Jim Taiclet, American Tower's Chief Executive Officer stated, "The solid second quarter results delivered by our domestic and international teams, including the successful completion of our acquisition of XCEL Telecom in India, provide us with the confidence to reaffirm our 2009 outlook for revenue, Adjusted EBITDA and cash provided by operating activities. Further, trends such as the upcoming roll out of 4G networks including LTE and WiMAX in the US provide further insight into the drivers of long-term tower industry growth. These strong financial and operational trends are the foundation of our commitment to pursue growth initiatives both in the US and abroad, as well as to redeploy our excess cash to shareholders through our stock repurchase program."

Operating Highlights

American Tower generated the following operating results for the quarter ended June 30, 2009 (unless otherwise indicated, all comparative information is presented against the quarter ended June 30, 2008):

Total revenues increased 7.5% to $423.4 million, and rental and management segment revenues increased 5.8% to $406.8 million. Rental and management segment revenue growth was negatively impacted by approximately 2.6% as a result of fluctuations in foreign currency exchange rates and 1.1% as a result of straight-line revenue recognition. Excluding the impacts of fluctuations in foreign currency exchange rates and straight-line revenue recognition, our Core Growth in rental and management segment revenue was 9.5%. Rental and Management Segment Gross Margin increased 7.4% to $318.0 million, and network development services segment revenue and Gross Margin increased to $16.6 million and $6.4 million, respectively.

Total selling, general, administrative and development expense was $49.9 million. The Company's selling, general, administrative and development expense for the quarter included $12.8 million of non-cash stock-based compensation expense and an increase of approximately $4.8 million of bad debt expense. For the quarter ended June 30, 2008, selling, general, administrative and development expense included a one-time reduction related to payroll tax expense of approximately $3.1 million.

Adjusted EBITDA increased 5.5% to $287.3 million, and Adjusted EBITDA Margin was 68%. In addition to items noted above relating to our selling, general, administrative and development expense, Adjusted EBITDA growth was negatively impacted by approximately 1.9% as a result of fluctuations in foreign currency exchange rates and 0.8% as a result of straight-line revenue and expense recognition. Excluding the impacts of fluctuations in foreign currency exchange rates and straight-line revenue recognition, our Core Growth in Adjusted EBITDA was 8.2%.

Operating income was $166.4 million and net income was $56.3 million. Net income per basic and diluted common share was $0.14. Net income was negatively impacted by certain discrete items in the Company's tax provision, which resulted in an effective tax rate of approximately 50% for the three months ended June 30, 2009. Based on its outlook for 2009, the Company estimates that its effective tax rate for the full year will be approximately 42% to 44%.

Investing Highlights

During the quarter ended June 30, 2009, cash provided by operating activities of $203.6 million, less $64.2 million in capital expenditures, resulted in Free Cash Flow of $139.4 million. Capital expenditures included $11.0 million for capital improvements and corporate capital expenditures, $35.8 million for the construction of new communications sites, $8.5 million for the purchase of land under our towers and $8.9 million for the augmentation of existing sites to accommodate new equipment. Separately, the Company spent $92.1 million on acquisitions, including our previously announced acquisition of XCEL Telecom Private Limited in India. During the quarter ended June 30, 2009, the Company completed the construction of 212 communications sites and purchased 1,667 communications sites. In addition, subsequent to the end of the second quarter, the Company acquired 230 communications sites in Brazil.

During the quarter ended June 30, 2009, the Company repurchased a total of 2.2 million shares of its Class A common stock for approximately $67.8 million pursuant to its stock repurchase program. As of July 24, 2009, the Company had repurchased approximately 17.5 million shares of its Class A common stock for approximately $641.2 million under its $1.5 billion share repurchase program announced in March 2008, which includes approximately 1.2 million shares of Class A common stock repurchased for approximately $38.2 million subsequent to June 30, 2009. The Company expects to continue to manage the pacing of the program in the future in response to general market conditions and other relevant factors.

Please refer to Non-GAAP and Defined Financial Measures on page 4 for definitions of Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Core Growth. For additional financial information, including reconciliations to GAAP measures, please refer to the supplemental schedules of selected financial information on pages 9 through 13.

2009 Outlook

The following estimates are based on a number of assumptions that management believes to be reasonable, and reflect the Company's expectations as of July 29, 2009. Actual results may differ materially from these estimates as a result of various factors, and we refer you to the cautionary language regarding "forward-looking" statements included in this press release when considering this information. In particular, we note that if the recent volatility in foreign currency markets continues, specifically with respect to the Mexican Peso and Brazilian Real, actual results for 2009 could differ materially from the estimates set forth below. In addition, if the lack of credit availability continues, it may adversely affect the ability of certain of our customers to timely meet their obligations to the Company.

The Company's 2009 outlook is based on the following average foreign exchange rates for the second half of 2009: (a) 13.75 Mexican Pesos to 1.00 US Dollar; and (b) 2.00 Brazilian Reais to 1.00 US Dollar. Our operations in Mexico and Brazil comprised approximately 9% and 5%, respectively, of our rental and management segment revenues for the three months ended June 30, 2009.

  ($ in millions)                                                                   Full Year 2009           Rental and management segment revenue (1)                                         $1,640    to    $1,665   Rental and Management Segment Gross Margin (1)(2)                                 1,277     to    1,297                                                                                                               Network development services segment revenue                                      35        to    50       Network Development Services Segment Gross Margin (2)                             15        to    21                                                                                                                  Adjusted EBITDA (1)(2)                                                            1,161     to    1,185                                                                                                               Depreciation, amortization and accretion                                          410       to    420      Interest expense                                                                  255       to    245      Income from continuing operations                                                 235       to    247                                                                                                                 Cash provided by operating activities                                             838       to    878      Payments for purchase of property and equipment and construction activities (3)   220       to    255       -------------------------------------------------------------------------------  

The following table reflects the estimated impact of fluctuations in foreign currency exchange rates and straight-line revenue and expense recognition on rental and management segment revenue and Adjusted EBITDA outlook:

  Rental and management segment revenue growth components:                   2009 Midpoint   Core rental and management segment revenue growth (2)                      10.0  %         Estimated impact of fluctuations in foreign currency exchange rates        (2.0  %)        Impact of non-cash straight-line revenue recognition (1)                   (1.2  %)        Total rental and management segment revenue growth                         6.8   %                                                                                                    Adjusted EBITDA growth components:                                         2009 Midpoint   Core Adjusted EBITDA growth (2)                                            10.2  %         Estimated impact of fluctuations in foreign currency exchange rates        (1.3  %)        Net impact of non-cash straight-line revenue and expense recognition (1)   (1.5  %)        Total Adjusted EBITDA growth                                               7.4   %          -------------------------------------------------------------------------------  

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  (1)   Outlook for rental and management segment revenue includes an estimated decrease in non-cash straight-line revenues of approximately $14 million in 2009 from the full year 2008. (For additional information on straight-line revenues, we refer you to the information contained in the section entitled "Revenue Recognition" of note 1, "Business and Summary of Significant Accounting Policies" within the notes to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2008.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (2)   See Non-GAAP and Defined Financial Measures below.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (3)   Outlook for capital expenditures includes (a) $45 million for capital improvements and corporate expenditures; (b) $30 million to $35 million for the redevelopment of existing communications sites; (c) $30 million to $40 million for ground lease purchases; (d) $115 million to $135 million for the construction of approximately 900 to 1,100 new communications sites and for the installation of shared back-up power generators at certain of our tower sites.                                                                    -------------------------------------------------------------------------------  

Conference Call Information

American Tower will host a conference call today at 8:30 a.m. ET to discuss its second quarter 2009 financial results and the Company's outlook for the full year 2009. Supplemental materials for the call will be available on the Company's website www.americantower.com. The conference call dial-in numbers are as follows:

    US/Canada dial-in: (877) 235-9047         International dial-in: (706) 645-9644     Passcode: 18471792                       -------------------------------------------------------------------------------  

A replay of the call will be available from 10:30 a.m. ET July 29, 2009 until 11:59 p.m. ET August 13, 2009. The replay dial-in numbers are as follows:

    US/Canada dial-in: (800) 642-1687         International dial-in: (706) 645-9291     Passcode: 18471792                       -------------------------------------------------------------------------------  

American Tower will also sponsor a live simulcast of the call on its website, www.americantower.com. When available, a replay of the call will be available on the Company's website.

About American Tower

American Tower is a leading independent owner, operator and developer of broadcast and wireless communications sites. American Tower owns and operates approximately 26,000 communications sites in the United States, Mexico, Brazil and India. For more information about American Tower, please visit www.americantower.com.

Non-GAAP and Defined Financial Measures

In addition to the results prepared in accordance with generally accepted accounting principles (GAAP) provided throughout this press release, the Company has presented the following non-GAAP and defined financial measures: Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Core Growth. The Company defines Rental and Management Segment Gross Margin as operating income before depreciation, amortization and accretion, other operating expenses, non-cash stock-based compensation expense, corporate expenses, international business development expenses, rental and management segment overhead, network development services segment overhead, network development services segment operating expenses, network development services segment revenue, plus interest income, TV Azteca, net. The Company defines Network Development Services Segment Gross Margin as operating income before depreciation, amortization and accretion, other operating expenses, non-cash stock-based compensation expense, corporate expenses, international business development expenses, network development services segment overhead, rental and management segment overhead, rental and management segment operating expenses, and rental and management segment revenue. The Company defines Adjusted EBITDA as operating income before depreciation, amortization and accretion, other operating expenses, and non-cash stock-based compensation expense, plus interest income, TV Azteca, net. The Company defines Adjusted EBITDA Margin as a percentage of Adjusted EBITDA over total revenue. The Company defines Free Cash Flow as cash provided by operating activities less payments for purchase of property and equipment and construction activities. The Company defines Core Growth in rental and management segment revenue and Adjusted EBITDA as the increase or decrease, expressed as a percentage, resulting from a comparison of financial results for a current period with corresponding financial results for the corresponding period in a prior year, in each case, excluding the impact of straight-line revenue and expense recognition and foreign currency fluctuations. These measures are not intended to substitute for other measures of financial performance determined in accordance with GAAP. Rather, they are presented as additional information because management believes they are useful indicators of the current financial performance of the Company's core businesses. The Company believes that these measures can assist in comparing company performances on a consistent basis irrespective of depreciation and amortization or capital structure. Depreciation and amortization can vary significantly among companies depending on accounting methods, particularly where acquisitions or non-operating factors including historical cost bases are involved. Notwithstanding the foregoing, the Company's measures of Rental and Management Segment Gross Margin, Network Development Services Segment Gross Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Core Growth may not be comparable to similarly titled measures used by other companies.

Cautionary Language Regarding Forward-Looking Statements

This press release contains "forward-looking statements" concerning the Company's goals, beliefs, expectations, strategies, objectives, plans, future operating results and underlying assumptions, and other statements that are not necessarily based on historical facts. Examples of these statements include, but are not limited to statements regarding our full year 2009 outlook, our stock repurchase programs, the financial strength of certain of our customers and foreign currency exchange rates. Actual results may differ materially from those indicated in our forward-looking statements as a result of various important factors, including: (1) decrease in demand for communications sites would materially and adversely affect our operating results and we cannot control that demand; (2) if our wireless service provider customers consolidate or merge with each other to a significant degree, our growth, revenue and ability to generate positive cash flows could be adversely affected; (3) substantial leverage and debt service obligations may adversely affect us; (4) restrictive covenants in the loan agreement for the revolving credit facility and term loan, the indentures governing our debt securities, and the loan agreement related to our securitization transaction could adversely affect our business by limiting flexibility; (5) we could suffer adverse tax and other financial consequences if taxing authorities do not agree with our tax positions, or we are unable to utilize our net operating losses; (6) due to the long-term expectations of revenue from tenant leases, the tower industry is sensitive to the creditworthiness and financial strength of its tenants; (7) our foreign operations are subject to economic, political, and other risks that could adversely affect our revenues or financial position, including risks associated with foreign currency exchange rates; (8) a substantial portion of our revenue is derived from a small number of customers; (9) we anticipate that we may need additional financing to fund our stock repurchase programs, to refinance our existing indebtedness and to fund future growth and expansion initiatives; (10) new technologies could make our tower leasing business less desirable to potential tenants and result in decreasing revenues; (11) we could have liability under environmental laws; (12) our business is subject to government regulations and changes in current or future laws or regulations could restrict our ability to operate our business as we currently do; (13) increasing competition in the tower industry may create pricing pressures that may adversely affect us; (14) if we are unable to protect our rights to the land under our towers, it could adversely affect our business and operating results; (15) if we are unable or choose not to exercise our rights to purchase towers that are subject to lease and sublease agreements at the end of the applicable period, our cash flows derived from such towers would be eliminated; (16) our towers may be affected by natural disasters and other unforeseen damage for which our insurance may not provide adequate coverage; (17) our costs could increase and our revenues could decrease due to perceived health risks from radio emissions, especially if these perceived risks are substantiated; and (18) our historical stock option granting practices are subject to ongoing governmental proceedings, which could result in fines, penalties or other liability. For other important factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the information contained in Item 1A of our Form 10-Q for the quarter ended March 31, 2009 under the caption "Risk Factors." We undertake no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.