U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended      May 31, 2003
                              ------------------------------------

       [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT

 For the transition period from ___________________TO________________________

                        Commission File Number 000-21623

                             OBIE MEDIA CORPORATION
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

         OREGON                                             93-0966515
--------------------------------------------------------------------------------
(State or other jurisdiction of                           (IRS Employer
incorporation or organization)                          Identification No.)


4211 West 11th Ave., Eugene, Oregon                  97402
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

         541-686-8400                                    FAX 541-345-4339
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

Indicate by check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or 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 [ ].

     As of July 1, 2003, 5,908,577 shares of the issuer's common stock were
outstanding.
















<PAGE>
                             OBIE MEDIA CORPORATION
                                    FORM 10-Q
                                      INDEX


<TABLE>
<CAPTION>
PART I- FINANCIAL INFORMATION                                                           PAGE
-----------------------------                                                           ----

ITEM 1.  Financial Statements

<S>                                                                                      <C>
         Consolidated Balance Sheets as of May 31, 2003 and November 30, 2002              2

         Consolidated Statements of Operations for the three month and six month
                  periods ended May 31, 2003 and 2002                                      3

         Consolidated Statements of Cash Flows for the six months
                  ended May 31, 2003 and 2002                                              4

         Notes to Financial Statements                                                     5

ITEM 2.  Management's Discussion and Analysis of Financial Condition and
                  Results of Operations                                                   11

ITEM 3.  Quantitative and Qualitative Disclosures about Market Risk                       19

ITEM 4.   Controls and Procedures                                                         19


PART II - OTHER INFORMATION
---------------------------

ITEM 4.  Submission of Matters to Vote of Security Holders                                20

ITEM 6.  Exhibits and Reports on Form 8-K                                                 20

         Certifications                                                                   21
</TABLE>


















                                       1
<PAGE>
ITEM 1.  FINANCIAL STATEMENTS

                             OBIE MEDIA CORPORATION
                           Consolidated Balance Sheets

                                     ASSETS
<TABLE>
<CAPTION>
                                                                                        May 31,          November 30,
                                                                                          2003               2002
                                                                                      (Unaudited)
                                                                                   ------------------  ----------------
CURRENT ASSETS:
<S>                                                                                         <C>             <C>
    Cash                                                                                    $468,182        $1,815,886

    Accounts receivable, net                                                               5,517,215         7,327,681
    Prepaids and other current assets                                                      5,958,787         4,990,859
    Deferred income taxes                                                                  1,743,432         1,732,395
                                                                                   ------------------  ----------------
        Total current assets                                                              13,687,616        15,866,821

Property and equipment, net                                                               15,371,017        15,864,193
Goodwill, net                                                                              5,448,552         5,448,552
Other assets                                                                                 874,931           947,322
                                                                                   ------------------  ----------------
                                                                                         $35,382,116       $38,126,888
                                                                                   ==================  ================

                     LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Current portion of long-term debt                                                  $ 15,509,881       $ 2,847,311
    Working capital revolver                                                              3,380,483         2,980,483
    Accounts payable                                                                        307,096           283,075
    Accrued transit fees                                                                    471,498         1,102,519
    Accrued expenses                                                                        820,645           737,698
    Income taxes payable                                                                    146,372                 -
    Unearned revenue                                                                        733,549           767,637
                                                                                    ----------------  ----------------
        Total current liabilities                                                        21,369,524         8,718,723

Deferred income taxes                                                                     1,588,582         1,573,729
Long-term debt, less current portion                                                      3,866,510        17,707,306
                                                                                    ----------------  ----------------
       Total liabilities                                                                 26,824,616        27,999,758
                                                                                    ----------------  ----------------
Shareholders' equity:
    Preferred stock, without par value, 10,000,000 shares
        authorized, no shares issued or outstanding
    Common stock, without par value; 20,000,000 shares
        Authorized, 5,908,577 shares issued and outstanding                              17,272,128        17,272,128
    Other comprehensive income (loss)                                                      (60,272)             5,350
    Accumulated deficit                                                                 (8,654,356)       (7,150,348)
                                                                                    ----------------  ----------------
        Total shareholders' equity                                                        8,557,500        10,127,130
                                                                                    ----------------  ----------------
                                                                                        $35,382,116       $38,126,888
                                                                                    ----------------  ----------------
</TABLE>
                             See accompanying notes
                                       2
<PAGE>
                             OBIE MEDIA CORPORATION
                      Consolidated Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                             Three Months Ended May             Six Months Ended May
                                                         ------------------------------------------------------------------
                                                              2003            2002              2003             2002
                                                         ---------------- --------------   ---------------  ---------------

REVENUES:
<S>                                                          <C>             <C>              <C>              <C>
  Transit advertising                                        $ 9,053,680     $9,159,873       $16,076,911      $17,053,485
  Outdoor advertising                                          1,581,634      1,790,263         3,255,963        3,462,941
                                                         ---------------- --------------   ---------------  ---------------
      Net revenue                                             10,635,314     10,950,136        19,332,874       20,516,426

OPERATING EXPENSES:
  Production and installation                                  1,559,641      1,516,543         2,921,725        3,123,291
  Transit and outdoor occupancy                                4,546,695      4,533,657         8,170,787        8,435,140
  Selling                                                      2,029,521      2,305,936         3,825,040        4,760,744
  General and administrative                                   1,686,656      1,923,253         3,519,596        3,894,973
  Depreciation and amortization                                  449,992        547,509           918,944        1,094,886
                                                         ---------------- --------------   ---------------  ---------------
             Total operating expenses                         10,272,505     10,826,898        19,356,092       21,309,034
                                                         ---------------- --------------   ---------------  ---------------

      Operating income (loss)                                    362,809        123,238           (23,218)        (792,608)

OTHER (INCOME) EXPENSE:
  Interest expense                                               583,760        316,148         1,127,758          632,043
                                                         -------------------------------   ---------------  ---------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
    BEFORE INCOME TAXES                                         (220,951)      (192,910)       (1,150,976)      (1,424,651)

PROVISION FOR INCOME TAXES                                       134,531                          134,531
                                                         ---------------- --------------   ---------------  ---------------

INCOME (LOSS) FROM CONTINUING OPERATIONS
    BEFORE INCOME TAXES                                         (355,482)      (192,910)       (1,285,507)      (1,424,651)

DISCONTINUED OPERATIONS, NET OF INCOME TAXES                    (105,914)      (328,638)         (218,501)        (617,858)
                                                         ---------------- --------------   ---------------  ---------------

          NET INCOME (LOSS)                                    $(461,396)    $ (521,548)      $(1,504,008)     $(2,042,509)
                                                         ================ ==============   ===============  ===============

Earnings (loss) per share:
    Basic and diluted, from continuing operations                $ (0.06)       $ (0.03)          $ (0.21)         $ (0.24)
    Basic and diluted, discontinued operations                   $ (0.02)       $ (0.06)          $ (0.04)         $ (0.10)
    Basic and diluted, on net income (loss)                      $ (0.08)       $ (0.09)          $ (0.25)         $ (0.34)
</TABLE>



                             See accompanying notes
                                       3
<PAGE>

                             OBIE MEDIA CORPORATION
                      Consolidated Statement of Cash Flows
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                      Six Months Ended May,
                                                                                      -----------------------------
                                                                                         2003               2002
                                                                                    ----------------  ----------------
Cash Flows From Operating Activities:
<S>                                                                                    <C>               <C>
    Net loss                                                                           ($1,504,008)      $(2,042,509)
    Adjustments to reconcile net loss to net cash
        used in operating activities:
          Depreciation and amortization                                                     843,885         1,094,886
          Changes in assets and liabilities:
              (Increase) decrease in:
                  Accounts receivable                                                     1,810,466         3,257,304
                  Prepaid and other assets                                                 (906,574)          989,675
              Increase (decrease) in:
                  Accounts payable                                                           24,021         (629,330)
                  Other liabilities                                                        (420,938)      (2,785,058)
                                                                                    ----------------  ----------------
             Net cash used in operating activities                                         (153,148)        (115,032)
                                                                                    ----------------  ----------------

Cash Flows From Investing Activities:
    Capital expenditures                                                                  (350,709)         (633,288)
                                                                                    ----------------  ----------------
            Net cash used in investing activities                                         (350,709)         (633,288)
                                                                                    ----------------  ----------------

Cash Flows From Financing Activities:
    Net borrowing on line of credit                                                        494,287          1,590,548
    Borrowings of long-term debt                                                                 -          1,300,000
    Payments on long-term debt                                                          (1,272,512)          (129,800)
                                                                                    ----------------  ----------------
            Net cash (used in) provided by financing activities                           (778,225)         2,760,748
                                                                                    ----------------  ----------------

Effect of exchange rate changes on cash                                                    (65,622)            (5,993)
                                                                                    ----------------  ----------------
Net (decrease) increase in cash                                                         (1,347,704)         2,006,435
Cash, beginning of period                                                                1,815,886            404,473
                                                                                    ----------------  ----------------
Cash, end of period                                                                       $468,182         $2,410,908
                                                                                    ================  ================
</TABLE>







                             See accompanying notes
                                       4
<PAGE>
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.   BASIS OF PRESENTATION

         The interim financial statements have been prepared by Obie Media
Corporation ("Obie", "Obie Media" or the "Company") without audit. In the
opinion of management, the accompanying unaudited financial statements contain
all adjustments necessary to present fairly the financial position of the
Company as of May 31, 2003 and 2002, and the results of operations and cash
flows of the Company for the six months ended May 31, 2003 and 2002, as
applicable. The condensed consolidated financial statements include the accounts
of the Company and its subsidiaries, and all significant intercompany accounts
and transactions have been eliminated in consolidation.

         Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted as permitted by rules and regulations
of the Securities and Exchange Commission. The organization and business of the
Company, accounting policies followed by the Company and other information are
contained in the notes to the Company's financial statements filed as part of
the Company's November 30, 2002 Form 10-K. This quarterly report should be read
in conjunction with such annual report.

2.   CONTRACT TERMINATION

         On December 5, 2001 the Company received notice from the Chicago
Transit Authority (CTA) that it was terminating the Company's transit
advertising agreement effective as of that date. The Company and the CTA had
been disputing settlement of 2001 transit fees in light of the nature of the
early termination and a shortage of advertising space made available to the
Company, and the parties entered into an agreement effective May 28, 2002
resolving all of the outstanding issues.

         The agreed upon fee for the 2001 contract year has been settled at $17
million, substantially less than the original contracted guaranteed payment of
$21.8 million. As of May 31, 2002, approximately $7.5 million had been paid to
the CTA, and an additional $1.5 million was paid on June 1, 2002. The balance is
payable in substantially equal monthly payments of $116,080 beginning June 1,
2002 and ending May 1, 2007, with an additional $1.0 million balloon payment due
January 1, 2004. The monthly payments are without interest through May 2003, and
include a 5% interest charge thereafter. These periodic deferred payments have
been valued using a junior unsecured discount rate of 15%, resulting in a
present value of approximately $5.6 million as of May 31, 2003.

3.   DEBT AGREEMENTS

         The Company's credit arrangements with U.S. Bank include a $13.8
million term loan revolver and a $4.5 million working capital revolver, both
maturing on December 15, 2003, and are collateralized by substantially all of
the assets of the Company. The term loan revolver limits decrease quarterly
through the maturity date. The interest rates are at U.S. Bank's prime rate plus
3.75% for the term revolver and prime rate plus 3.25% for the working capital
revolver. At May 31, 2003 the effective rates were 8.0% and 7.5% for the term
loan and working capital revolvers respectively. Amount outstanding under the
term revolver was $13,500,000 and $3,380,483 under the working capital revolver
at May 31, 2003. Because the Company's debt agreements expire in December 2003,
all of the outstanding debt has been classified as current. The Company expects
to replace these credit arrangements with alternate arrangements which will
contain terms and conditions typical for the media industry. Discussions with
other lenders are in process.
                                       5
<PAGE>
         The U.S. Bank loan agreements contain certain restrictive covenants and
required ratios. These include Fixed Charge Coverage, Interest Coverage and
Leverage ratios and a minimum EBITA level covenant, all of which are measured
quarterly. On February 25, 2003 U.S. Bank and Obie agreed to a revised credit
facility which included a reduction in the working capital line of credit to
$4.5 million, modifications of the above mentioned financial ratios and
covenants, and a reduction of principal payment requirements for fiscal 2003.
$1.1 million was available under the working capital line of credit as of May
31, 2003. The revised agreement extends the term of the credit facility through
December 15, 2003, when both the term revolver and working capital credit line
expire. As of May 31, 2003, the Company was in compliance with the revised
covenants.

         The Company has an arrangement with Travelers Casualty & Surety Company
of America ("Travelers"), to bond the CTA settlement as well as to provide other
bonds required by the Company. The Company and Travelers have entered into a
security agreement whereby Travelers maintains a second secured position on
certain of the Company's assets, subordinate to the security arrangements with
US Bank or any other replacement primary lender.

4.   ACCOUNTING FOR GOODWILL

         In accordance with SFAS No. 142, goodwill amortization was discontinued
as of November 30, 2002. We continued our impairment analysis during the quarter
ended May 31, 2003 and found no instances of impairment. Goodwill at May 31,
2003 and November 30, 2002 amounted to $5,448,552, net of accumulated
amortization of $2,181,571. Summarized below are the effects on our net loss and
per share data if we had followed the amortization provisions of SFAS No. 142:

<TABLE>
<CAPTION>
                                                                            For the six months ended May 31,
                                                                            2003                       2002
                                                                       ----------------          ----------------
<S>                                                                       <C>                       <C>
         Reported net loss                                                ($1,504,008)              ($2,042,509)
         Addback goodwill amortization                                              -                   251,190
                                                                       ----------------          ----------------
         Adjust net loss                                                  ($1,504,008)              ($1,791,319)
                                                                       ================          ================

         Basic and diluted loss per share:
         Reported net loss                                                     ($0.25)                   ($0.34)
         Goodwill amortization                                                      -                      0.04
                                                                       ----------------          ----------------
         Adjusted net loss                                                     ($0.25)                   ($0.30)
                                                                       ================          ================
</TABLE>

5.   INCOME TAXES

         The provision for (benefit from) income taxes for the six months ended
May 31, 2003 and 2002 differs from the amounts computed by applying the U.S.
federal income tax rate of 34 percent to pretax income as follows:


                                       6
<PAGE>
<TABLE>
<CAPTION>
                                                                         Six Months ended May 31,
                                                                       2003                2002
                                                                       ------------------------
<S>                                                                    <C>               <C>
          Statutory federal income tax rate                            (34.0%)           (34.0%)
          Increase in income taxes resulting from:
                   State and local taxes, net of federal benefit       ( 3.6%)           ( 3.6%)
                   Net operating loss valuation allowance               37.6%             37.6%
                   Foreign income taxes                                 11.7%
                                                                       -------------------------
                   Actual income tax rate                               11.7%               0.0%
                                                                       -------------------------
</TABLE>

6.   EARNINGS PER SHARE

         Basic earnings per share (EPS) is calculated using the weighted average
number of common shares outstanding for the period and diluted EPS is calculated
using the weighted average number of common shares and dilutive common
equivalent shares outstanding. The following is a reconciliation of the basic
and diluted shares used in the per share calculation:

                                                Six  Months Ended May 31
                                         ---------------------------------------
                                             2003                       2002
                                         ------------               ------------
Basic shares (weighted average)            5,908,577                  5,908,577
Dilutive effect of stock options                   -                          -
                                         ------------               ------------
Diluted shares                             5,908,577                  5,908,577
                                         ------------               ------------

         At May 31, 2003 and 2002 the Company had options outstanding covering
670,181 and 713,982 shares respectively of the Company's common stock that were
not considered in the dilutive EPS since they would have been antidilutive for
the six months ended May 31, 2003 and 2002. For the three and six months ended
May 31, 2003 and 2002 the exercise prices of the outstanding options were
greater than the market price of the common shares and therefore were not
considered in dilutive EPS.

7.   COMPREHENSIVE INCOME

         In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130 "Reporting Comprehensive Income" (SFAS
No. 130). This statement establishes standards for reporting and displaying
comprehensive income and its components in a full set of general-purpose
financial statements. The objective of SFAS No. 130 is to report a measure of
all changes in equity of an enterprise that result from transactions and other
economic events of the period other than transactions with owners. Comprehensive
income did not materially differ from reported net loss for the six month
periods ended May 31, 2003 and 2002.





                                       7
<PAGE>
8.   DISCONTINUED OPERATIONS

         Effective during its fiscal year ending November 30, 2002, the Company
adopted Statements of Financial Accounting Standards No. 144 "Accounting for the
Impairment of Long-Lived Assets" (SFAS 144) and No. 146 "Accounting for Costs
Associated with Exit or Disposal Activities" (SFAS 146).

         Pursuant to these pronouncements, the Company has classified as
"Discontinued Operations" the results of operations and any exit costs
associated with transit agreements that were economically not viable, and where
the Company plans to or has already either exited the market or intends not to
be a competitive participant in new contract awards for expiring agreements.
Accordingly, the Company exited these markets and has no ongoing advertising
operations. These operations qualify as components of an entity with separate
financial reporting as described in SFAS No. 44. The assets associated with the
discontinued markets are, in the aggregate, not material. The U.S. transit
districts included in Discontinued Operations are: Chicago, San Antonio,
Cincinnati, Kitsap, Santa Cruz and Bridgeport. The Canadian transit districts
included are: Pickering, Whitby, Cambridge and St. Catharines. The Chicago (see
Note 2 above), Pickering, Whitby, Cambridge and St. Catharines contracts were
terminated during fiscal year 2002; the contract in San Antonio was terminated
in December 2002. The Company did not aggressively participate in new contract
awards in Cincinnati, Kitsap, Santa Cruz or Bridgeport, which contracts expired
either during fiscal 2002 or early in Fiscal 2003. The results of operations for
these transit districts for 2002 have been reclassified to Discontinued
Operations for comparability purposes.

         Net revenues and the components of the net loss related to the
discontinued operations were as follows:
<TABLE>
<CAPTION>

                                                          Six  months ended May 31,
                                                          2003               2002
                                                     --------------    ---------------
<S>                                                    <C>               <C>
Net revenues                                           $   247,817       $    942,028

Production and Installation Expenses                       (49,122)          (251,566)
Occupancy Expense                                         (139,701)          (648,962)
Sales Expense                                              (52,654)         (480,510)
General and administrative Expense                        (224,841)          (178,848)
                                                     --------------    ---------------
Income (loss) from discontinued operations
   before income taxes                                    (218,501)          (617,858)
Income tax benefit                                               -
                                                     --------------    ---------------
Net loss from discontinued operations                  $  (218,501)       $  (617,858)
                                                     ==============    ===============
</TABLE>








                                       8
<PAGE>
9.   STOCK OPTIONS

STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS NO. 123 AND NO. 148

         During 1995, the Financial Accounting Standards Board issued SFAS No.
123, which defines a fair value based method of accounting for employee stock
options and similar equity instruments and encourages all entities to adopt that
method of accounting for all their employee stock compensation plans. However,
it allows an entity to continue to measure compensation cost for those plans
using the method of accounting prescribed by APB No. 25. Entities electing to
continue to use the accounting treatment in APB No. 25 must make pro forma
disclosures of net income and, if presented, earnings per share, as if the fair
value based method of accounting defined in SFAS No. 123 had been adopted.

         The Company adopted the applicable provisions of SFAS No. 148 effective
March 1, 2003. SFAS No. 148, among other things, extends the pro forma
disclosures required by APB No. 25 to interim periods beginning after December
15, 2002. Accordingly the Company has included the information following
regarding its employee stock option plan.

         The Company has elected to account for its stock-based compensation
plans under APB No. 25; however, the Company has computed, for pro forma
disclosure purposes the value of all options granted during the three and six
month periods ended May 31, 2003 and 2002 using the Black-Scholes option pricing
model as prescribed by SFAS No. 123 using the following weighted average
assumptions for grants for all periods presented:

                  Risk-free interest rate            4.9%
                  Expected dividend yield              0%
                  Expected lives                   6 years
                  Expected volatility               81.48%

         Using the Black-Scholes methodology, the total value of options granted
during the three month and six month periods ending May 31, 2003 and May 31,
2002 is as follows:

      Three Months Ended May 31,               Six Months Ended May 31,
      2003                  2002              2003                  2002
     ----------------------------            ----------------------------
       $ 0               $67,664              $5,000            $263,540

         These amounts would be amortized on a pro forma basis over the vesting
period of the options (typically five years). The weighted average per share
value of options granted during the three months ended May 31, 2002 and six
months ended May 31, 2002 and 2003 was $2.33, $2.28 and $1.74 respectively.

         If the Company had accounted for its stock-based compensation plans in
accordance with SFAS No. 123, the Company's net loss and net loss per share
would approximate the pro forma disclosures below:

                                       Three Months Ended May 31,
                                   2003                          2002
                          ------------------------------------------------------
                          As                             As
                          Reported      Pro Forma        Reported      Pro Forma

Net loss                  $461,396       $541,169        $521,548       $635,912
Basic net loss
   per share                  $.08           $.09            $.09           $.11
Diluted net loss per share    $.08           $.09            $.09           $.11

                                       9
<PAGE>
                                        Six Months Ended May 31,
                                   2003                          2002
                          ------------------------------------------------------
                          As                             As
                          Reported      Pro Forma        Reported      Pro Forma

Net loss                $1,504,008     $1,663,554      $2,042,509     $2,289,721
Basic net loss
   per share                  $.25           $.28            $.34           $.39
Diluted net loss per share    $.25           $.28            $.34           $.39

10.  NEW ACCOUNTING PRONOUNCEMENTS

         On October 3, 2001, the FASB issued Statement of Financial Accounting
Standards No. 144 ("SFAS No. 144"), "Accounting for the Impairment or Disposal
of Long-Lived Assets". SFAS No. 144 supercedes Statement of Financial Accounting
Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of-". SFAS No. 144 applies to all long-lived
assets (including discontinued operations) and consequently amends Accounting
Principles Board Opinion No. 30, "Reporting Results of Operations -- Reporting
the Effects of Disposal of a Segment of a Business". SFAS No. 144 develops one
accounting model for long-lived assets that are to be disposed of by sale. SFAS
No. 144 requires that long-lived assets that are to be disposed of by sale be
measured at the lower of book value or fair value less the cost to sell. SFAS
No. 144 is effective for fiscal years beginning after December 15, 2001,
however, earlier adoption is permitted. The Company early adopted the provisions
of SFAS No. 144 in Fiscal 2002 and has recorded the results of operations from
transit markets that it has exited as discontinued operations.


         On June 28, 2002, the FASB adopted Statement of Financial Accounting
Standards No. 146 ("SFAS No. 146"), "Accounting for Exit or Disposal
Activities-", effective for exit or disposal activities that are initiated after
December 31, 2002, with early application encouraged. SFAS No. 46 addresses
significant issues regarding the recognition, measurement, and reporting of
costs that are associated with exit and disposal activities, including
restructuring activities that are currently accounted for pursuant to the
guidance that the Emerging Issues Task Force ("EITF") has set forth in EITF
Issue No. 94-3, "Liability Recognition for Certain Employee Termination Benefits
and Other Costs to Exit an Activity (including Certain Costs Incurred in a
Restructuring)-". The Company early adopted the provisions of SFAS No. 146 in
Fiscal 2002 and has recorded exit costs relating to contract terminations
resulting from its exit of certain transit markets in accordance with the
provisions of SFAS No. 146. These costs have been recorded as a component of
discontinued operations in accordance with SFAS No. 144.

11.  RECLASSIFICATIONS

         Certain amounts previously reported in the Company's financial
statements as of May 31, 2002 have been reclassified to conform to the current
fiscal year presentation.




                                       10
<PAGE>
ITEM 2.  MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

         The following discussion includes certain forward-looking statements
that involve a number of risks and uncertainties. Obie's actual results could
differ materially from the forward-looking statements. Factors that could cause
or contribute to such differences include: failure to conclude favorable
negotiations on pending transactions with existing transit agency partners or to
successfully assimilate expanded operations; potential impairments of liquidity
or capital resources; inability to generate sufficient advertising revenues to
meet contractual guarantees; inability to renew existing lending arrangements as
they expire; potential for cancellation or interruption of contracts with
governmental agencies; a further decline in the demand for advertising in the
areas where we conduct our business, or a deterioration of business conditions
generally in those areas; slower than expected acceptance of our innovative
display products; competitive factors, including increased competition and price
pressures; changes in the seasonality of our business; and changes in regulatory
or other external factors; as well as those factors listed from time to time in
Obie's SEC reports, including, but not limited to, the factors discussed in this
quarterly report. You should recognize that these forward-looking statements,
which speak only as of the date of this quarterly report, reflect management's
expectations based on information available as of that date; you should not
construe our forward-looking statements as assurances of future performance. We
do not intend to update our forward-looking statements except as required by
law.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

         Our discussion and analysis of our financial condition and results of
operations following are based upon our consolidated financial statements, which
have been prepared in accordance with accounting principles generally accepted
in the United States of America. The preparation of these financial statements
requires us to make estimates and judgements that affect the reported amounts of
assets, liabilities, revenues and expenses, and related disclosure of contingent
assets and liabilities.

         We believe that the estimates, assumptions and judgements involved in
the accounting policies described below have the greatest potential impact on
our financial statements, so we consider these to be our critical accounting
policies. Because of the uncertainty inherent in these matters, actual results
could differ from the estimates we use in applying the critical accounting
policies. Certain of these critical accounting policies affect working capital
account balances, including the reserve for uncollectible accounts receivable
and deferred income taxes. These policies require that we make estimates in the
preparation of our financial statements as of a given date. However, since our
business cycle is relatively short, actual results related to the estimates
relative to uncollectible accounts receivable are generally known within the six
month period following the financial statement date. Thus, these policies
generally affect only the timing of reported amounts across two to three
quarters. The estimate of deferred tax assets may affect reported amounts beyond
that time period.

         Within the context of these critical accounting policies, we are not
currently aware of any reasonably likely events or circumstances which would
result in materially different amounts being reported.

RECOGNITION OF REVENUE

         Revenue from advertising contracts is recognized ratably over the
contract term, and the estimated cost components of a contract (cost of the
advertising space and the costs of producing and installing advertising copy)
are deferred and matched against the periodic recognition of revenue on
essentially a straight-line basis. This method also necessitates the recognition
of an unearned revenue liability for billings to customers for time periods
beyond the end of the current accounting cycle.

                                       11
<PAGE>
DISCONTINUED OPERATIONS

         Effective during its fiscal year ending November 30, 2002, the Company
adopted Statements of Financial Accounting Standards No. 144 "Accounting for the
Impairment of Long-Lived Assets" (SFAS No. 144) and No. 146 "Accounting for
Costs Associated with Exit or Disposal Activities" (SFAS No. 146).

         Pursuant to these pronouncements, the Company has classified as "
Discontinued Operations" the results of operations and any exit costs associated
with transit district contracts that were targeted for exit. As a result the
Company has no further involvement with these markets. The U.S. transit
districts included in Discontinued Operations are: Chicago, San Antonio,
Cincinnati, Kitsap, Santa Cruz and Bridgeport. The Canadian transit districts
included are: Pickering, Whitby, Cambridge and St. Catharines. Results of
operations for these transit districts for 2002 have been reclassified to
Discontinued Operations for comparability purposes.

RESERVE FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE

         We make ongoing estimates relating to the collectiblity of our accounts
receivable and maintain a reserve for estimated losses resulting from the
inability of our customers to make required payments. In determining the amount
of the reserve, we consider our historical level of credit losses, the aging
spread of accounts at the date the estimate is made, trends in the overall media
economy, and general business conditions. Historically, losses from
uncollectible accounts have not exceeded our reserves except that writeoffs
exceeded reserves by approximately $525,000 in fiscal 2002. Since we cannot
predict future changes in the financial stability of our customers, actual
future losses from uncollectible accounts may differ from our estimates. If the
financial condition of our customers were to deteriorate, resulting in their
inability to make payments, a larger reserve might be required. In the event
that a smaller or larger reserve was appropriate, we would record a credit or
charge to administrative expense in the period in which we made such a
determination.

INCOME TAXES

         We record valuation allowances against our deferred tax assets, when
necessary, in accordance with SFAS No. 109, "Accounting for Income Taxes".
Realization of deferred tax assets (such as net operating loss carryforwards) is
dependent on future taxable earnings and is therefore uncertain. At least
quarterly, we assess the likelihood that our deferred tax asset balance will be
recovered from future taxable income. To the extent that we believe recovery is
unlikely, we establish a valuation allowance against our deferred tax assets
increasing our income tax expense in the period such determination is made. An
increase in the valuation allowance would result in a charge to income tax
expense. A decrease in the valuation allowance would result in a reduction to
income tax expense.

         On an interim basis, we estimate what our effective tax rate will be
for the full fiscal year and record a quarterly income tax provision in
accordance with the anticipated annual rate. As the fiscal year progresses we
continually refine our estimate based upon actual events and earnings during the
year. This continual estimation process periodically results in a change to our
expected tax rate for the fiscal year. When this occurs, we adjust the income
tax provision during the quarter in which the change in estimate occurs so that
the year-to-date provision is in accordance with the annual anticipated rate.

PROPERTY, PLANT AND EQUIPMENT AND OTHER LONG-LIVED ASSETS

         Property, plant and equipment, including buildings, equipment, and
computer hardware and software is recorded at cost (including, in some cases,
the cost of internal labor) and is depreciated over estimated useful lives.
Changes in circumstances (such as technological advances or changes to our
business operations) can result in differences between the actual and estimated
useful lives. In those cases where we determine that the useful life of a
long-lived asset should be shortened, we increase depreciation expense over the
remaining estimated useful life to depreciate the asset to its salvage value.

                                       12
<PAGE>
         In accordance with SFAS No. 142, goodwill amortization was discontinued
as of November 30, 2002. We completed our first phase impairment analysis during
the quarter ended February 28, 2003 and found no instances of impairment.
Goodwill at February 28, 2003 and November 30, 2002 amounted to $5,448,552, net
of accumulated amortization of $2,181,571.

OTHER CONTINGENCIES

         In the ordinary course of business, we are involved in legal
proceedings involving contractual, employment relationships and a variety of
other matters. We record contingent liabilities resulting from claims against us
when it is probable that a liability has been incurred and the amount of the
loss is reasonably estimable. We disclose contingent liabilities when there is a
reasonable possibility that the ultimate loss will exceed the recorded
liability. Estimating probable losses requires analysis of multiple factors, in
some cases including judgements about the potential actions of third party
claimants and courts. Therefore, actual losses in any future period are
inherently uncertain. Currently, we do not believe that any of our pending legal
proceedings or claims will have a material impact on our financial position or
results of operations. However, if actual or estimated probable future losses
exceed our recorded liability for such claims, we would record additional
charges as other expense during the period in which the actual loss or change in
estimate occurred.

RECENT DEVELOPMENTS

         Effective February 19, 2001, Obie entered into a financing arrangement
with U.S. Bank. The arrangement provided for a $16.0 million term line maturing
in August of 2007, and a $6.0 million working capital line of credit available
for general purposes. These credit facilities are secured by substantially all
of the assets of Obie and its subsidiaries. Obie used the term revolver to
refinance all of its then-existing debt, including the previously outstanding
line of credit.

         On February 25, 2003, U.S. Bank and Obie agreed to a revised credit
facility which included a reduction in the working capital line of credit to
$4.5 million, modified financial ratio covenants, and reduced principal payment
requirements during fiscal 2003. $1.1 million was available under the working
capital line of credit as of May 31, 2003. The revised agreement extends the
term of the credit facility through December 15, 2003, when both the term
revolver and working capital credit line expire. The credit facility requires
the execution and delivery of definitive transaction documentation and Obie's
continued compliance with the revised covenants. Because the debt agreements
expire in December 2003, all of the outstanding debt has been classified as
current. The Company expects to replace these credit arrangements with alternate
arrangements which will contain terms and conditions typical for the media
industry. Discussions with other lenders are in process.


         Effective December 1, 2002, we formed a new wholly owned subsidiary,
Select Media, Inc. under which our national sales organization operates.








                                       13
<PAGE>
COMPARISON OF THE THREE MONTHS ENDED MAY 31, 2003 AND 2002

RESULTS OF CONTINUING OPERATIONS

REVENUES. Obie's revenues are derived from providing advertising space on
out-of-home advertising displays, primarily on transit vehicles under transit
district agreements and on outdoor advertising displays we own or operate.
Revenues are also derived from the sale of design and installation services and
the production of advertising display content. We focus our sales efforts on
maximizing occupancy levels while maintaining rate integrity in our markets. Net
revenues for the three months ended May, 2003 decreased $315,000, or 2.9%, to
$10.6 million in 2003 from $10.9 million for the same period in fiscal 2002.
Transit net revenues decreased $106,000, or 1.2% to $9.1 million for the three
month period in fiscal 2003, from $9.2 million for the same period of fiscal
2002. The small decrease is reflective of the continuing weaknesses in the
advertising economy principally in our California and northeastern United States
markets. Outdoor net revenues decreased approximately $209,000, or 11.7% to $1.6
million in the three month period in fiscal 2003, compared to $1.8 million in
the comparable period in 2002. This decrease was due primarily to lower levels
of billboard occupancy in fiscal 2003 when compared to fiscal 2002 in our
Portland, Oregon and California markets.

PRODUCTION AND INSTALLATION EXPENSES. These expenses relate primarily to the
production of transit advertising content and the installation of the content on
transit vehicles, benches and shelters. Also included is the cost of billboard
content and installation. Production and installation expenses increased
approximately $43,000, or 2.8% to $1.6 million in fiscal 2003 from $1.5 million
in fiscal 2002. The Company's production and installation activities are
primarily related to the transit advertising part of our business, and increased
to 17.2% of net transit sales in the three month period in 2003, when compared
to 16.6% in the same period of 2002. The increase reflects a higher production
income (and related costs) component when compared to total transit sales.

TRANSIT AND OUTDOOR OCCUPANCY EXPENSES. These expenses include fees paid to
transit authorities and lease payments to landowners for billboard sites. Under
Obie Media's transit agreements, we typically guarantee to pay the transit
district the greater of a minimum stated amount or a percentage of the
advertising revenues generated by our use of the district's vehicles. Occupancy
expense for outdoor structures includes the cost of illuminating outdoor
displays and property taxes on the outdoor advertising structures. Transit and
outdoor occupancy expenses remained relatively unchanged at $4.5 million and
approximately 42% of net revenues in the second quarters of fiscal 2003 and
2002.

SELLING EXPENSES. Sales expenses consist primarily of employment and
administrative expenses associated with our sales force. These expenses
decreased $276,000, or 12.0% to $2.0 million for the three month period in
fiscal 2003, from $2.3 million in the same period in fiscal 2002. The reduction
is related primarily increased realization of cost containment measures enacted
throughout the prior year.

GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses include
costs related to individual markets, as well as corporate expenses. Expenses
related to individual markets include expenses for the personnel and facilities
required to administer that market and neighboring markets. Corporate general
and administrative expenses represent personnel and facilities costs for Obie
Media's executive offices and centralized staff functions which include
accounting, marketing, human resources and technology management.

                                       14
<PAGE>
General and administrative expenses decreased approximately $237,000, or 12.3%,
to $1.7 million in the three month period of fiscal 2003 from $1.9 million in
the same period of fiscal 2002. The decrease was due primarily to personnel
reductions in marketing, human resources and the business office at the
corporate headquarters that were implemented in the final two quarters of fiscal
2002. These reductions impacted the first and second quarters of 2003.

DEPRECIATION AND AMORTIZATION EXPENSES. Depreciation and amortization expenses
decreased approximately $98,000, or 17.8%, to $450,000 in fiscal 2003 as
compared to $548,000 for the same period in fiscal 2002. The decrease is related
almost entirely to the fact that effective at the beginning of fiscal year 2003
we have adopted the provisions of SFAS No. 142 and no longer amortize goodwill.

OPERATING INCOME. Due to the events and factors discussed above we generated
operating income of $363,000 in the three month period ending May 30, 2003,
compared to $123,000 in the same period of fiscal 2002.

INTEREST EXPENSE. Interest expense increased $268,000, or 84.6%, to $584,000 for
the three month period in fiscal 2003 from $316,000 for the comparable period of
fiscal 2002. The increase was due primarily to the amortization of the discount
on the Chicago Transit Authority settlement in the three month period of fiscal
2003, of which there was none in the comparable period of fiscal 2002.

PROVISION FOR INCOME TAXES. The Company accounted
for all available loss carryback refunds in the fiscal 2001 provision for income
taxes. The Company has substantial loss carryforwards, against which valuation
allowances have been provided. Since the operating loss carryforwards expire at
certain times, we have evaluated the likeliness of utilizing those carryforwards
against future taxable income in that time frame and have established a
valuation allowance accordingly.

The difference between the statutory United States federal income tax rate and
the beneficial tax rate for fiscal 2002 is due primarily to the deferred tax
valuation reserve for the net operating loss carryforwards. The provision for
income taxes of $134,000 in the fiscal period of 2003 reflects income tax
liabilities of the Company's Canadian subsidiary.

INCOME (LOSS) FROM CONTINUING OPERATIONS. Due to the items and factors discussed
above we generated a loss of $355,000 in the three month period in fiscal 2003,
as compared to a loss of $193,000 for the same period in fiscal 2002.

RESULTS OF DISCONTINUED OPERATIONS

Most transit arrangements include a provision that a certain percentage of net
revenues be shared with the transit authorities (transit fees) on a revenue
sharing basis (a certain percentage to the transit authority, the balance
retained by Obie), but often with minimum payment requirements. Agreements that
contain large minimum transit fee payment guarantees significantly hinder Obie's
ability to manage its operating expenses in weak economic environments. These
high minimum payment requirements have prompted the Company to negotiate
modifications to such contracts, negotiate or effect early terminations to such
contracts, or exit such markets at the end of the contract term.

As discussed above, discontinued operations contain the operating results, net
of income taxes, for transit markets from which we have exited. The discontinued
operations for the three month period of both fiscal 2003 and 2002 include the
operations of San Antonio, Texas, Cincinnati, Ohio (transit), Kitsap,
Washington, Santa Cruz, California, Bridgeport, Connecticut and the Ontario,
Canada markets described above.

                                       15
<PAGE>
NET LOSS

Due to the items and factors discussed above, Obie realized a net loss of
$461,000 during the first three months of fiscal 2003, compared to a net loss of
$522,000 in the same period of fiscal 2002.

COMPARISON OF THE SIX MONTHS ENDED MAY 31, 2003 AND 2002

RESULTS OF CONTINUING OPERATIONS

REVENUES. Obie's revenues are derived from providing advertising space on
out-of-home advertising displays, primarily on transit vehicles under transit
district agreements and on outdoor advertising displays we own or operate.
Revenues are also derived from the sale of design and installation services and
the production of advertising display content. We focus our sales efforts on
maximizing occupancy levels while maintaining rate integrity in our markets. Net
revenues for the six months ended May, 2003 decreased $1.2 million or 5.8%, to
$19.3 million in 2003 from $20.5 million for the same period in fiscal 2002.
Transit net revenues decreased $977,000, or 5.7% to $16.1 million for the six
month period in fiscal 2003, from $17.1 million for the same period of fiscal
2002. The decrease is reflective of the continuing weaknesses in the advertising
economy principally in our California and northeastern United States markets.
Outdoor net revenues decreased approximately $207,000, or 6.0% to $3.3 million
in the six month period in fiscal 2003, compared to $3.5 million in the
comparable period in 2002. This decrease was due primarily to lower levels of
billboard occupancy in the second quarter of fiscal 2003 when compared to the
comparable period of fiscal 2002 in our Portland, Oregon and California markets.

PRODUCTION AND INSTALLATION EXPENSES. These expenses relate primarily to the
production of transit advertising content and the installation of the content on
transit vehicles, benches and shelters. Also included is the cost of billboard
content and installation. Production and installation expenses decreased
approximately $202,000, or 6.5% to $2.9 million in fiscal 2003 from $3.1 million
in fiscal 2002. The Company's production and installation activities are
primarily related to the transit advertising part of our business, and remained
relatively unchanged at approximately 18% of transit net revenues for the six
month periods in both 2003 and 2002.

TRANSIT AND OUTDOOR OCCUPANCY EXPENSES. These expenses include fees paid to
transit authorities and lease payments to landowners for billboard sites. Under
Obie Media's transit agreements, we typically guarantee to pay the transit
district the greater of a minimum stated amount or a percentage of the
advertising revenues generated by our use of the district's vehicles. Occupancy
expense for outdoor structures includes the cost of illuminating outdoor
displays and property taxes on the outdoor advertising structures. Transit and
outdoor occupancy expenses decreased approximately $264,000, or 3.1%, to $8.2
million for the six month period of fiscal 2003, from $8.4 million in the
comparable period of fiscal 2002. These expenses amounted to approximately 42%
of net revenues in fiscal 2003 as compared to approximately 41% in the same
period of 2002. The slight increase, as a percentage of net revenues, in 2003,
relates to the decline in billboard net revenues mentioned above where the fixed
occupancy costs (primarily land lease costs) were unchanged.

SELLING EXPENSES. Sales expenses consist primarily of employment and
administrative expenses associated with our sales force. These expenses
decreased $936,000, or 19.7% to $3.8 million for the six month period in fiscal
2003 from $4.8 million in the same period in fiscal 2002. The reduction is
related primarily to increased realization of cost containment measures enacted
throughout the prior year that were not present in the first six months of
fiscal 2002.

GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses include
costs related to individual markets, as well as corporate expenses. Expenses
related to individual markets include expenses for the personnel and facilities
required to administer that market and neighboring markets. Corporate general
and administrative expenses represent personnel and facilities costs for Obie
Media's executive offices and centralized staff functions which include
accounting, marketing, human resources and technology management.

                                       16
<PAGE>
General and administrative expenses decreased approximately $375,000, or 9.6%,
to $3.5 million in the six month period of fiscal 2003 from $3.9 million in the
same period of fiscal 2002. The decrease was due primarily to personnel
reductions in marketing, human resources and the business office at the
corporate headquarters that were implemented in the final two quarters of fiscal
2002. These reductions impacted the first and second quarters of 2003.

DEPRECIATION AND AMORTIZATION EXPENSES. Depreciation and amortization expenses
decreased approximately $176,000, or 16.3%, to $919,000 in fiscal 2003 as
compared to $1.1 million for the same period in fiscal 2002. The decrease is
related almost entirely to the fact that effective at the beginning of fiscal
year 2003 we have adopted the provisions of SFAS No. 142 and no longer amortize
goodwill.

OPERATING INCOME. Due to the events and factors discussed above we generated an
operating loss of $23,000 in the six month period ending May 31, 2003, compared
to a loss of $793,000 in the same period of fiscal 2002.

INTEREST EXPENSE. Interest expense increased $496,000, or 78.4%, to $1.1 million
for the six month period in fiscal 2003 from $632,000 for the comparable period
of fiscal 2002. The increase was due primarily to the amortization of the
discount on the Chicago Transit Authority settlement in the six month period of
fiscal 2003, of which there was none in the comparable period of fiscal 2002.

PROVISION FOR INCOME TAXES. The Company accounted
for all available loss carryback refunds in the fiscal 2001 provision for income
taxes. The Company has substantial loss carryforwards, against which valuation
allowances have been provided. Since the operating loss carryforwards expire at
certain times, we have evaluated the likeliness of utilizing those carryforwards
against future taxable income in that time frame and have established a
valuation allowance accordingly.

The difference between the statutory United States federal income tax rate and
the beneficial tax rate for fiscal 2002 and is due primarily to the deferred tax
valuation reserve for the net operating loss carryforwards. The provision for
income taxes of $134,000 in the fiscal period of 2003 reflects income tax
liabilities of the Company's Canadian subsidiary.

INCOME (LOSS) FROM CONTINUING OPERATIONS. Due to the items and factors discussed
above we experienced a loss of $1.3 million in the six month period in fiscal
2003, as compared to a loss of $1.4 million for the same period in fiscal 2002.

RESULTS OF DISCONTINUED OPERATIONS

Most transit arrangements include a provision that a certain percentage of net
revenues be shared with the transit authorities (transit fees) on a revenue
sharing basis (a certain percentage to the transit authority, the balance
retained by Obie), but often with minimum payment requirements. Agreements that
contain large minimum transit fee payment guarantees significantly hinder Obie's
ability to manage its operating expenses in weak economic environments. These
high minimum payment requirements have prompted the Company to negotiate
modifications to such contracts, negotiate or effect early terminations to such
contracts, or exit such markets at the end of the contract term.

As discussed above, discontinued operations contain the operating results, net
of income taxes, for transit markets from which we have exited. The discontinued
operations for the six month period of both fiscal 2003 and 2002 include the
operations of San Antonio, Texas, Cincinnati, Ohio (transit), Kitsap,
Washington, Santa Cruz, California, Bridgeport, Connecticut and the Ontario,
Canada markets described above.

                                       17
<PAGE>
NET LOSS

Due to the items and factors discussed above, Obie realized a net loss of $1.5
million during the first six months of fiscal 2003, compared to a net loss of
$2.0 million in the same period of fiscal 2002.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's credit arrangements with U.S. Bank include a $13.8
million term loan revolver and a $4.5 million working capital revolver, both
maturing on December 15, 2003, and are collateralized by substantially all of
the assets of the Company. The term loan revolver limits decrease quarterly
through the maturity date. The interest rates are at U.S. Bank's prime rate plus
3.75% for the term revolver and prime rate plus 3.25% for the working capital
revolver. At May 31, 2003 the effective rates were 8.0% and 7.5% for the term
loan and working capital revolvers respectively. Amount outstanding under the
term revolver was $13,500,000 and $3,380,483 under the working capital revolver
at May 31, 2003. Because the Company's debt agreements expire in December 2003,
all of the outstanding debt has been classified as current. The Company expects
to replace these credit arrangements with alternative arrangements which will
contain terms and conditions typical for the media industry. Discussions with
other lenders are in process.

         The U.S. Bank loan agreements contain certain restrictive covenants and
required ratios. These include Fixed Charge Coverage, Interest Coverage and
Leverage ratios and a minimum EBITDA level covenant, all of which are measured
quarterly. On February 25, 2003 U.S. Bank and Obie agreed to a revised credit
facility which included a reduction in the working capital line of credit to
$4.5 million, modifications of the above mentioned financial ratios and
covenants, and a reduction of principal payment requirements for fiscal 2003.
$1.1 million was available under the working capital line of credit as of May
31, 2003. The revised agreement extends the term of the credit facility through
December 15, 2003, when both the term revolver and working capital credit line
expire. As of May 31, 2003 the Company was in compliance with the revised
covenants.

         The Company has historically satisfied our working capital requirements
with cash from operations and revolving credit borrowings. Our working capital
at May 31, 2003 was a negative $7.7 million as compared to a positive $7.2
million at November 30, 2002. This decrease is due primarily to the fact that
the bank debt classified as long-term at November 30, 2002 has been classified
as current at May 31, 2003, pending completion of the refinancing process.
Acquisitions and capital expenditures, primarily for the construction of new
outdoor advertising displays, digital printing equipment and technology related
assets have been financed primarily with borrowed funds. At May 31, 2003, Obie
had outstanding borrowings of $22.8 million, of which $17.0 million was pursuant
to credit agreements with U.S. Bank, $200,000 pursuant to the agreement to
acquire the minority interest in O. B. Walls in 2002, and $5.6 million relative
to the settlement of the Chicago Transit Authority dispute. The Company's
indebtedness is collateralized by substantially all of its assets. At May 31,
2003, available borrowing capacity under the line of credit, based on
collateralized accounts, was approximately $1.1 million.

         Obie's net cash used in operating activities was $153,000 during the
six months ended May 31, 2003, as compared to net cash used in operating
activities of $115,000 for the same period in fiscal 2002.

         Net cash used in investing activities was $351,000 and $633,000 during
the six month periods ended May 31, 2003 and 2002, respectively. The amounts
spent on billboard upgrades and on other equipment was approximately the same in
both fiscal year periods. However, in the six month period of fiscal 2002, we
also purchased our third large format digital production printer, which
accounted for the majority of the difference.

         Net cash used in financing activities was $778,000 for the six month
period ended May 31, 2003, as compared to net cash provided of $2.8 million in
the same period of fiscal 2002. The decrease was primarily the result of reduced
utilization of the working capital credit line during fiscal 2003 and no term
debt borrowed in 2003, as compared to $1.3 million borrowed in fiscal 2002.

                                       18
<PAGE>
         We expect to pursue a policy of measured growth through obtaining
favorable new transit district agreements, acquiring out-of-home advertising
companies or assets and constructing new outdoor advertising displays. We intend
to finance future expansion activities using a combination of internal and
external sources. We believe that internally generated funds and funds available
for borrowing under bank credit facilities will be sufficient to satisfy all
debt service obligations, to finance existing operations, including anticipated
capital expenditures, but excluding possible acquisitions, through fiscal 2003.
Future acquisitions by Obie, if any, may require additional debt or equity
financing.

SEASONALITY

         Obie's revenues and operating results historically have fluctuated by
season, generally following the advertising trends in our major transit markets.
Typically, results of operations are strongest in the fourth quarter and weakest
in the first quarter of our fiscal year which ends on November 30. Transit
advertising operations are more seasonal than outdoor advertising operations as
the Company's outdoor advertising display space, unlike its transit advertising
display space, is and has been sold largely by means of 12-month contracts. The
Company believes that the seasonality of revenues and operating results will
increase if transit advertising operations continue to expand more rapidly than
outdoor advertising operations. This seasonality, together with fluctuations in
general and regional economic conditions and the timing and expenses related to
acquisitions, the obtaining of new transit agreements and other actions that
have been taken to implement the Company's growth strategy, have contributed to
fluctuations in periodic operating results. These fluctuations likely will
continue. Accordingly, results of operations in any period may not be indicative
of the results to be expected for any future period.

ITEM 3.  QUANTATATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         The Company has not entered into derivative financial instruments.

ITEM 4.  CONTROLS AND PROCEDURES

         Under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and Chief Financial
Officer, the Company has evaluated the effectiveness of the design and operation
of its disclosure controls and procedures pursuant to applicable rules under the
Securities Exchange Act of 1934, as amended, within 90 days of the date of this
report. Based on that evaluation, the Company's Chief Executive Officer and
Chief Financial Officer have concluded that these disclosure controls and
procedures are effective. There were no significant changes in the Company's
internal controls or in other factors that could significantly affect internal
controls subsequent to the date of their evaluation.











                                       19
<PAGE>
PART II - OTHER INFORMATION

ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

         No matters were submitted to security holders for vote during the three
months ended May 31, 2003.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits

         99.1   Press Release, dated April 7, 2003

(b)      The Company filed a Form 8-K on April 10, 2003 reporting that it had
         issued a press release on April 7, 2003 reporting earnings for the
         fiscal quarter ended February 28, 2003. The Company also filed a Form
         8-K on May 22, 2003 reporting that the Company's stock listing on
         NASDAQ had moved to the SmallCap Listing service.






Signature

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                        Obie Media Corporation



 Date July 10, 2003             By: /s/ GARY F. LIVESAY *
                                        Gary F. Livesay
                                        Vice President - Chief Financial Officer

                              * Signing on behalf of the registrant as
                                principal financial and accounting officer


















                                       20
<PAGE>
                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gary F. Livesay, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Obie Media Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  July 10, 2003
                                     By: /s/ GARY F. LIVESAY
                                             Vice President
                                             Chief Financial Officer


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                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Brian B. Obie, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Obie Media Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date:  July 10, 2003
                                          By: /s/ BRIAN B. OBIE
                                                  President
                                                  Chief Executive Officer


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<PAGE>

















                            CERTIFICATION PURSUANT TO

                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Obie Media Corporation (the Company )
on Form 10-Q for the quarterly period ended February 28, 2003, as filed with the
Securities and Exchange Commission on the date hereof (the Report ), I, Gary F.
Livesay, Vice President and Chief Financial Officer, certify, pursuant to 18
U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes Oxley Act of 2002, that
to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.


By: /s/ GARY F. LIVESAY
        Vice President
        Chief Financial Officer




















                                       23
<PAGE>

















                            CERTIFICATION PURSUANT TO

                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Obie Media Corporation (the Company )
on Form 10-Q for the quarterly period ended February 28, 2003, as filed with the
Securities and Exchange Commission on the date hereof (the Report ), I, Brian B.
Obie, President and Chief Executive Officer, certify, pursuant to 18 U.S.C.
1350, as adopted pursuant to 906 of the Sarbanes Oxley Act of 2002, that to the
best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company.


By: /s/ BRIAN B. OBIE
        President
        Chief Executive Officer




















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