 609,436    |  
|                                                                                                   |  |                              |          |   |                  |   |            |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  



102



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##### Table of Contents

CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                                                                   |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|-------------------------------------------------------------------------------------------------- |  | --------------------------------------------- | ---------- | - | ---------------- | - | -------- | --------------------- |  | - | ------------------------- | - |  | ------------ | -------- | - | ------------ | - | ---------- | - |  | - | ---------- | -
|Post-merger                                                                                        |  | Period from July 31 through December 31, 2008 |           
|(In thousands)                                                                                     |  | ParentCompany                                 |            |   | SubsidiaryIssuer |   |          | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Eliminations |          |   | Consolidated |  
|Cash flows from operating activities:                                                              |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Consolidated net income (loss)                                                                     |  | $                                             | (3,018,637 | ) |                  | $ | (255,274 | )                     |  | $ | (3,018,183                | ) |  | $            | (276,092 | ) |              | $ | 3,551,204  |   |  | $ | (3,016,982 | )
|                                                                                                   |  |                                               |            |   |                  |  
|Reconciling items:                                                                                 |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Impairment charges                                                                                 |  |                                               |           |   |                  |   |         |                       |  |   | 3,019,528                 |   |  |              | 198,121  |   |              |   |           |   |  |   | 3,217,649  |  
|Depreciation and amortization                                                                      |  |                                               |           |   |                  |   |         |                       |  |   | 84,642                    |   |  |              | 140,071  |   |              |   |           |   |  |   | 224,713    |  
|Deferred tax benefit                                                                               |  |                                               | (97        | ) |                  |   |         |                       |  |   | (253,322                  | ) |  |              | (15,431  | ) |              |   |           |   |  |   | (268,850   | )
|Provision for doubtful accounts                                                                    |  |                                               |           |   |                  |   |         |                       |  |   | 16,268                    |   |  |              | 8,000    |   |              |   |           |   |  |   | 24,268     |  
|Share-based compensation                                                                           |  |                                               |           |   |                  |   |         |                       |  |   | 3,385                     |   |  |              | 796      |   |              |   |           |   |  |   | 4,181      |  
|Gain on sale of operating assets                                                                   |  |                                               |           |   |                  |   |         |                       |  |   | (4,546                    | ) |  |              | (324     | ) |              |   |           |   |  |   | (4,870     | )
|Loss on marketable securities                                                                      |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              | 59,842   |   |              |   |           |   |  |   | 59,842     |  
|Other  net                                                                                        |  |                                               | 3,018,903  |   |                  |   | 255,806  |                       |  |   | 277,256                   |   |  |              | 1,348    |   |              |   | (3,551,204 | ) |  |   | 2,109      |  
|Changes in operating assets and liabilities:                                                       |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Decrease in accounts receivable                                                                    |  |                                               |           |   |                  |   |         |                       |  |   | 27,842                    |   |  |              | 59,409   |   |              |   |           |   |  |   | 87,251     |  
|Increase (decrease) in accounts payable, accrued expenses and other liabilities                    |  |                                               |           |   |                  |   | 171      |                       |  |   | 5,236                     |   |  |              | (84,020  | ) |              |   |           |   |  |   | (78,613    | )
|Decrease in deferred income                                                                        |  |                                               |           |   |                  |   |         |                       |  |   | (11,550                   | ) |  |              | (36,885  | ) |              |   |           |   |  |   | (48,435    | )
|Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions |  |                                               | (2,094     | ) |                  |   | (494     | )                     |  |   | 6,081                     |   |  |              | 66,546   |   |              |   |           |   |  |   | 70,039     |  
|                                                                                                   |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Net cash provided by (used for) operating activities                                               |  |                                               | (1,925     | ) |                  |   | 209      |                       |  |   | 152,637                   |   |  |              | 121,381  |   |              |   |           |   |  |   | 272,302    |  
|Cash flows from investing activities:                                                              |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Purchases of property, plant and equipment                                                         |  |                                               |           |   |                  |   |         |                       |  |   | (74,925                   | ) |  |              | (84,288  | ) |              |   |           |   |  |   | (159,213   | )
|Proceeds from disposal of assets                                                                   |  |                                               |           |   |                  |   |         |                       |  |   | 2,143                     |   |  |              | 774      |   |              |   |           |   |  |   | 2,917      |  
|Acquisition of operating assets, net of cash acquired                                              |  |                                               |           |   |                  |   |         |                       |  |   | (8,337                    | ) |  |              | (3,340   | ) |              |   |           |   |  |   | (11,677    | )
|Equity contributions to subsidiaries                                                               |  |                                               |           |   |                  |   |         |                       |  |   | (1,798                    | ) |  |              |         |   |              |   | 1,798      |   |  |   |           |  
|Decrease (increase) in intercompany notes receivable  net                                         |  |                                               | 37,798     |   |                  |   |         |                       |  |   | (8,783                    | ) |  |              |         |   |              |   | (29,015    | ) |  |   |           |  
|Change in other  net                                                                              |  |                                               | 240        |   |                  |   |         |                       |  |   | 224                       |   |  |              | (25,203  | ) |              |   |           |   |  |   | (24,739    | )
|                                                                                                   |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Net cash provided by (used for) investing activities                                               |  |                                               | 38,038     |   |                  |   |         |                       |  |   | (91,476                   | ) |  |              | (112,057 | ) |              |   | (27,217    | ) |  |   | (192,712   | )
|Cash flows from financing activities:                                                              |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Draws on credit facilities                                                                         |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              | 30,000   |   |              |   |           |   |  |   | 30,000     |  
|Payments on credit facilities                                                                      |  |                                               |           |   |                  |   |         |                       |  |   | (526                      | ) |  |              | (134     | ) |              |   |           |   |  |   | (660       | )
|Proceeds from long-term debt                                                                       |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              | 25,020   |   |              |   |           |   |  |   | 25,020     |  
|Payments on long-term debt                                                                         |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              | (37,145  | ) |              |   |           |   |  |   | (37,145    | )
|Net transfers to Clear Channel Communications                                                      |  |                                               | (85,611    | ) |                  |   |         |                       |  |   |                          |   |  |              |         |   |              |   |           |   |  |   | (85,611    | )
|Intercompany funding                                                                               |  |                                               | 49,544     |   |                  |   | (209     | )                     |  |   | (55,673                   | ) |  |              | 6,338    |   |              |   |           |   |  |   |           |  
|Increase (decrease) in intercompany notes payable  net                                            |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              | (29,015  | ) |              |   | 29,015     |   |  |   |           |  
|Dividends declared and paid                                                                        |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              |         |   |              |   |           |   |  |   |           |  
|Equity contributions from parent                                                                   |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              | 1,798    |   |              |   | (1,798     | ) |  |   |           |  
|Change in other  net                                                                              |  |                                               | (46        | ) |                  |   |         |                       |  |   |                          |   |  |              |         |   |              |   |           |   |  |   | (46        | )
|                                                                                                   |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|Net cash provided by (used for) financing activities                                               |  |                                               | (36,113    | ) |                  |   | (209     | )                     |  |   | (56,199                   | ) |  |              | (3,138   | ) |              |   | 27,217     |   |  |   | (68,442    | )
|                                                                                                   |  |                                               |            |   |                  |  
|Effect of exchange rate changes on cash                                                            |  |                                               |           |   |                  |   |         |                       |  |   |                          |   |  |              | 10,539   |   |              |   |           |   |  |   | 10,539     |  
|                                                                                                   |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|                                                                                                   |  |                                               |            |   |                  |  
|Net increase in cash and cash equivalents                                                          |  |                                               |           |   |                  |   |         |                       |  |   | 4,962                     |   |  |              | 16,725   |   |              |   |           |   |  |   | 21,687     |  
|                                                                                                   |  |                                               |            |   |                  |  
|Cash and cash equivalents at beginning of period                                                   |  |                                               |           |   |                  |   |         |                       |  |   | (19,762                   | ) |  |              | 92,887   |   |              |   |           |   |  |   | 73,125     |  
|                                                                                                   |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  
|                                                                                                   |  |                                               |            |   |                  |  
|Cash and cash equivalents at end of period                                                         |  | $                                             |           |   |                  | $ |         |                       |  | $ | (14,800                   | ) |  | $            | 109,612  |   |              | $ |           |   |  | $ | 94,812     |  
|                                                                                                   |  |                                               |            |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |            |   |  |   |            |  



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CLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)



|                                                                                                   |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|-------------------------------------------------------------------------------------------------- |  | ------------------------------------------- | -------- | - | ---------------- | - | -------- | --------------------- |  | - | ------------------------- | - |  | ------------ | -------- | - | ------------ | - | -------- | - |  | - | -------- | -
|Pre-merger                                                                                         |  | Period from January 1 through July 30, 2008 |         
|(In thousands)                                                                                     |  | ParentCompany                               |          |   | SubsidiaryIssuer |   |          | GuarantorSubsidiaries |  |   | Non-GuarantorSubsidiaries |   |  | Eliminations |          |   | Consolidated |  
|Cash flows from operating activities:                                                              |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Consolidated net income (loss)                                                                     |  | $                                           | 167,554  |   |                  | $ | 102,261  |                       |  | $ | 165,284                   |   |  | $            | 106,280  |   |              | $ | (375,773 | ) |  | $ | 165,606  |  
|                                                                                                   |  |                                             |          |   |                  |  
|Reconciling items:                                                                                 |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Depreciation and amortization                                                                      |  |                                             |         |   |                  |   |         |                       |  |   | 109,619                   |   |  |              | 138,018  |   |              |   |         |   |  |   | 247,637  |  
|Deferred tax expense (benefit)                                                                     |  |                                             | 30       |   |                  |   |         |                       |  |   | 33,839                    |   |  |              | (12,464  | ) |              |   |         |   |  |   | 21,405   |  
|Provision for doubtful accounts                                                                    |  |                                             |         |   |                  |   |         |                       |  |   | 2,927                     |   |  |              | 5,661    |   |              |   |         |   |  |   | 8,588    |  
|Share-based compensation                                                                           |  |                                             |         |   |                  |   |         |                       |  |   | 5,135                     |   |  |              | 1,371    |   |              |   |         |   |  |   | 6,506    |  
|Gain on sale of operating assets                                                                   |  |                                             |         |   |                  |   |         |                       |  |   | (4,525                    | ) |  |              | (6,453   | ) |              |   |         |   |  |   | (10,978  | )
|Other  net                                                                                        |  |                                             | (165,284 | ) |                  |   | (101,170 | )                     |  |   | (109,198                  | ) |  |              | (70,963  | ) |              |   | 375,773  |   |  |   | (70,842  | )
|Changes in operating assets and liabilities:                                                       |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Decrease in accounts receivable                                                                    |  |                                             |         |   |                  |   |         |                       |  |   | 1,232                     |   |  |              | 5,876    |   |              |   |         |   |  |   | 7,108    |  
|Increase (decrease) in accounts payable, accrued expenses and other liabilities                    |  |                                             |         |   |                  |   | 78       |                       |  |   | (8,328                    | ) |  |              | (17,856  | ) |              |   |         |   |  |   | (26,106  | )
|Increase in deferred income                                                                        |  |                                             |         |   |                  |   |         |                       |  |   | 2,651                     |   |  |              | 30,567   |   |              |   |         |   |  |   | 33,218   |  
|Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions |  |                                             | (1,156   | ) |                  |   | 158      |                       |  |   | (21,136                   | ) |  |              | (28,686  | ) |              |   |         |   |  |   | (50,820  | )
|                                                                                                   |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Net cash provided by operating activities                                                          |  |                                             | 1,144    |   |                  |   | 1,327    |                       |  |   | 177,500                   |   |  |              | 151,351  |   |              |   |         |   |  |   | 331,322  |  
|Cash flows from investing activities:                                                              |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Purchases of property, plant and equipment                                                         |  |                                             |         |   |                  |   |         |                       |  |   | (75,917                   | ) |  |              | (123,205 | ) |              |   |         |   |  |   | (199,122 | )
|Proceeds from disposal of assets                                                                   |  |                                             |         |   |                  |   |         |                       |  |   | 5,097                     |   |  |              | 33,533   |   |              |   |         |   |  |   | 38,630   |  
|Acquisition of operating assets, net of cash acquired                                              |  |                                             |         |   |                  |   |         |                       |  |   | (46,773                   | ) |  |              | (38,048  | ) |              |   |         |   |  |   | (84,821  | )
|Equity contributions to subsidiaries                                                               |  |                                             |         |   |                  |   | (20      | )                     |  |   | (21                       | ) |  |              |         |   |              |   | 41       |   |  |   |         |  
|Decrease (increase) in intercompany notes receivable  net                                         |  |                                             | (37,798  | ) |                  |   |         |                       |  |   |                          |   |  |              | (22,898  | ) |              |   | 60,696   |   |  |   |         |  
|Dividends from subsidiaries                                                                        |  |                                             |         |   |                  |   | 19,390   |                       |  |   | 28,853                    |   |  |              |         |   |              |   | (48,243  | ) |  |   |         |  
|Change in other  net                                                                              |  |                                             | (848     | ) |                  |   |         |                       |  |   | (4,184                    | ) |  |              | 17,213   |   |              |   |         |   |  |   | 12,181   |  
|                                                                                                   |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Net cash provided by (used for) investing activities                                               |  |                                             | (38,646  | ) |                  |   | 19,370   |                       |  |   | (92,945                   | ) |  |              | (133,405 | ) |              |   | 12,494   |   |  |   | (233,132 | )
|Cash flows from financing activities:                                                              |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Draws on credit facilities                                                                         |  |                                             |         |   |                  |   |         |                       |  |   |                          |   |  |              | 72,150   |   |              |   |         |   |  |   | 72,150   |  
|Payments on credit facilities                                                                      |  |                                             |         |   |                  |   |         |                       |  |   | (2,642                    | ) |  |              | (155,132 | ) |              |   |         |   |  |   | (157,774 | )
|Proceeds from long-term debt                                                                       |  |                                             |         |   |                  |   |         |                       |  |   |                          |   |  |              | 5,476    |   |              |   |         |   |  |   | 5,476    |  
|Payments on long-term debt                                                                         |  |                                             |         |   |                  |   |         |                       |  |   |                          |   |  |              | (4,662   | ) |              |   |         |   |  |   | (4,662   | )
|Net transfers to Clear Channel Communications                                                      |  |                                             | (83,585  | ) |                  |   |         |                       |  |   |                          |   |  |              |         |   |              |   |         |   |  |   | (83,585  | )
|Intercompany funding                                                                               |  |                                             | 102,328  |   |                  |   | (1,327   | )                     |  |   | (103,867                  | ) |  |              | 2,866    |   |              |   |         |   |  |   |         |  
|Increase (decrease) in intercompany notes payable  net                                            |  |                                             | 14,762   |   |                  |   |         |                       |  |   | 8,136                     |   |  |              | 37,798   |   |              |   | (60,696  | ) |  |   |         |  
|Dividends declared and paid                                                                        |  |                                             |         |   |                  |   | (19,390  | )                     |  |   |                          |   |  |              | (28,853  | ) |              |   | 48,243   |   |  |   |         |  
|Equity contributions from parent                                                                   |  |                                             |         |   |                  |   | 20       |                       |  |   |                          |   |  |              | 21       |   |              |   | (41      | ) |  |   |         |  
|Change in other  net                                                                              |  |                                             | 3,997    |   |                  |   |         |                       |  |   |                          |   |  |              |         |   |              |   |         |   |  |   | 3,997    |  
|                                                                                                   |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|Net cash provided by (used for) financing activities                                               |  |                                             | 37,502   |   |                  |   | (20,697  | )                     |  |   | (98,373                   | ) |  |              | (70,336  | ) |              |   | (12,494  | ) |  |   | (164,398 | )
|                                                                                                   |  |                                             |          |   |                  |  
|Effect of exchange rate changes on cash                                                            |  |                                             |         |   |                  |   |         |                       |  |   |                          |   |  |              | 4,436    |   |              |   |         |   |  |   | 4,436    |  
|                                                                                                   |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|                                                                                                   |  |                                             |          |   |                  |  
|Net decrease in cash and cash equivalents                                                          |  |                                             |         |   |                  |   |         |                       |  |   | (13,818                   | ) |  |              | (47,954  | ) |              |   |         |   |  |   | (61,772  | )
|                                                                                                   |  |                                             |          |   |                  |  
|Cash and cash equivalents at beginning of period                                                   |  |                                             |         |   |                  |   |         |                       |  |   | (5,944                    | ) |  |              | 140,841  |   |              |   |         |   |  |   | 134,897  |  
|                                                                                                   |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  
|                                                                                                   |  |                                             |          |   |                  |  
|Cash and cash equivalents at end of period                                                         |  | $                                           |         |   |                  | $ |         |                       |  | $ | (19,762                   | ) |  | $            | 92,887   |   |              | $ |         |   |  | $ | 73,125   |  
|                                                                                                   |  |                                             |          |   |                  |   |          |                       |  |   |                           |   |  |              |          |   |              |   |          |   |  |   |          |  



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ITEM 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure

Not applicable

ITEM 9A. Controls and Procedures

Evaluation of
Disclosure Controls and Procedures

Under the supervision and with the participation of management, including our Chief Executive Officer
and our Chief Financial Officer, we have carried out an evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer
concluded that our disclosure controls and procedures were effective as of December 31, 2010 to ensure that information we are required to disclose in reports that are filed or submitted under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified by the SEC and is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required
disclosure.

Managements Report on Internal Control Over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Companys
internal control over financial reporting is a process designed under the supervision of the Companys Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and
preparation of the Companys financial statements for external purposes in accordance with generally accepted accounting principles.

As
of December 31, 2010, management assessed the effectiveness of the Companys internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control 
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, management determined that the Company maintained effective internal control over financial reporting as of
December 31, 2010, based on those criteria.

Ernst & Young LLP, the independent registered public accounting firm that audited
the consolidated financial statements of the Company included in this Annual Report on Form 10-K, has issued an attestation report on the effectiveness of the Companys internal control over financial reporting as of December 31, 2010. The
report, which expresses an unqualified opinion on the effectiveness of the Companys internal control over financial reporting as of December 31, 2010, is included in this Item under the heading Report of Independent Registered
Public Accounting Firm.

There were no changes in our internal control over financial reporting that occurred during the most recent
fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



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Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Clear
Channel Outdoor Holdings, Inc.

We have audited Clear Channel Outdoor Holdings, Inc.s (the Company) internal control over financial
reporting as of December 31, 2010, based on criteria established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Companys management is
responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Managements Report on Internal Control Over
Financial Reporting. Our responsibility is to express an opinion on the companys internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.

A companys internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations
of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companys assets that could have a material effect on the financial
statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31,
2010, based onthe COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), the consolidated balance sheets of the Company as of December 31, 2010 and 2009, and the related consolidated statements of operations, shareholders equity, and cash flows for the years ended December 31, 2010
and 2009, the period from July 31, 2008 through December 31, 2008, and the period from January 1, 2008 through July 30, 2008 and our report dated February 14, 2011 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

San Antonio, Texas

February 14, 2011



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ITEM 9B. Other Information

Not applicable



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PART III

ITEM 10. Directors, Executive Officers and Corporate Governance

The information required by this item with respect to our executive officers is set forth at the end of Part I of this Annual Report on Form 10-K.

We have adopted a Code of Business Conduct and Ethics (the Code) applicable to our directors and employees, including our
principal executive officer, principal financial officer, principal accounting officer and controller. The Code is publicly available on our internet website at www.clearchanneloutdoor.com. We intend to satisfy the disclosure requirements of
Item 5.05 of Form 8-K regarding any amendment to, or waiver from, a provision of the Code that applies to our principal executive officer, principal financial officer, principal accounting officer or controller and relates to any element of the
definition of code of ethics set forth in Item 406(b) of Regulation S-K by posting such information on our website, www.clearchanneloutdoor.com.

All other information required by this item is incorporated by reference to the information set forth in our Definitive Proxy Statement for our 2011 Annual Meeting of Stockholders (the Definitive
Proxy Statement), which we expect to file with the SEC within 120 days after our fiscal year end.

ITEM 11. Executive Compensation

The information required by this item is incorporated by reference to our Definitive Proxy Statement, which we expect to file with the SEC within 120 days after our fiscal year end.

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table summarizes information as of December 31, 2010 relating to the Companys equity compensation plan pursuant
to which grants of options, restricted stock or other rights to acquire shares may be granted from time to time.



|                                                           |  |                                                                                            |           |  |                                                                             |   |       |                                                                                                                                            |  |  |            | 
|---------------------------------------------------------- |  | ------------------------------------------------------------------------------------------ | --------- |  | --------------------------------------------------------------------------- | - | ----- | ------------------------------------------------------------------------------------------------------------------------------------------ |  |  | ---------- | 
|Plan category                                              |  | Number ofsecurities to beissued upon exerciseof outstandingoptions,
warrantsand rights (a) |           |  | Weighted-average exerciseprice ofoutstandingoptions, warrantsand rights
(b) |   |       | Number of securitiesremaining available forfuture issuance
underequity compensation plans(excluding securitiesreflected in column (a)) (c) | 
|Equity compensation plans approved bysecurity holders(1)   |  |                                                                                            | 9,221,300 |  |                                                                             | $ | 15.24 |                                                                                                                                            |  |  | 31,478,849 | 
|Equity compensation plans not approved by security holders |  |                                                                                            |          |  |                                                                             |   |      |                                                                                                                                            |  |  |           | 
|                                                           |  |                                                                                            |           |  |                                                                             |   |       |                                                                                                                                            |  |  |            | 
|Total                                                      |  |                                                                                            | 9,221,300 |  |                                                                             | $ | 15.24 |                                                                                                                                            |  |  | 31,478,849 | 



|(1) | Represents the Clear Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan.
|--- | ------------------------------------------------------------------------------

All other information required by this item is incorporated by reference to our Definitive Proxy Statement, which we expect to file with the SEC within 120 days after our fiscal year end.

ITEM 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item is incorporated by reference to our Definitive Proxy Statement, which we expect to file with the SEC within 120 days
after our fiscal year end.



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ITEM 14. Principal Accounting Fees and Services

The information required by this item is incorporated by reference to our Definitive Proxy Statement, which we expect to file with the SEC within 120 days
after our fiscal year end.



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PART IV



|ITEM 15. | Exhibits and Financial Statement Schedules
|-------- | ------------------------------------------

(a)1. Financial Statements.

The following
consolidated financial statements are included in Item 8:

Consolidated Balance Sheets as of December 31, 2010 and 2009.

Consolidated Statements of Operations for the Years Ended December 31, 2010, 2009 and 2008.

Consolidated Statements of Changes in Shareholders Equity for the Years Ended December 31, 2010, 2009 and 2008.

Consolidated Statements of Cash Flows for the Years Ended December 31, 2010, 2009 and 2008.

Notes to Consolidated Financial Statements.

(a)2. Financial Statement Schedule.

The
following financial statement schedule for the years ended December 31, 2010, 2009 and 2008 and related report of independent auditors is filed as part of this report and should be read in conjunction with the consolidated financial statements.

Schedule II Valuation and Qualifying Accounts

All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are in applicable, and
therefore have been omitted.



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SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

Allowance for Doubtful Accounts

(In thousands)

|                                              |  |                              |        |  |                                   |   |        |                               |  |   |          |  |  |                        |        |   |  |   |        | 
|--------------------------------------------- |  | ---------------------------- | ------ |  | --------------------------------- | - | ------ | ----------------------------- |  | - | -------- |  |  | ---------------------- | ------ | - |  | - | ------ | 
|Description                                   |  | Balance atBeginningof Period |        |  | Charges toCosts,Expensesand Other |   |        | Write-offofAccountsReceivable |  |   | Other(1) |  |  | Balance atEnd ofPeriod |       
|                                              |  |                              |        |  |                                  
|Period from
January 1 through July 30, 2008   |  | $                            | 29,741 |  |                                   | $ | 8,588  |                               |  | $ | 4,654    |  |  | $                      | 2,152  |   |  | $ | 35,827 | 
|                                              |  |                              |        |  |                                  
|Period from
July 31 through December 31, 2008 |  | $                            | 35,827 |  |                                   | $ | 24,268 |                               |  | $ | 8,155    |  |  | $                      | (3,340 | ) |  | $ | 48,600 | 
|                                              |  |                              |        |  |                                  
|Year ended
December 31, 2009                  |  | $                            | 48,600 |  |                                   | $ | 17,580 |                               |  | $ | 14,760   |  |  | $                      | (350   | ) |  | $ | 51,070 | 
|                                              |  |                              |        |  |                                  
|Year ended
December 31, 2010                  |  | $                            | 51,070 |  |                                   | $ | 8,773  |                               |  | $ | 11,373   |  |  | $                      | 562    |   |  | $ | 49,032 | 



|(1) | Primarily foreign currency adjustments.
|--- | ---------------------------------------

Deferred Tax Asset Valuation Allowance

(In
thousands)



|                             |  |                               |   |  |                                         |   |        |                         |  |   |        | 
|---------------------------- |  | ----------------------------- | - |  | --------------------------------------- | - | ------ | ----------------------- |  | - | ------ | 
|Description                  |  | Balance at beginningof period |   |  | Charges to costs,expenses and other (1) |   |        | Balance at end ofperiod | 
|Year ended December 31, 2010 |  | $                             |  |  |                                         | $ | 13,580 |                         |  | $ | 13,580 | 



|(1) | During 2010, the Company recorded a valuation allowance on certain capital allowance deferred tax assets due to the uncertainty of the ability to utilize those assets
in future periods.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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(a)3. Exhibits



|              |  |                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                                                        
|3.1           |  | Amended and Restated Certificate of Incorporation of Clear Channel Outdoor Holdings, Inc. (Incorporated by reference to Exhibit 3.1 to the Companys Annual Report on Form 10-K
for the year ended December 31, 2005).                                                                                                                                                                                             
|              | 
|3.2           |  | Amended and Restated Bylaws of Clear Channel Outdoor Holdings, Inc. as amended (Incorporated by reference to Exhibit 3.2 to the Companys Annual Report on Form 10-K for the
year ended December 31, 2007).                                                                                                                                                                                                        
|              | 
|4.1           |  | Form of Specimen Class A Common Stock certificate of Clear Channel Outdoor Holdings, Inc. (Incorporated by reference to Exhibit 4.1 to Amendment No. 4 to the Companys
Registration Statement on Form S-1 (File No. 333-127375) filed October 25, 2005).                                                                                                                                                          
|              | 
|4.2           |  | Indenture with respect to 9.25% Series A Senior Notes due 2017, dated as of December 23, 2009, by and among Clear Channel Worldwide Holdings, Inc., Clear Channel Outdoor Holdings,
Inc., Clear Channel Outdoor, Inc., U.S. Bank National Association and the guarantors party thereto (Incorporated by reference to Exhibit 4.3 to the Companys Annual Report on Form 10-K for the year ended December 31, 2009).
|              | 
|4.3           |  | Indenture with respect to 9.25% Series B Senior Notes due 2017, dated as of December 23, 2009, by and among Clear Channel Worldwide Holdings, Inc., Clear Channel Outdoor Holdings,
Inc., Clear Channel Outdoor, Inc., U.S. Bank National Association and the guarantors party thereto (Incorporated by reference to Exhibit 4.4 to the Companys Annual Report on Form 10-K for the year ended December 31, 2009).
|              | 
|10.1          |  | Master Agreement dated November 16, 2005 between Clear Channel Outdoor Holdings, Inc. and Clear Channel Communications, Inc. (Incorporated by reference to Exhibit 10.1 to the
Companys Annual Report on Form 10-K for the year ended December 31, 2005).                                                                                                                                                         
|              | 
|10.2          |  | Registration Rights Agreement dated November 16, 2005 between Clear Channel Outdoor Holdings, Inc. and Clear Channel Communications, Inc. (Incorporated by reference to Exhibit 10.2
to the Companys Annual Report on Form 10-K for the year ended December 31, 2005).                                                                                                                                            
|              | 
|10.3          |  | Corporate Services Agreement dated November 16, 2005 between Clear Channel Outdoor Holdings, Inc. and Clear Channel Management Services, L.P. (Incorporated by reference to Exhibit
10.3 to the Companys Annual Report on Form 10-K for the year ended December 31, 2005).                                                                                                                                        
|              | 
|10.4          |  | Tax Matters Agreement dated November 10, 2005 between Clear Channel Outdoor Holdings, Inc. and Clear Channel Communications, Inc. (Incorporated by reference to Exhibit 10.4 to the
Companys Annual Report on Form 10-K for the year ended December 31, 2005).                                                                                                                                                    
|              | 
|10.5          |  | Employee Matters Agreement dated November 10, 2005 between Clear Channel Outdoor Holdings, Inc. and Clear Channel Communications, Inc. (Incorporated by reference to Exhibit 10.5 to
the Companys Annual Report on Form 10-K for the year ended December 31, 2005).                                                                                                                                               



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|              |  |                                                                                                                                                                                                                                                                                                                                         
|------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                             
|10.6          |  | Amended and Restated License Agreement dated November 10, 2005 between Clear Channel Identity, L.P. and Outdoor Management Services, Inc. (Incorporated by reference to Exhibit 10.6
to the Companys Annual Report on Form 10-K for the year ended December 31, 2005).                                                                 
|              | 
|10.7          |  | Revolving Promissory Note dated November 10, 2005 payable by Clear Channel Outdoor Holdings, Inc. to Clear Channel Communications, Inc. in the original principal amount of
$1,000,000,000 (Incorporated by reference to Exhibit 10.7 to the Companys Annual Report on Form 10-K for the year ended December 31, 2005).                
|              | 
|10.8          |  | First Amendment, dated as of December 23, 2009, to the Revolving Promissory Note, dated as of November 10, 2005, by Clear Channel Outdoor Holdings, Inc., as Maker, to Clear Channel
Communications, Inc. (Incorporated by reference to Exhibit 10.25 to the Companys Annual Report on Form 10-K for the year ended December 31, 2009).
|              | 
|10.9          |  | Revolving Promissory Note dated November 10, 2005 payable by Clear Channel Communications, Inc. to Clear Channel Outdoor Holdings, Inc. in the original principal amount of
$1,000,000,000 (Incorporated by reference to Exhibit 10.8 to the Companys Annual Report on Form 10-K for the year ended December 31, 2005).                
|              | 
|10.10         |  | First Amendment, dated as of December 23, 2009, to the Revolving Promissory Note, dated as of November 10, 2005, by Clear Channel Communications, Inc., as Maker, to Clear Channel
Outdoor Holdings, Inc. (Incorporated by reference to Exhibit 10.24 to the Companys Annual Report on Form 10-K for the year ended December 31, 2009).
|              | 
|10.11         |  | Senior Unsecured Term Promissory Note dated August 2, 2005 in the original principal amount of $2.5 billion (Incorporated by reference to Exhibit 10.9 to Amendment No. 2 to the
Companys Registration Statement on Form S-1 (File No. 333-127375) filed September 26, 2005).                                                          
|              | 
|10.12         |  | First Amendment to Senior Unsecured Term Promissory Note dated October 7, 2005 (Incorporated by reference to Exhibit 10.10 to Amendment No. 3 to the Companys Registration
Statement on Form S-1 (File No. 333-127375) filed October 14, 2005).                                                                                        
|              | 
|10.13§        |  | Clear Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan, as amended and restated (Incorporated by reference to Exhibit 10.2 to the Companys Current Report on Form 8-K
filed April 30, 2007).                                                                                                                                   
|              | 
|10.14§        |  | First Form of Option Agreement under the Clear Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan (Incorporated by reference to Exhibit 10.2 to the Companys Registration
Statement on Form S-8 (File No. 333-130229) filed December 9, 2005).                                                                                   
|              | 
|10.15§        |  | Form of Restricted Stock Award Agreement under the Clear Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan (Incorporated by reference to Exhibit 10.3 to the Companys
Registration Statement on Form S-8 (File No. 333-130229) filed December 9, 2005).                                                                         
|              | 
|10.16*§       |  | Form of Restricted Stock Unit Award Agreement under the Clear Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan.                                                                                                                                                                                                                 
|              | 
|10.17§        |  | 2006 Annual Incentive Plan of Clear Channel Outdoor Holdings, Inc. (Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed April 30,
2007).                                                                                                                                                        
|              | 
|10.18§        |  | Relocation Policy - Chief Executive Officer and Direct Reports (Guaranteed Purchase Offer) (Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form
8-K filed October 21, 2010).                                                                                                                              



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|              |  |                                                                                                                                                                                                                                                                                                                          
|------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                              
|              | 
|10.19§        |  | Relocation Policy - Chief Executive Officer and Direct Reports (Buyer Value Option) (Incorporated by reference to Exhibit 10.2 to the Companys Current Report on Form 8-K filed
October 21, 2010).                                                                                                                      
|              | 
|10.20§        |  | Relocation Policy - Function Head Direct Reports (Incorporated by reference to Exhibit 10.3 to the Companys Current Report on Form 8-K filed October 21,
2010).                                                                                                                                                         
|              | 
|10.21§        |  | Form of Independent Director Indemnification Agreement (Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed June 3,
2010).                                                                                                                                                       
|              | 
|10.22§        |  | Form of Affiliate Director Indemnification Agreement (Incorporated by reference to Exhibit 10.2 to the Companys Current Report on Form 8-K filed June 3,
2010).                                                                                                                                                         
|              | 
|10.23§        |  | Contract of Employment between C. William Eccleshare and Clear Channel Outdoor Ltd dated August 31, 2009 (Incorporated by reference to Exhibit 10.23 to the Companys Annual
Report on Form 10-K for the year ended December 31, 2009).                                                                                  
|              | 
|10.24§        |  | Contract of Employment between Jonathan Bevan and Clear Channel Outdoor Ltd dated October 30, 2009 (Incorporated by reference to Exhibit 10.1 to the Companys Current Report on
Form 8-K filed December 11, 2009).                                                                                                      
|              | 
|10.25***§     |  | Employment Agreement, dated as of December 10, 2009, between Ronald Cooper and Clear Channel Outdoor, Inc.                                                                                                                                                                                                               
|              | 
|10.26§        |  | Employment Agreement, dated as of December 15, 2009, between Tom Casey and Clear Channel Communications, Inc. (Incorporated by reference to Exhibit 10.1 to the Companys
Current Report on Form 8-K filed January 5, 2010).                                                                                             
|              | 
|10.27§        |  | Employment Agreement, dated as of December 15, 2009, between Robert H. Walls, Jr., and Clear Channel Management Services, Inc. (Incorporated by reference to Exhibit 10.1 to the
Companys Current Report on Form 8-K filed January 5, 2010).                                                                            
|              | 
|10.28§        |  | Amended and Restated Employment Agreement, dated as of December 22, 2009, by and among Randall T. Mays, Clear Channel Communications, Inc. and CC Media Holdings, Inc. (Incorporated
by reference to Exhibit 10.39 to the CC Media Holdings, Inc. Annual Report on Form 10-K for the year ended December 31, 2009).      
|              | 
|10.29§        |  | Amended and Restated Employment Agreement, dated June 23, 2010, by and among Mark P. Mays, CC Media Holdings, Inc., and Clear Channel Communications, Inc., as successor to BT Triple
Crown Merger Co., Inc. (Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed June 24, 2010).
|              | 
|10.30§        |  | Employment Agreement, dated as of July 19, 2010, by and among Joseph Bagan, and Clear Channel Outdoor, Inc.  Americas. (Incorporated by reference to Exhibit 10.1 to the
Companys Quarterly Report on Form 10-Q for the quarter ended September 30, 2010).                                                             
|              | 
|10.31§        |  | Employment Separation Agreement, dated as of October 19, 2009, between Clear Channel Communications, Inc. and Herbert W. Hill (Incorporated by reference to Exhibit 10.12 to the
Companys Amendment to Form 10-Q filed November 13, 2009).                                                                              
|              | 
|10.32§        |  | Employment Separation Agreement, dated as of July 13, 2009, between Andrew W. Levin and CC Media Holdings, Inc. (Incorporated by reference to Exhibit 10.40 to the CC Media Holdings,
Inc. Annual Report on Form 10-K for the year ended December 31, 2009).                                                             
|              | 
|10.33*§       |  | Severance Agreement and General Release, dated as of October 22, 2010, between Clear Channel Outdoor Holdings, Inc., and David Clark.                                                                                                                                                                                    



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|              |  |                                                                                                                                                                         
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                             
|              | 
|10.34*§       |  | Form of Stock Option Agreement dated September 17, 2009 between C. William Eccleshare and Clear Channel Outdoor Holdings, Inc.                                          
|              | 
|10.35*§       |  | Form of Stock Option Agreement dated December 13, 2010 between C. William Eccleshare and Clear Channel Outdoor Holdings, Inc.                                           
|              | 
|10.36*§       |  | Form of Restricted Stock Unit Agreement dated December 20, 2010 between C. William Eccleshare and Clear Channel Outdoor Holdings, Inc.                                  
|              | 
|11*           |  | Statement re: Computation of Per Share Earnings (Loss).                                                                                                                 
|              | 
|21*           |  | Subsidiaries.                                                                                                                                                           
|              | 
|23*           |  | Consent of Ernst & Young LLP.                                                                                                                                           
|              | 
|24*           |  | Power of Attorney (included on signature page).                                                                                                                         
|              | 
|31.1*         |  | Certification Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|              | 
|31.2*         |  | Certification Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|              | 
|32.1**        |  | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                      
|              | 
|32.2**        |  | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                      



|* | Filed herewith.
|- | ---------------

|** | This exhibit is furnished herewith and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise
subject to the liability of that section, and shall not be deemed to be 6 by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*** | Previously filed and being re-filed herewith.
|--- | ---------------------------------------------

|§ | Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 601 of Regulation S-K.
|- | ----------------------------------------------------------------------------------------------------------------------------------



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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1034, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, on February 14, 2011.



CLEAR CHANNEL OUTDOOR HOLDINGS, INC.By:

/s/ Mark P. MaysMark P. MaysChief Executive Officer


Power of
Attorney

Each person whose signature appears below authorizes Mark P. Mays, Thomas W. Casey and Scott D. Hamilton, or any
one of them, each of whom may act without joinder of the others, to execute in the name of each such person who is then an officer or director of the Registrant and to file any amendments to this Annual Report on Form 10-K necessary or
advisable to enable the Registrant to comply with the Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission in respect thereof, which amendments may make such
changes in such report as such attorney-in-fact may deem appropriate.

Pursuant to the requirements of the Securities Exchange
Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.



|                                          |  |                                                                                           |  |                  
|----------------------------------------- |  | ----------------------------------------------------------------------------------------- |  | -----------------
|Name                                      |  | Title                                                                                     |  | Date             
|                                          |  |                                                                                          
|/s/ Mark P. Mays Mark P.
Mays             |  | Chairman of the Board, Chief Executive Officer and Director (Principal Executive Officer) |  | February 14, 2011
|                                          |  |                                                                                          
|/s/ Thomas W. Casey Thomas W.
Casey       |  | Executive Vice President and Chief Financial Officer (Principal Financial Officer)        |  | February 14, 2011
|                                          |  |                                                                                          
|/s/ Scott D. Hamilton Scott D.
Hamilton   |  | Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)         |  | February 14, 2011
|                                          |  |                                                                                          
|/s/ Randall T. Mays Randall T.
Mays       |  | Director                                                                                  |  | February 14, 2011
|                                          |  |                                                                                          
|/s/ Margaret W. Covell
Margaret W. Covell |  | Director                                                                                  |  | February 14, 2011
|                                          |  |                                                                                          
|/s/ Blair E. Hendrix Blair E.
Hendrix     |  | Director                                                                                  |  | February 14, 2011
|                                          |  |                                                                                          
|/s/ Douglas L. Jacobs Douglas
L. Jacobs   |  | Director                                                                                  |  | February 14, 2011
|                                          |  |                                                                                          
|/s/ Daniel G. Jones Daniel G.
Jones       |  | Director                                                                                  |  | February 14, 2011



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|                                                  |  |          |  |                  
|------------------------------------------------- |  | -------- |  | -----------------
|Name                                              |  | Title    |  | Date             
|                                                  |  |         
|/s/ Marsha McCombs Shields Marsha McCombs Shields |  | Director |  | February 14, 2011
|                                                  |  |         
|/s/ Dale W. Tremblay Dale W. Tremblay             |  | Director |  | February 14, 2011
|                                                  |  |         
|/s/ Scott R. Wells Scott R. Wells                 |  | Director |  | February 14, 2011



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