UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended June 30, 2002 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 0-30242 LAMAR ADVERTISING COMPANY Commission File Number 1-12407 LAMAR MEDIA CORP. (Exact name of registrants as specified in their charters) Delaware 72-1449411 Delaware 72-1205791 (State or other jurisdiction of incorporation or (I.R.S. Employer organization) Identification No.) 5551 Corporate Blvd., Baton Rouge, LA 70808 (Address of principal executive offices) (Zip Code) Registrants' telephone number, including area code: (225) 926-1000 Indicate by check mark whether each 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 ( ) The number of shares of Lamar Advertising Company's Class A common stock outstanding as of August 2, 2002: 84,984,257 The number of shares of the Lamar Advertising Company's Class B common stock outstanding as of August 2, 2002: 16,417,073 The number of shares of Lamar Media Corp. common stock outstanding as of August 2, 2002: 100 This combined Form 10-Q is separately filed by (i) Lamar Advertising Company and (ii) Lamar Media Corp. (which is a wholly-owned subsidiary of Lamar Advertising Company). Lamar Media Corp. meets the conditions set forth in general instruction H(1) (a) and (b) of Form 10-Q and is, therefore, filing this form with the reduced disclosure format permitted by such instruction.

NOTE REGARDING FORWARD-LOOKING STATEMENTS This combined Quarterly Report on Form 10-Q of Lamar Advertising Company and Lamar Media Corp. contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These are statements that relate to future periods and include statements regarding the Company's and Lamar Media's anticipated performance in 2002. Generally, the words anticipates, believes, expects, intends, estimates, projects, plans and similar expressions identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Company's and Lamar Media's actual results, performance or achievements or industry results, to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: o the performance of the U.S. economy generally and the level of expenditures on outdoor advertising particularly; o the Company's ability to renew expiring contracts at favorable rates; o the integration of companies that the Company acquires and its ability to recognize cost savings or operating efficiencies as a result of these acquisitions; o risks and uncertainties relating to the Company's significant indebtedness; o the Company's need for and ability to obtain additional funding for acquisitions or operations; and o the regulation of the outdoor advertising industry. For a further description of these and other risks and uncertainties, the Company encourages you to carefully read the portion of the combined Annual Report on Form 10-K for the year ended December 31, 2001 of the Company and Lamar Media (the "2001 Combined Form 10-K") under the caption "Factor Affecting Future Operating Results" in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations filed with the SEC on March 21, 2002. The Company cautions 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 report, and Lamar Advertising Company and Lamar Media undertake no obligation to update or revise the statements, except as may be required by law.

CONTENTS

Page ---- PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Lamar Advertising Company Condensed Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001 1 Condensed Consolidated Statements of Operations for the three months ended June 30, 2002 and 2001 and six months ended June 30, 2002 and 2001 2 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2001 3 Notes to Condensed Consolidated Financial Statements 4 - 7 Lamar Media Corp. Condensed Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001 8 Condensed Consolidated Statements of Operations for the three months ended June 30, 2002 and 2001 and six months ended June 30, 2002 and 2001 9 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2001 10 Notes to Condensed Consolidated Financial Statements 11 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12 - 15 ITEM 3. Quantitative and Qualitative Disclosures About Market Risks 16 PART II - OTHER INFORMATION ITEM 4. Submission of matters to a vote of security holders 17 ITEM 6. Exhibits and Reports on Form 8-K 18 Signatures 18

PART I - FINANCIAL INFORMATION ITEM 1.- FINANCIAL STATEMENTS LAMAR ADVERTISING COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

June 30, December 31, ASSETS 2002 2001 ------------ ------------ Current assets: Cash and cash equivalents $ 40,601 $ 12,885 Receivables, net 109,843 95,135 Prepaid expenses 41,509 27,176 Other current assets 14,061 8,019 ------------ ------------ Total current assets 206,014 143,215 ------------ ------------ Property, plant and equipment 1,832,014 1,777,399 Less accumulated depreciation and amortization (510,365) (451,686) ------------ ------------ Net property plant and equipment 1,321,649 1,325,713 ------------ ------------ Intangible assets 2,200,150 2,179,475 Other assets - non-current 19,795 17,304 ------------ ------------ Total assets $ 3,747,608 $ 3,665,707 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 9,280 $ 10,048 Current maturities of long-term debt 97,314 66,559 Accrued expenses 30,733 33,674 Deferred income 12,544 11,618 ------------ ------------ Total current liabilities 149,871 121,899 ------------ ------------ Long-term debt 1,743,369 1,745,026 Deferred income taxes 122,246 118,837 Other liabilities 8,457 7,724 ------------ ------------ Total liabilities 2,023,943 1,993,486 ------------ ------------ Stockholders' equity: Series AA preferred stock, par value $.001, $63.80 cumulative dividends, authorized 5,720 shares; 5,719 shares issued and outstanding at 2002 and 2001 -- -- Class A preferred stock, par value $638, $63.80 cumulative dividends, 10,000 shares authorized; 0 shares issued and outstanding at 2002 and 2001 -- -- Class A common stock, par value $.001, 175,000,000 shares authorized, 84,891,657 and 82,899,800 shares issued and outstanding at 2002 and 2001, respectively 85 83 Class B common stock, par value $.001, 37,500,000 shares authorized, 16,417,073 and 16,611,835 shares issued and outstanding at 2002 and 2001, respectively 17 17 Additional paid-in capital 2,031,160 1,963,065 Accumulated deficit (307,597) (290,944) ------------ ------------ Stockholders' equity 1,723,665 1,672,221 ------------ ------------ Total liabilities and stockholders' equity $ 3,747,608 $ 3,665,707 ============ ============
See accompanying notes to condensed consolidated financial statements. -1-

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

Three Months Ended Six Months Ended June 30, June 30, 2002 2001 2002 2001 ------------- ------------- ------------- ------------- Net revenues $ 202,529 $ 191,788 $ 379,067 $ 362,173 ------------- ------------- ------------- ------------- Operating expenses Direct advertising expenses 66,632 61,315 133,859 122,851 General and administrative expenses 39,417 36,436 80,623 74,132 Depreciation and amortization 69,401 88,823 136,501 174,230 Gain on disposition of assets (81) (803) (170) (1,019) ------------- ------------- ------------- ------------- 175,369 185,771 350,813 370,194 ------------- ------------- ------------- ------------- Operating income (loss) 27,160 6,017 28,254 (8,021) Other expense (income) Interest income (166) (178) (387) (422) Interest expense 27,241 32,972 54,017 68,752 ------------- ------------- ------------- ------------- 27,075 32,794 53,630 68,330 ------------- ------------- ------------- ------------- Income (loss) before income tax expense (benefit) 85 (26,777) (25,376) (76,351) Income tax expense (benefit) 393 (6,377) (8,905) (21,661) ------------- ------------- ------------- ------------- Net loss (308) (20,400) (16,471) (54,690) Preferred stock dividends 91 91 182 182 ------------- ------------- ------------- ------------- Net loss applicable to common stock $ (399) $ (20,491) $ (16,653) $ (54,872) ============= ============= ============= ============= Loss per common share - basic and diluted: $ (--) $ (.21) $ (.17) $ (.56) ============= ============= ============= ============= Weighted average common shares outstanding 100,967,615 98,209,271 100,756,037 97,903,588 Incremental common shares from dilutive stock options -- -- -- -- Incremental common shares from convertible debt -- -- -- -- ------------- ------------- ------------- ------------- Weighted average common shares assuming dilution 100,967,615 98,209,271 100,756,037 97,903,588 ============= ============= ============= =============
See accompanying notes to condensed consolidated financial statements. -2-

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS)

Six Months Ended June 30, 2002 2001 --------- --------- Cash flows from operating activities: Net loss $ (16,471) $ (54,690) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 136,501 174,230 Gain on disposition of assets (170) (1,019) Deferred tax benefit (3,763) (22,013) Provision for doubtful accounts 4,678 3,602 Changes in operating assets and liabilities: (Increase) decrease in: Receivables (18,056) (18,238) Prepaid expenses (13,482) (11,436) Other assets (5,980) 471 Increase (decrease) in: Trade accounts payable (768) 2,088 Accrued expenses (2,724) (10,657) Other liabilities (51) 145 Deferred income 772 196 --------- --------- Net cash provided by operating activities 80,486 62,679 --------- --------- Cash flows from investing activities: Acquisition of new markets (55,481) (226,929) Capital expenditures (36,080) (36,925) Proceeds from disposition of assets 1,636 3,334 --------- --------- Net cash used in investing activities (89,925) (260,520) --------- --------- Cash flows from financing activities: Debt issuance costs (1,062) (389) Net proceeds from issuance of common stock 11,682 50,217 Principal payments on long-term debt (33,283) (2,375) Net borrowings under credit agreements 60,000 81,000 Dividends (182) (182) --------- --------- Net cash provided by financing activities 37,155 128,271 --------- --------- Net increase (decrease) in cash and cash equivalents 27,716 (69,570) Cash and cash equivalents at beginning of period 12,885 72,340 --------- --------- Cash and cash equivalents at end of period 40,601 2,770 --------- --------- Supplemental disclosures of cash flow information: Cash paid for interest $ 54,041 $ 67,301 ========= ========= Cash paid for state and federal income taxes $ 1,652 $ 781 ========= ========= Common stock issuance related to acquisitions $ 53,000 $ 29,000 ========= =========
See accompanying notes to condensed consolidated financial statements. -3-

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) 1. Significant Accounting Policies The information included in the foregoing interim financial statements is unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company's financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements and the notes thereto included in the 2001 Combined Form 10-K. Certain amounts in the prior year's consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on previously reported net earnings. 2. Acquisitions On January 1, 2002, the Company purchased the stock of Delite Outdoor of Ohio Holdings, Inc. for $38,000. The purchase price consisted of 963,488 shares of Lamar Advertising Class A common stock. On January 8, 2002, the Company purchased the assets of MC Partners for a cash purchase price of approximately $15,313. On May 31, 2002, the Company purchased the assets of American Outdoor Advertising, Inc. for $15,777. The purchase price consisted of 349,376 shares of Lamar Advertising Class A common stock as well as approximately $777 in cash. During the six months ended June 30, 2002, the Company completed 41 additional acquisitions of outdoor advertising assets for a cash purchase price of approximately $39,391. Each of these acquisitions was accounted for under the purchase method of accounting, and, accordingly, the accompanying financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on fair market value at the dates of acquisition. The following is a summary of the preliminary allocation of the acquisition costs in the above transactions.

Property, Current Plant & Other Other Current Long-term Assets Equipment Goodwill Intangibles Assets Liabilities Liabilities --------- ---------- --------- ----------- -------- ----------- ----------- Delite Outdoor of Ohio Holdings 972 10,048 14,324 21,640 -- 742 8,242 MC Partners 245 2,563 5,523 9,363 -- 40 2,341 American 757 8,566 -- 6,454 -- -- -- Other 268 12,814 8,408 17,731 1,755 -- 1,585 --------- ---------- --------- ---------- -------- --------- ----------- 2,242 33,991 28,255 55,188 1,755 782 12,168 ========= ========== ========= ========== ======== ========= ===========
-4-

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) Summarized below are certain unaudited pro forma statements of operations data for the three months and six months ended June 30, 2002 and June 30, 2001 as if each of the above acquisitions and the acquisitions occurring in 2001, which were fully described in the 2001 Combined Form 10-K, had been consummated as of January 1, 2001. This pro forma information does not purport to represent what the Company's results of operations actually would have been had such transactions occurred on the date specified or to project the Company's results of operations for any future periods.

Three Months ended Six Months ended June 30, June 30, 2002 2001 2002 2001 --------- --------- --------- --------- Net revenues $ 203,013 $ 198,470 $ 380,284 $ 378,891 ========= ========= ========= ========= Net loss applicable to common stock $ (558) $ (20,847) (17,056) $ (56,515) ========= ========= ========= ========= Net loss per share applicable to common stock $ (.01) $ (.21) $ (.17) $ (.57) ========= ========= ========= =========
3. Goodwill and Other Intangible Assets - Adoption of Statement 142 The following is a summary of intangible assets at June 30, 2002 and December 31, 2001.
Estimated Life Amortizable Intangible Assets: (Years) 2002 2001 -------------- ----------- ----------- Debt issuance costs and fees 7 - 10 $ 48,440 $ 47,379 Customer lists and contracts 7 - 10 369,127 359,154 Non-compete agreements 3 - 15 56,853 56,419 Site locations and other 5 - 15 942,233 897,450 ----------- ----------- 1,416,653 1,360,402 Accumulated Amortization (379,518) (315,687) ----------- ----------- Net Amortizable Intangibles $ 1,037,135 $ 1,044,715 =========== =========== Unamortizable Intangible Assets: 2002 2001 ----------- ----------- Goodwill $ 1,416,650 $ 1,388,395 Accumulated Amortization (253,635) (253,635) ----------- ----------- Net Unamortizable Intangibles $ 1,163,015 $ 1,134,760 =========== ===========
The changes in the carrying amount of goodwill for the six months ended June 30, 2002 are as follows: Balance as of December 31, 2001 $ 1,388,395 Goodwill acquired during the year 28,255 Impairment losses 0 ----------- Balance as of June 30, 2002 $ 1,416,650 ===========
-5-

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) The following table illustrates the effect of the adoption of SFAS 142 on prior periods and its effect on the Company's earnings per share.

Three Months ended Six Months ended June 30, June 30, 2002 2001 2002 2001 ---------- ---------- ---------- ---------- Reported net loss applicable to common stock $ (399) $ (20,491) $ (16,653) $ (54,872) Add: goodwill amortization, net of tax -- 17,720 -- 34,777 ---------- ---------- ---------- ---------- Adjusted net loss applicable to common stock $ (399) $ (2,771) $ (16,653) $ (20,095) ========== ========== ========== ========== Earnings per common share--basic and diluted Reported net loss per common share $ (--) $ (.21) $ (.17) $ (.56) Add: goodwill amortization per share -- .18 -- .36 ---------- ---------- ---------- ---------- Adjusted net loss per common share $ (--) $ (.03) $ (.17) $ (.20) ========== ========== ========== ==========
In accordance with SFAS No. 142 "Goodwill and Other Intangible Assets", which the Company adopted on January 1, 2002, the Company has conducted an impairment review of goodwill. Based upon the review as of June 30, 2002, no impairment charge was required. 4. Long-term Debt On January 11, 2002, the Company activated $200,000 in new borrowings under the incremental facility of its bank credit agreement. The proceeds were used to reduce the outstanding balance of the revolving bank credit facility by $160,000 and approximately $10,000 was used for operations resulting in excess cash on hand of $30,000. Also, on January 30, 2002, JPMorgan Chase Bank issued a standby letter of credit of approximately $3,203 to benefit American Casualty Insurance Company, the provider of the Company's general liability and workman's compensation coverage. This issuance reduces the Company's availability under its revolving credit facility. Effective March 31, 2002, in accordance with the Company's bank credit agreement, the Company began to make its scheduled quarterly principal payments of $15,750 and commitments under the revolving facility of the bank credit agreement began reducing by $8,750 quarterly. On June 30, 2002, the Company had $328,888 available under the revolving credit facility. 5. Summarized Financial Information of Subsidiaries Separate financial statements of each of the Company's direct or indirect wholly owned subsidiaries that have guaranteed the Company's obligations with respect to its publicly issued notes (collectively, the "Guarantors") are not included herein because the guarantees are full and unconditional, joint and several, and the only subsidiary that is not a guarantor is considered minor. Lamar Media's ability to make distributions to Lamar Advertising is restricted under the terms of its bank credit facility and the indenture relating to Lamar Media's outstanding notes. 6. Earnings Per Share Earnings per share are computed in accordance with SFAS No. 128, "Earnings Per Share." The calculations of basic earnings per share exclude any dilutive effect of stock options and convertible debt while diluted earning per share includes the dilutive effect of stock options and convertible debt. The number of potentially dilutive shares excluded from the calculation because of their anti-dilutive effect are 6,975,093 and 6,683,547 for three months ended June 30, 2002 and 2001, and 6,941,143 and 6,705,656 for the six months ended June 30, 2002 and 2001, respectively. -6-

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (IN THOUSANDS, EXCEPT FOR SHARE AND PER SHARE DATA) 7. New Accounting Pronouncements Effective January 1, 2002, the Company adopted SFAS No. 142, "Goodwill and Other Intangible Assets". SFAS No. 142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment at least annually in accordance with the provisions of SFAS No. 142. SFAS No. 142 also requires that intangible assets with estimable useful lives be amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" and subsequently SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets", after its adoption. In August, 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS No. 144 addresses financial accounting and reporting for the impairment or disposal of long-lived assets. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. SFAS No. 144 requires companies to separately report discontinued operations and extends that reporting to a component of an entity that either has been disposed of (by sale, abandonment, or in a distribution to owners) or is classified as held for sale. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Company adopted SFAS No. 144 on January 1, 2002. In April, 2002, the FASB issued Statement 145, Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections ("Statement 145"). This statement rescinds SFAS No. 4, Reporting Gains and Losses from Extinguishments of Debt, and requires that all gains and losses from extinguishments of debt should be classified as extraordinary items only if they meet the criteria in APB No. 30. Applying APB No. 30 will distinguish transactions that are part of an entity's recurring operations from those that are unusual or infrequent or that meet the criteria for classification as to an extraordinary item. Any gain or loss on extinguishment of debt that was classified as an extraordinary item in prior periods presented that does not meet the criteria in APB No. 30 for classification as an extraordinary item must be reclassified. The Company will adopt the provisions related to the rescission of SFAS No. 4 as of January 1, 2003. -7-

LAMAR MEDIA CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

June 30, December 31, ASSETS 2002 2001 ------------ ------------ Current assets: Cash and cash equivalents $ 40,601 $ 12,885 Receivables, net 109,771 93,043 Prepaid expenses 41,509 27,176 Other current assets 16,586 17,688 ------------ ------------ Total current assets 208,467 150,792 ------------ ------------ Property, plant and equipment 1,832,014 1,777,399 Less accumulated depreciation and amortization (510,365) (451,686) ------------ ------------ Net property plant and equipment 1,321,649 1,325,713 ------------ ------------ Intangible assets 2,179,081 2,156,079 Other assets - non-current 19,071 16,580 ------------ ------------ Total assets $ 3,728,268 $ 3,649,164 ============ ============ LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Trade accounts payable $ 9,280 $ 10,048 Current maturities of long-term debt 97,314 66,559 Accrued expenses 18,886 22,362 Deferred income 12,544 11,618 ------------ ------------ Total current liabilities 138,024 110,587 ------------ ------------ Long-term debt 1,455,869 1,457,526 Deferred income taxes 134,278 127,241 Other liabilities 8,457 7,724 ------------ ------------ Total liabilities 1,736,628 1,703,078 ------------ ------------ Stockholder's equity: Common stock, $0.01 par value, authorized 3,000 shares; 100 shares issued and outstanding at June 30, 2002 and December 31, 2001 -- -- Additional paid-in capital 2,278,660 2,222,317 Accumulated deficit (287,020) (276,231) ------------ ------------ Stockholder's equity 1,991,640 1,946,086 ------------ ------------ Total liabilities and stockholder's equity $ 3,728,268 $ 3,649,164 ============ ============
See accompanying notes to condensed consolidated financial statements. -8-

LAMAR MEDIA CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS)

Three Months ended Six Months ended June 30, June 30, 2002 2001 2002 2001 ----------- ----------- ----------- ----------- Net revenues $ 202,529 $ 191,788 $ 379,067 $ 362,173 ----------- ----------- ----------- ----------- Operating expenses Direct advertising expenses 66,632 61,315 133,859 122,851 General and administrative expenses 39,351 36,376 80,485 74,021 Depreciation and amortization 68,589 87,910 134,877 172,419 Gain on disposition of assets (81) (803) (170) (1,019) ----------- ----------- ----------- ----------- 174,491 184,798 349,051 368,272 ----------- ----------- ----------- ----------- Operating income (loss) 28,038 6,990 30,016 (6,099) Other expense (income) Interest income (166) (178) (387) (422) Interest expense 23,467 29,200 46,470 62,463 ----------- ----------- ----------- ----------- 23,301 29,022 46,083 62,041 ----------- ----------- ----------- ----------- Income (loss) before income tax expense (benefit) 4,737 (22,032) (16,067) (68,140) Income tax expense (benefit) 2,195 (4,556) (5,278) (18,518) ----------- ----------- ----------- ----------- Net income (loss) $ 2,542 $ (17,476) $ (10,789) $ (49,622) =========== =========== =========== ===========
See accompanying notes to condensed consolidated financial statements. -9-

LAMAR MEDIA CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS)

Six Months Ended June 30, 2002 2001 --------- --------- Cash flows from operating activities: Net loss $ (10,789) $ (49,622) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 134,877 172,419 Gain on disposition of assets (170) (1,019) Deferred tax benefit (136) (18,869) Provision for doubtful accounts 4,678 3,602 Changes in operating assets and liabilities: Decrease in: Receivables (20,147) (18,283) Prepaid expenses (13,482) (11,436) Other assets (560) (357) Increase (decrease) in: Trade accounts payable (768) 2,088 Accrued expenses (3,258) (15,754) Other liabilities (51) 145 Deferred income 772 196 --------- --------- Net cash provided by operating activities 90,966 63,110 --------- --------- Cash flows from investing activities: Acquisition of new markets (55,111) (225,325) Capital expenditures (35,430) (36,925) Proceeds from disposition of assets 1,636 3,334 --------- --------- Net cash used in investing activities (88,905) (258,916) --------- --------- Cash flows from financing activities: Debt issuance costs (1,062) (389) Contribution from parent -- 48,000 Principal payments on long-term debt (33,283) (2,375) Net borrowings under credit agreements 60,000 81,000 --------- --------- Net cash provided by financing activities 25,655 126,236 --------- --------- Net increase (decrease) in cash and cash equivalents 27,716 (69,570) Cash and cash equivalents at beginning of period 12,885 72,340 --------- --------- Cash and cash equivalents at end of period $ 40,601 $ 2,770 --------- --------- Supplemental disclosures of cash flow information: Cash paid for interest $ 46,694 $ 61,012 ========= ========= Cash paid for state and federal income taxes $ 1,652 $ 781 ========= ========= Parent company stock contributed for acquisitions $ 53,000 $ 29,000 ========= ========= Noncash Financing Activity: Note payable converted to contributed capital $ -- $ 287,500 ========= =========
See accompanying notes to condensed consolidated financial statements. -10-

LAMAR MEDIA CORP. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (IN THOUSANDS, EXCEPT FOR SHARE DATA) 1. Significant Accounting Policies The information included in the foregoing interim financial statements is unaudited. In the opinion of management all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of Lamar Media's financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with Lamar Media's consolidated financial statements and the notes thereto included in the 2001 Combined Form 10-K. Certain amounts in the prior year's condensed consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on previously reported results of operations. Certain footnotes are not provided for the accompanying financial statements as the information in notes 2, 3, 4, 5 and 7 to the condensed consolidated financial statements of Lamar Advertising Company included elsewhere in this report is substantially equivalent to that required for the condensed consolidated financial statements of Lamar Media Corp. Earnings per share data is not provided for the operating results of Lamar Media Corp. as it is a wholly-owned subsidiary of Lamar Advertising Company. -11-

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This discussion contains forward-looking statements. Actual results could differ materially from those anticipated by the forward-looking statements due to the risks and uncertainties described in the section of this report on Form 10-Q entitled "Note Regarding Forward-Looking Statements" and described in the 2001 Combined 10-K under the caption "Factors Affecting Future Operating Results." You should consider carefully each of these risks and uncertainties in evaluating the Company's and Lamar Media's financial condition and results of operations. LAMAR ADVERTISING COMPANY The following is a discussion of the consolidated financial condition and results of operations of Lamar Advertising Company for the six months and three months ended June 30, 2002 and 2001. This discussion should be read in conjunction with the consolidated financial statements of the Company and the related notes. RESULTS OF OPERATIONS We use EBITDA (earnings before interest, taxes, depreciation and amortization) as one measure to evaluate the operating performance of our business. EBITDA is not a measure of performance under generally accepted accounting principles and should be considered in addition to, but not as an alternative to or superior to other measures of financial performance prepared in accordance with generally accepted accounting principles. SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO SIX MONTHS ENDED JUNE 30, 2001 Net revenues increased $16.9 million or 4.7% to $379.1 million for the six months ended June 30, 2002 as compared to the same period in 2001. This increase was attributable to an increase in billboard net revenues of $13.9 million or 4.1%, and a $1.4 million increase in logo sign revenue, which represents an 8.2% increase over the prior year. Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $17.5 million or 8.9% for the six months ended June 30, 2002 as compared to the same period in 2001. This was primarily the result of additional operating expenses related to the operations of acquired outdoor advertising assets. EBITDA decreased $0.6 million or 0.4% to $164.6 million for the six months ended June 30, 2002 from $165.2 million for the same period in 2001. Depreciation and amortization expense decreased $37.7 million or 21.6% from $174.2 million for the six months ended June 30, 2001 to $136.5 million for the six months ended June 30, 2002 as a result of the Company's adoption of SFAS No. 142 "Goodwill and Other Intangible Assets", which eliminated the amortization expense for goodwill. Due to the above factors, operating income increased $36.3 million to $28.3 million for six months ended June 30, 2002 compared to an operating loss of $8.0 million for the same period in 2001. Interest expense decreased $14.8 million from $68.8 million for the six months ended June 30, 2001 to $54.0 million for the same period in 2002 as a result of lower interest rates for the six months ended June 30, 2002 as compared to the same period in 2001. There was an income tax benefit of $8.9 million for the six months ended June 30, 2002 as compared to an income tax benefit of $21.7 million for the same period in 2001. The decrease in income tax benefit of $12.8 million is primarily due to the increase in income before income taxes as a result of the Company's adoption of SFAS No. 142. The effective tax rate for the six months ended June 30, 2002 was approximately 35%, which is less than statutory rates due to permanent differences resulting from non-deductible expenses. As a result of the above factors, the Company recognized a net loss for the six months ended June 30, 2002 of $16.5 million, as compared to a net loss of $54.7 million for the same period in 2001. THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THREE MONTHS ENDED JUNE 30, 2001 Net revenues increased $10.7 million or 5.6% to $202.5 million for the three months ended June 30, 2002 as compared to the same period in 2001. Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $8.3 million or 8.5% for the three months ended June 30, 2002 as compared to the same period in 2001. -12-

EBITDA increased $2.5 million or 2.7% to $96.5 million for the three months ended June 30, 2002 from $94.0 million for the same period in 2001. For the three months ended June 30, 2002 same store net revenue increased 1.7% and same store EBITDA was even as compared to the same period in 2001. Same store is defined by the Company as outdoor markets owned and operated for twelve months or longer. Depreciation and amortization expense decreased $19.4 million or 21.8% from $88.8 million for the three months ended June 30, 2001 to $69.4 million for the three months ended June 30, 2002 as a result of the Company's adoption of SFAS No. 142 "Goodwill and Other Intangible Assets", which eliminated the amortization expense for goodwill. Due to the above factors, operating income increased $21.2 million to $27.2 million for three months ended June 30, 2002 from $6.0 million for the same period in 2001. Interest expense decreased $5.8 million from $33.0 million for the three months ended June 30, 2001 to $27.2 million for the same period in 2002 as a result of lower interest rates for the three months ended June 30, 2002 as compared to the same period in 2001. There was an income tax expense of $0.4 million for the three months ended June 30, 2002 as compared to an income tax benefit of $6.4 million for the same period in 2001. This change is primarily due to the increase in income before income taxes as a result of the Company's adoption of SFAS No. 142. The Company recognized a net loss for the three months ended June 30, 2002 of $0.3 million. The results for the three months ended June 30, 2002 were affected by the same factors as the six months ended June 30, 2002. Reference is made to the discussion of the six month results. LIQUIDITY AND CAPITAL RESOURCES The Company has historically satisfied its working capital requirements with cash from operations and revolving credit borrowings. Its acquisitions have been financed primarily with borrowed funds and the issuance of Class A common stock. During the six months ended June 30, 2002, the Company financed the cash portion of its acquisition activity of approximately $55 million with excess cash on hand. On January 11, 2002 the Company activated $200 million in new borrowings under the incremental facility of its bank credit agreement. The proceeds were used to reduce the balance of the revolving bank credit facility balance by $160 million and approximately $10 million was used for operations resulting in excess cash on hand of $30 million. Also on January 30, 2002, JPMorgan Chase issued a standby letter of credit of approximately $3.2 million to benefit American Casualty Insurance Company, the provider of the Company's general liability and workman's compensation coverage. This issuance reduces the Company's availability under its revolving bank credit facility. On March 31, 2002, in accordance with the Company's bank credit agreement, required quarterly principal payments of $15.75 million were made and commitments under the revolving facility of the bank credit agreement were reduced by $8.75 million per quarter. As of June 30, 2002 the Company had $328.9 million available under the revolving credit facility. The Company's net cash provided by operating activities increased $17.8 million for the six months ended June 30, 2002 due primarily to a decrease in net loss of $38.2 million and an increase in accrued expenses of $8.0 million. These changes were offset primarily by an increase in other assets of $6.5 million, an increase in prepaid expenses of $2.1 million, a decrease in accounts payable of $2.9 million and a decrease in noncash items of $17.6 million. The decrease in non cash items includes a decrease in depreciation and amortization of $37.7 million, offset by a decrease in the deferred income tax benefit of $18.2 million and an increase in the provision for doubtful accounts of $1.1 million. Net cash used in investing activities decreased $170.6 million from $260.5 million for the six months ended June 30, 2001 to $89.9 million for the same period in 2002. This decrease was due to a $171.4 million decrease in acquisitions of new markets. Net cash provided by financing activities for the six months ended June 30, 2002 is $37.2 million primarily due to $60.0 million in net borrowings under credit agreements offset by $33.3 million in scheduled principal payments of the Company's debt. -13-

In the future the Company has principal reduction obligations and revolver commitment reductions under its bank credit agreement. In addition it has fixed commercial commitments which consists of various operating leases for production facilities and sites upon which advertising structures are built. The leases expire at various dates and have varying options to renew and to cancel. These commitments are detailed as follows:

Payments Due by Period (in millions) Total Less Contractual Obligations at than 1 1 - 3 4 - 5 After 5 Obligations June 30, 2002 Year Years Years Years ----------- ---------------------- ---------- ----------- ----------- ---------- Long-Term debt $ 1,840.7 97.3 311.8 1,156.4 275.2 Billboard site and building leases 768.5 94.2 168.4 125.8 380.1 ---------------------- ---------- ----------- ----------- ---------- Total Payments due $ 2,609.2 191.5 480.2 1,282.2 655.3 ====================== ========== =========== =========== ==========
Amount of Commitment Expiration per Period (in millions) Total Amount Less Other Commercial Committed at than 1 1 - 3 4 - 5 After 5 Commitments June 30, 2002 Year Years Years Years ---------------- ------------------- ----------- ----------- ---------- ----------- Revolving credit facility (1) $ 332.5 35.0 183.8 113.7 0.0 =================== ----------- ----------- ---------- ----------- Standby Letter of Credit $ 3.6 0.3 0.0 3.3 0.0 =================== =========== =========== ========== ===========
(1) The Company had no outstanding balance at June 30, 2002. The Company believes that its current level of cash on hand, availability under its bank credit agreement and future cash flows from operations are sufficient to meet its operating needs through the year 2002. All debt obligations are on the Company's balance sheet. LAMAR MEDIA CORP. The following is a discussion of the consolidated financial condition and results of operations of Lamar Media for the six months and three months ended June 30, 2002 and 2001. This discussion should be read in conjunction with the consolidated financial statements of Lamar Media and the related notes. RESULTS OF OPERATIONS We use EBITDA (earnings before interest, taxes, depreciation and amortization) as one measure to evaluate the operating performance of our business. EBITDA is not a measure of performance under generally accepted accounting principles and should be considered in addition to, but not as an alternative to or superior to other measures of financial performance prepared in accordance with generally accepted accounting principles. SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO SIX MONTHS ENDED JUNE 30, 2001 Net revenues increased $16.9 million or 4.7% to $379.1 million for the six months ended June 30, 2002 as compared to the same period in 2001. This increase was attributable to an increase in billboard net revenues of $13.9 million or 4.1%, and a $1.4 million increase in logo sign revenue, which represents an 8.2% increase over the prior year. Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $17.5 million or 8.9% for the six months ended June 30, 2002 as compared to the same period in 2001. This was primarily the result of additional operating expenses related to the operations of acquired outdoor advertising assets. EBITDA decreased $0.6 million or 0.4% to $164.7 million for the six months ended June 30, 2002 from $165.3 million for the same period in 2001. Depreciation and amortization expense decreased $37.5 million or 21.8% from $172.4 million for the six months ended June 30, 2001 to $134.9 million for the six months ended June 30, 2002 as a result of Lamar Media's adoption of SFAS No. 142 "Goodwill and Other Intangible Assets", which eliminated the amortization expense for goodwill. Due to the above factors, operating income increased $36.1 million to $30.0 million for six months ended June 30, 2002 compared to an operating loss of $6.1 million for the same period in 2001. -14-

Interest expense decreased $16.0 million from $62.5 million for the six months ended June 30, 2001 to $46.5 million for the same period in 2002 as a result of lower interest rates for the six months ended June 30, 2002 as compared to the same period in 2001. There was an income tax benefit of $5.3 million for the six months ended June 30, 2002 as compared to an income tax benefit of $18.5 million for the same period in 2001. This change is primarily due to the increase in income before income taxes as a result of Lamar Media's adoption of SFAS No. 142. The effective tax rate for the six months ended June 30, 2002 was approximately 32.8% which is less than statutory rates due to permanent differences resulting from non-deductible expenses. As a result of the above factors, Lamar Media recognized a net loss for the six months ended June 30, 2002 of $10.8 million, as compared to a net loss of $49.6 million for the same period in 2001. THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THREE MONTHS ENDED JUNE 30, 2001 Net revenues increased $10.7 million or 5.6% to $202.5 million for the three months ended June 30, 2002 as compared to the same period in 2001. Operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $8.3 million or 8.5% for the three months ended June 30, 2002 as compared to the same period in 2001. EBITDA increased $2.4 million or 2.5% to $96.5 million for the three months ended June 30, 2002 from $94.1 million for the same period in 2001. Depreciation and amortization expense decreased $19.3 million or 22.0% from $87.9 million for the three months ended June 30, 2001 to $68.6 million for the three months ended June 30, 2002 as a result of Lamar Media's adoption of SFAS No. 142 "Goodwill and Other Intangible Assets", which eliminated the amortization expense for goodwill. Due to the above factors, operating income increased $21.0 million to $28.0 million for three months ended June 30, 2002 compared to $7.0 million for the same period in 2001. Interest expense decreased $5.7 million from $29.2 million for the three months ended June 30, 2001 to $23.5 million for the same period in 2002 as a result of lower interest rates for the three months ended June 30, 2002 as compared to the same period in 2001. There was a income tax expense of $2.2 million for the three months ended June 30, 2002 as compared to an income tax benefit of $4.6 million for the same period in 2001. This change is primarily due to the increase in income before income taxes as a result of Lamar Media's adoption of SFAS No. 142. As a result of the above factors, Lamar Media recognized net income for the three months ended June 30, 2002 of $2.5 million, as compared to a net loss of $17.5 million for the same period in 2001. -15-

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS Lamar Advertising Company and Lamar Media Corp. Lamar Advertising Company is exposed to interest rate risk in connection with variable rate debt instruments issued by its wholly-owned subsidiary, Lamar Media Corp. The Company does not enter into market risk sensitive instruments for trading purposes. The information below summarizes the Company's interest rate risk associated with its principal variable rate debt instruments outstanding at June 30, 2002. Loans under Lamar Media's bank credit agreement bear interest at variable rates equal to the JPMorgan Chase Prime Rate or LIBOR plus the applicable margin. Because the JPMorgan Chase Prime Rate or LIBOR may increase or decrease at any time, the Company and Lamar Media are exposed to market risk as a result of the impact that changes in these base rates may have on the interest rate applicable to borrowings under the bank credit agreement. Increases in the interest rates applicable to borrowings under the bank credit agreement would result in increased interest expense and a reduction in the Company's and Lamar Media's net income and total free cash flow. At June 30, 2002, there was approximately $1,007 million of aggregate indebtedness outstanding under the bank credit agreement, or approximately 57.8% of the Company's and 69.2% of Lamar Media's outstanding long-term debt on that date, bearing interest at variable rates. The aggregate interest expense for the six months ended June 30, 2002 with respect to borrowings under the bank credit agreement was $21.5 million, and the weighted average interest rate applicable to borrowings under these credit facilities during the six months ended June 30, 2002 was 3.9%. Assuming that the weighted average interest rate was 200-basis points higher (that is 5.9% rather than 3.9%), then the Company's and Lamar Media's June 30, 2002 interest expense would have been approximately $10.3 million higher resulting in a $6.3 million decrease in the Company's and Lamar Media's six months ended June 30, 2002 net income and total free cash flow. The Company attempts to mitigate the interest rate risk resulting from its variable interest rate long-term debt instruments by also issuing fixed rate long-term debt instruments and maintaining a balance over time between the amount of the Company's variable rate and fixed rate indebtedness. In addition, the Company has the capability under the bank credit agreement to fix the interest rates applicable to its borrowings at an amount equal to LIBOR plus the applicable margin for periods of up to twelve months, which would allow the Company to mitigate the impact of short-term fluctuations in market interest rates. In the event of an increase in interest rates, the Company may take further actions to mitigate its exposure. The Company cannot guarantee, however, that the actions that it may take to mitigate this risk will be feasible or that, if these actions are taken, that they will be effective. -16-

PART II - OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Company held its annual meeting of stockholders on Thursday, May 23, 2002. Kevin P. Reilly, Jr., Sean E. Reilly, Keith A. Istre, Charles W. Lamar, III, Gerald H. Marchand, Anna Reilly Cullinan, T. Everett Stewart, Jr., Stephen P. Mumblow, John Maxwell Hamilton and Thomas Reifenheiser were elected as directors of the Company, each to hold office until the next annual meeting of stockholders or until his or her successor has been elected and qualified. The stockholders also approved an amendment to the Company's 1996 Equity Incentive Plan to increase the number of shares of the Company's Class A common stock available for issuance from 5,000,000 to 8,000,000 shares. The results of voting at the Company's annual meeting of stockholders were as follows: PROPOSAL NO. 1 (ELECTION OF DIRECTORS) Votes Votes Nominee For Withheld ------- --- -------- Kevin P. Reilly, Jr. 226,091,065 14,830,915 Sean E. Reilly 226,084,865 14,837,115 Keith A. Istre 239,622,325 1,299,655 Charles W. Lamar, III 239,622,325 1,299,655 Gerald H. Marchand 239,622,325 1,299,655 Anna Reilly Cullinan 226,083,555 14,838,425 T. Everett Stewart, Jr. 239,622,015 1,299,965 Stephen P. Mumblow 239,839,815 1,082,165 John Maxwell Hamilton 239,839,815 1,082,165 Thomas Reifenheiser 239,839,815 1,082,165 PROPOSAL NO. 2 (AMENDMENT TO THE 1996 EQUITY INCENTIVE PLAN)

For Against Abstain --- ------- ------- 192,133,214 48,746,822 41,944
-17-

PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) The Exhibits filed as part of this report are listed on the Exhibit Index immediately following the signature page hereto, which Exhibit Index is incorporated herein by reference. (b) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LAMAR ADVERTISING COMPANY DATED: August 12, 2002 BY: /s/ Keith A. Istre ------------------------------- Chief Financial and Accounting Officer, Treasurer and Director LAMAR MEDIA CORP. DATED: August 12, 2002 BY: /s/ Keith A. Istre ------------------------------- Chief Financial and Accounting Officer, Treasurer and Director -18-

INDEX TO EXHIBITS

EXHIBIT NUMBER DESCRIPTION 2.1 Agreement and Plan of Merger dated as of July 20, 1999 among Lamar Media Corp., Lamar New Holding Co., and Lamar Holdings Merge Co. Previously filed as exhibit 2.1 to the Company's Current Report on Form 8-K filed on July 22, 1999 (File No. 0-30242) and incorporated herein by reference. 3.1 Certificate of Incorporation of Lamar New Holding Co. Previously filed as exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 1999 (File No. 0-20833) filed on August 16, 1999 and incorporated herein by reference. 3.2 Certificate of Amendment of Certificate of Incorporation of Lamar New Holding Co. (whereby the name of Lamar New Holding Co. was changed to Lamar Advertising Company). Previously filed as exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 1999 (File No. 0-20833) filed on August 16, 1999 and incorporated herein by reference. 3.3 Certificate of Amendment of Certificate of Incorporation of Lamar Advertising Company. Previously filed as Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2000 (File No. 0-30242) filed on August 11, 2000 and incorporated herein by reference. 3.4 Certificate of Correction of Certificate of Incorporation of Lamar Advertising Company. Previously filed as Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2000 (File No. 0-30242) filed on November 14, 2000 and incorporated herein by reference. 3.5 Bylaws of the Lamar Advertising Company. Previously filed as Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 1999 (File No. 0-20833) filed on August 16, 1999 and incorporated herein by reference. 3.6 Amended and Restated Bylaws of Lamar Media Corp. Previously filed as exhibit 3.1 to Lamar Media's Quarterly Report on Form 10-Q for the period ended September 30, 1999 (File No. 1-12407) filed on November 12, 1999 and incorporated herein by reference. 99.1 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.

Exhibit 99.1 LAMAR ADVERTISING COMPANY LAMAR MEDIA CORP. CERTIFICATION OF PERIODIC FINANCIAL REPORT PURSUANT TO 18 U.S.C. SECTION 1350 Each of the undersigned officers of Lamar Advertising Company ("Lamar") and Lamar Media Corp. ("Media") certifies, under the standards set forth in and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the combined Quarterly Report on Form 10-Q of Lamar and Media for the quarter ended June 30, 2002 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in that combined Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Lamar and Media.

Dated: August 12, 2002 By: /s/Kevin P. Reilly, Jr. -------------------------------------------------- Kevin P. Reilly, Jr. Chief Executive Officer, Lamar Advertising Company Chief Executive Officer, Lamar Media Corp. Dated: August 12, 2002 By: /s/Keith A. Istre -------------------------------------------------- Keith A. Istre Chief Financial Officer, Lamar Advertising Company Chief Financial Officer, Lamar Media Corp.