Lamar Advertising Company Announces Third Quarter 2006 Operating Results.

BATON ROUGE, La. -- Lamar Advertising Company (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company's operating results for the third quarter ended September 30, 2006.

Third Quarter Results

Lamar reported net revenues

of $292.0 million for the third quarter of 2006 versus $265.6 million for the third quarter of 2005, a 10.0% increase. Operating income for the third quarter of 2006 was $59.4 million as compared to $48.7 million for the same period in 2005. There were net earnings of $16.8 million for the third quarter of 2006 compared to net earnings of $12.1 million for the third quarter of 2005.

Adjusted EBITDA,which we refer to herein as EBITDA (defined as operating income before non-cash compensation, depreciation and amortization and (gain) loss on disposition of assets - see reconciliation to net income at the end of this release), for the third quarter of 2006 was $134.2 million versus $122.8 million for the third quarter of 2005, a 9.3% increase.

Free cash flow (defined as EBITDA less interest, net of interest income and amortization of financing costs, current taxes, preferred stock dividends and total capital expenditures - see reconciliation to cash flows provided by operating activities at the end of this release) for the third quarter of 2006 was $32.9 million as compared to $74.4 million for the same period in 2005, a 55.8% decrease. The decline in free cash flow was primarily due to an increase in capital expenditures of $35.0 million as compared to the third quarter of 2005. Of this increase, approximately $25.0 million was for the deployment of new digital billboards. Interest, net of interest income and amortization of financing costs also increased by approximately $5.5 million due to rising interest rates and increased indebtedness. Current taxes, primarily consisting of Canadian and U.S. state and federal income taxes, increased by approximately $12.5 million.

Pro forma net revenue for the third quarter of 2006 increased 8.3% and pro forma EBITDA increased 7.8% as compared to the third quarter of 2005. Pro forma net revenue and EBITDA include adjustments to the 2005 period for acquisitions and divestitures for the same time frame as actually owned in the 2006 period. Tables that reconcile reported results to pro forma results and operating income to outdoor operating income are included at the end of this release.

Nine Months Results

Lamar reported net revenues of $832.9 million for the nine months ended September 30, 2006 versus $763.2 million for the same period in 2005, a 9.1% increase. Operating income for the nine months ended September 30, 2006 was $145.9 million as compared to $131.7 million for the same period in 2005. EBITDA increased 7.8 % to $371.5 million for the nine months ended September 30, 2006 versus $344.6 million for the same period in 2005. There was net income of $36.8 million for the nine months ended September 30, 2006 as compared to net income of $35.9 million for the same period in 2005.

Free Cash Flow for the nine months ended September 30, 2006 was $97.8 million as compared to $203.2 million for the same period in 2005, a 52% decrease.

Stock Repurchase Program

In July 2006, Lamar completed the $250 million stock repurchase plan previously announced in November 2005. In August 2006, Lamar announced that its Board of Directors had authorized a new repurchase plan of up to $250 million of the Company's Class A Common Stock that may be repurchased from time to time in open market or privately negotiated transactions over a period not to exceed 18 months. As of September 30, 2006, the Company has purchased approximately 359,957 shares under this new repurchase program for an aggregate purchase price of approximately $19.2 million.

Guidance

For the fourth quarter of 2006 the Company expects net revenue to be approximately $286 million. On a pro forma basis this represents an increase of approximately 9% over the same period in 2005.

Forward Looking Statements

This press release contains forward-looking statements, including the statements regarding guidance for the fourth quarter of 2006 and the stock repurchase plan. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others, (1) our significant indebtedness; (2) the continued popularity of outdoor advertising as an advertising medium; (3) the regulation of the outdoor advertising industry; (4) our need for and ability to obtain additional funding for acquisitions or operations; (5) the integration of companies that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (6) the strength of the economy generally and the demand for advertising in particular; (7) the market for our Class A common stock and our management's allocation of working capital to fund our stock repurchase program as opposed to other uses and (8) other factors described in the reports on Forms 10-K and 10-Q and the registration statements that we file from time to time with the SEC. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.

Use of Non-GAAP Measures

EBITDA, free cash flow, pro forma results and outdoor operating income are not measures of performance under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered alternatives to operating income, net loss, cash flows from operating activities, or other GAAP figures as indicators of the Company's financial performance or liquidity. The Company's management believes that EBITDA, free cash flow, pro forma results and outdoor operating income are useful in evaluating the Company's performance and provide investors and financial analysts a better understanding of the Company's core operating results. The pro forma acquisition adjustments are intended to provide information that may be useful for investors when assessing period to period results. Our presentations of these measures may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included at the end of this release.

Conference Call Information

A conference call will be held to discuss the Company's operating results Wednesday, November 8, 2006 at 2:00 p.m. central time. Instructions for the conference call and Webcast are provided below:

Conference Call

All Callers:      1-334-323-9871 or 1-334-323-9872
Passcode:         Lamar

Replay:           1-877-919-4059
Passcode:         23495119
                  Available through Monday, November 13, 2006 at
                    11:59 p.m. eastern time

Live Webcast:     www.lamar.com

Webcast Replay:   www.lamar.com
                  Available through Monday, November 13, 2006 at
                    11:59 p.m. eastern time

General Information on Lamar

Lamar Advertising Company is a leading outdoor advertising company currently operating over 150 outdoor advertising companies in 44 states and Puerto Rico, logo businesses in 20 states and the province of Ontario, Canada and over 70 transit advertising franchises in the United States, Canada and Puerto Rico.

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(a) Pro forma net revenues, direct advertising and general and
    administrative expenses, outdoor operating income, corporate
    expenses, and EBITDA include adjustments to 2005 for
    acquisitions and divestitures for the same time frame as actually
    owned in 2006.
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