Live Nation Reports Fourth Quarter and Full Year 2007 Financial Results

Live Nation Reports Fourth Quarter and Full Year 2007 Financial Results

- Continues to Execute on Vertically Integrated Global Live Music Platform Strategy -

- Improved North American Music Performance Drives 2007 Adjusted OIBDAN to $181 Million, an increase of 16%, and Operating Income to $82.1 Million -

LOS ANGELES, Feb. 28 /PRNewswire-FirstCall/ -- Live Nation (NYSE:LYV) , the world's largest live music company, announced today its financial results for the three and twelve months ended December 31, 2007.

For the fourth quarter of 2007, the company reported revenue of $1.0 billion, a decrease of $45.2 million, or 4.3%, as compared to the fourth quarter of 2006 driven primarily by the timing of large music tours during the period. Adjusted OIBDAN was $32.6 million, an increase of $11.8 million, or 56.5%, as a result of improved results in North American and International Music. These improvements were partially offset by the expected decline in Global Artists due to the timing and number of large music tours in 2007 as compared to 2006. Operating income was $4.2 million, an improvement from an operating loss of $14.7 million in 2006. Net loss improved 44.6% to a loss of $18.4 million, or a loss of $0.25 per share.

For the full year 2007, the company reported revenue of $4.2 billion, an increase of $473.3 million, or 12.8%, as compared to 2006 driven by increases in revenue in North American and International Music primarily driven by acquisitions. Adjusted OIBDAN was $180.9 million, an increase of 15.9%, as a result of improved results in North American and International Music and Global Theater. These improvements were partially offset by a decline in Global Artists due to an expected reduction in touring artists during 2007. Operating income was $82.1 million, an increase of $49.0 million, or 148.0%. Net loss was $11.9 million, or a loss of $0.17 per share, compared to a loss of $31.4 million, or a loss of $0.48 per share in 2006. As of December 31, 2007, the company had free cash of $84.7 million as compared to $36.1 million at December 31, 2006.

Michael Rapino, President and Chief Executive Officer of Live Nation, commented: "During 2007, we made substantial progress in executing on our strategic plan to fully capitalize on our global leadership position in live music. We consolidated our global network and strengthened our core business through changes in how we drive revenue, manage our costs and measure our success. Our improved performance reflects early returns from the investments we made in transitioning our core business into a more focused, profit-driven organization. We also made substantial progress in building an integrated platform aimed at further strengthening and monetizing the relationship between artists, fans and sponsors -- before, during and after live events. In the year ahead, we remain focused on driving our core business and implementing our plan to capitalize on the transformation of the global music industry."

"We currently expect 2008 to be another healthy and growing period for the live music industry," Rapino continued. "As a result of our efforts to streamline our core business and expand our revenue streams, we believe we are very well positioned to benefit from the industry's growth. Among other initiatives, we will continue to build out our ticketing and digital media presence as we prepare to take control of our tickets beginning in 2009. We believe the economics of our ticketing business are compelling, given the growth opportunities we plan to pursue and the relatively limited investment we are making in our infrastructure as a result of our partnership with CTS Eventim. We will also focus on signing additional artists to our Live Nation Artists business and expanding our relationships with major corporate sponsors. As the year unfolds, we expect to increasingly demonstrate the benefits of our integrated model, as we continue to execute on our strategic plan."

   Recent Highlights:    -- Successfully executed initiatives to improve performance of North      American Amphitheaters, delivering $67.7 million in 2007 pro forma      Amphitheater Adjusted OIBDAN, an increase of 49% over 2006, and      $38.4 million in pro forma Amphitheater Operating Income.   -- Expanded venue and distribution platform through the addition of five      mid-sized music venues and one new House of Blues(R) club in three new      markets in North America in addition to market expansion in Canada and      entry into Dubai.   -- Entered into long-term agreement with CTS Eventim that will enable the      company to launch its own ticketing business and begin selling tickets      for its 2009 events.  The new ticketing platform will allow the company      to control customer data, to create enhanced ticket-based concert      products, drive its e-commerce audience and increase advertising and      sponsorship revenue.   -- Entered into ten-year diversified rights and touring agreement with      Madonna, the founding artist for the company's Live Nation Artists      division.  The relationship encompasses Madonna's future music and      music-related businesses, including the exploitation of the Madonna      brand, touring, merchandising, fan club/website, DVDs, music-related      television and film projects, distribution of recorded music and      associated sponsorship agreements.   -- Completed divestiture in 2007 of the company's theatrical business in      Chicago and in early 2008 of substantially all of its remaining North      American theatrical business for total gross proceeds of $150 million.      These sales further focus the company on its core music operations.   -- Entered into strategic marketing alliance with Citi(R) that capitalizes      on the company's fully integrated music platform, including concerts,      online ticketing and access to Live Nation Artists, to deliver a      uniquely comprehensive music experience to Citi(R) customers in the      United States.     Pro Forma Financial Highlights (unaudited):                                Total Company                                Pro Forma(1)   (in thousands)  Three Months Ended,           Twelve Months Ended,                 12/31/2007 12/31/2006    %    12/31/2007  12/31/2006   %   Revenue       $1,041,612 $1,168,157 (10.8%) $4,386,137  $4,409,228 (0.5%)   Adjusted    OIBDAN          $34,258    $29,229  17.2%    $197,663    $190,057  4.0%   % Margin            3.3%       2.5%     --        4.5%        4.3%    --   Operating    Income (Loss)    $5,832    ($8,273)    **     $98,871     $55,737 77.4%   % Margin            0.6%      (0.7%)    --        2.3%        1.3%    --    (1) Includes the divestiture of a portion of our North American sports       representation business and our UK sports representation business       throughout 2006, the acquisition of CPI in May 2006, the acquisition       of Trunk in June 2006, the acquisition of Musictoday in September       2006, the acquisition of House of Blues in November 2006, the       acquisition of Gamerco in December 2006, the divestiture of Donington       Racetrack in January 2007, the divestiture of the remaining stake in       Phantom - The Vegas Spectacular in March 2007, the divestiture of the       Nashville amphitheater in April 2007, the divestiture of Hammersmith       Apollo and the Forum in June 2007, the acquisition of the remaining       50% interest in House of Blues Concerts Canada and consolidation of       those results in June 2007, the consolidation of Academy Music Group's       financial results which occurred in July 2007, the sale of selected       Mean Fiddler venues in August 2007, the sale of the Odeon venue in       August 2007, the acquisition of Anthill Trading in October 2007, the       disposition of Broadway in Chicago and the Oriental Theater in       December 2007 and the acquisition of Signatures Network in December       2007 as if all of these transactions were completed on the first day       of the period presented.    ** Variance is not meaningful     Fourth Quarter    The decrease in revenue on a pro forma basis was primarily due to:   -- reduction in touring revenue in our Global Artists segment,   -- decreased revenue in our North American Music segment driven by a      reduction in the number of amphitheater events, and   -- reduction in International Music due to shut-down of The Point in      Ireland for expansion in August 2007 (the venue is expected to re-open      in early 2009),   -- offset by increased revenue in our International Music segment due to      an increase in the number of events and attendance.     The increase in Adjusted OIBDAN on a pro forma basis was primarily due to:   -- improved North American Music amphitheater operations and cost savings      realized from the 2006 House of Blues acquisition,   -- higher results for International Music promotions, and   -- reduction in operating expenses due to employee bonus conversion from      stock to cash,   -- partially offset by the shut-down of The Point in Ireland for      expansion, and   -- Global Artists reductions due to reduced touring activity and increased      costs to build the Live Nation Artists platform.    

The increase in operating income on a pro forma basis was primarily due to:

   -- increased Adjusted OIBDAN as described above, and   -- increased gain on sale of operating assets due primarily to the sale of      our Chicago theatrical business,   -- partially offset by an increase in non-cash compensation expense during      the quarter.     Full Year 2007    The slight decrease in revenue on a pro forma basis was primarily due to:   -- reduced revenue in our North American Music segment due to fewer events      in our amphitheaters,   -- decreased revenue from reduced touring activity in Global Artists, and   -- reduction in International Music due to shut-down of The Point for      expansion,   -- offset by increased revenue from our International Music operations      from increased promotion events and attendance and improved festival      results.     The increase in Adjusted OIBDAN on a pro forma basis was primarily due to:   -- improved North American Music amphitheater operations and cost savings      realized from the 2006 House of Blues acquisition, and   -- improved International Music promotion and festival operations,   -- offset by reduced results in North American Music arena and third-party      events,   -- reduction due to the shut-down of The Point for expansion, and   -- Global Artists reductions due to reduced touring activity and increased      costs to build the Live Nation Artists platform.    

The increase in operating income on a pro forma basis was primarily due to:

   -- increased Adjusted OIBDAN as described above, and   -- higher gain on sale of operating assets in 2007,   -- partially offset by an increase in non-cash compensation expense during      the year.     North American Music:                                 Pro Forma(2)   (in thousands)  Three Months Ended,          Twelve Months Ended,                 12/31/2007  12/31/2006  %    12/31/2007  12/31/2006     %   Revenue         $463,271  $479,187  (3.3%)  $2,013,959 $2,063,329  (2.4%)   Adjusted    OIBDAN % Margin $14,857   ($5,779)    **      $77,293    $52,959  45.9%                       3.2%     (1.2%)    --         3.8%       2.6%     --   Operating Income    (Loss)         ($13,252) ($22,030) 39.8%      $16,138   ($33,945)    **   %Margin            (2.9%)    (4.6%)    --         0.8%      (1.6%)    --    (2)  Includes the acquisition of House of Blues in November 2006, the        divestiture of the Nashville amphitheater in April 2007, the        acquisition of the remaining 50% interest in House of Blues Concerts        Canada and consolidation of those results in June 2007 and the sale        of the Odeon club in August 2007 as if all of these transactions were        completed on the first day of the period presented.    ** Variance is not meaningful     Fourth Quarter  

North American Music pro forma revenue decreased due to fewer events at our amphitheaters, consistent with our strategy to reduce unprofitable, low-attendance events, partially offset by higher arena revenues based on higher attendance and ticket prices and incremental revenues from several new mid-sized venues including the Dodge Theatre, the Hollywood Palladium and The Fillmore Miami Beach at the Jackie Gleason Theater.

Pro forma Adjusted OIBDAN increased due to improved amphitheater operations, cost savings realized from the 2006 acquisition of House of Blues and bonus payments for certain employees that will be paid in stock in lieu of cash. These increases were partially offset by reduced arena and third-party promotion activity results.

The increase in pro forma operating income is primarily a result of the improvement in Adjusted OIBDAN discussed above partially offset by an increase in non-cash compensation expense for bonuses to be paid in stock.

   International Music:                                Pro Forma(3)   (in thousands) Three Months Ended,          Twelve Months Ended,                 12/31/2007 12/31/2006   %    12/31/2007  12/31/2006    %   Revenue       $304,513    $218,245  39.5%  $1,088,339   $909,593   19.7%   Adjusted    OIBDAN        $19,547     $15,674  24.7%     $82,912    $77,137    7.5%   % Margin          6.4%        7.2%     --        7.6%       8.5%      --   Operating    Income (Loss) $13,034      $8,611  51.4%     $80,885    $56,981   42.0%   % Margin          4.3%        3.9%     --        7.4%       6.3%      --    (3)  Includes the acquisition of Gamerco in December 2006, the divestiture        of Hammersmith Apollo and the Forum in June 2007, the consolidation        of Academy Music Group's financial results which occurred in July        2007 and the sale of selected Mean Fiddler venues in August 2007 as        if all of these transactions were completed on the first day of the        period presented.      Fourth Quarter  

International Music pro forma revenue increased due to an increase in revenue from our European operations driven by increased promotion activity in Italy, Finland, Spain, Norway and Holland and stronger results for several festivals in the United Kingdom. Partially offsetting these increases was a decline in revenue from the shut-down of The Point for expansion.

Pro forma Adjusted OIBDAN increased due to stronger results at several of our festivals in the United Kingdom and improved promotion activity in several European countries, partially offset by a reduction due to the shut-down of The Point for expansion.

The increase in pro forma operating income for International Music was due to the increase in Adjusted OIBDAN as noted above.

                                Pro Forma(4)   (in thousands)  Three Months Ended,          Twelve Months Ended,                  12/31/2007 12/31/2006   %    12/31/2007  12/31/2006  %   Revenue         $165,227   $328,798 (49.7%)  $783,118    $911,345 (14.1%)   Adjusted OIBDAN   $1,895    $22,013 (91.4%)   $15,639     $45,382 (65.5%)   % Margin            1.1%       6.7%     --       2.0%        5.0%     --   Operating Income    (Loss)          ($8,928)   $17,439     **     (7,700)     37,506     **   % Margin           (5.4%)      5.3%     --      (1.0%)       4.1%     --    (4)  Includes the acquisition of CPI in May 2006, the acquisition of Trunk        in June 2006, the acquisition of Musictoday in September 2006, the        acquisition of Anthill in October 2007 and the acquisition of        Signatures in December 2007 as if all of these transactions were        completed on the first day of the period presented.    ** Variance is not meaningful      Fourth Quarter  

Global Artists revenue decreased due to a decline in global touring revenue driven by a decline in the average ticket price and the timing and mix of global tours in 2007.

Adjusted OIBDAN decreased due to a decline in global touring activity during 2007 along with the investment made in building the Live Nation Artists division during the period.

The increased operating loss was a result of a decline in global tour activity and the increased amortization expense for intangible assets related to our acquisition of CPI and artist rights agreements.

   Global Digital:    (in thousands)   Three Months Ended,          Twelve Months Ended,                  12/31/2007   12/31/2006   %   12/31/2007  12/31/2006   %   Revenue          $2,324       $3,682  (36.9%)  $11,358    $8,893   27.7%   Adjusted OIBDAN ($2,443)       ($880) 177.6%   ($5,877)  ($5,579)   5.3%   % Margin        (105.1%)      (23.9%)     --    (51.7%)   (62.7%)     --   Operating Income    (Loss)         ($4,354)     ($1,057) 311.9%   (10,460)   (6,102)  71.4%   % Margin        (187.3%)      (28.7%)     --    (92.1%)   (68.6%)     --      Fourth Quarter  

Global Digital revenue decreased slightly due to timing of sponsorship revenues.

Adjusted OIBDAN decreased due to increased salary related to new staff, increased maintenance and consultant expenses related to our internal information technology and our website management.

Operating loss increase was due to the increased salary, maintenance and consultant expenses related to our internal information technology and our website management and higher depreciation costs for systems completed and in operation.

About Live Nation:

Live Nation is the future of the music business. With the most live concerts, music venues and festivals in the world and the most comprehensive concert search engine on the web, Live Nation is revolutionizing the music industry: onstage and online. Headquartered in Los Angeles, California, Live Nation is listed on the New York Stock Exchange, trading under the symbol "LYV".

Conference Call: The company will host a teleconference today, February 28th, 2008 at 5:00 p.m. Eastern Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321- 1019 (Int'l) and referencing passcode 36254047. To access the call via webcast, please visit the Investor Relations section of the company's website at http://www.livenation.com/ under "About Us".

Forward Looking Statements, Non-GAAP Financial Measures and Reconciliations:

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the potential health and growth of the live music industry in 2008; Live Nation's competitive position within the industry and its potential to benefit from that anticipated growth; the company's efforts to build out its ticketing and e-commerce businesses, and the potential economics and growth opportunities related to those businesses; the company's intention to sign additional artists to its Live Nation Artists business; and the expectation that the company will expand its relationships with major corporate sponsors. Live Nation wishes to caution you that there are some known and unknown factors that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but not limited to operational challenges in achieving strategic objectives and executing on the company's plans, the risk that the company's markets do not evolve as anticipated, the potential impact of any general economic slowdown, competition for corporate sponsors and in the industry generally, operational challenges associated with building out the company's ticketing and digital media operations and difficulties in attracting established artists away from more traditional contract structures.

Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, specifically the section titled "Item 1A. Risk Factors" of the company's most recent Annual Report filed on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements by or concerning Live Nation are expressly qualified in their entirety by the cautionary statements above. Live Nation does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided below.

Adjusted OIBDAN is a non-GAAP financial measure that the company defines as operating income (loss) before certain unusual and/or non-cash charges, depreciation and amortization, loss (gain) on sale of operating assets and non-cash compensation expense. The company uses Adjusted OIBDAN to evaluate the performance of its operating segments. The company believes that information about Adjusted OIBDAN assists investors by allowing them to evaluate changes in the operating results of the company's portfolio of businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. Adjusted OIBDAN is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of Adjusted OIBDAN as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in the company's business. Accordingly, Adjusted OIBDAN should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with U.S. GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted OIBDAN as presented herein may not be comparable to similarly titled measures of other

Free cash is a non-GAAP financial measure that the company defines as cash and cash equivalents less event-related deferred income, less accrued artist fees, less collections on behalf of others plus prepaids related to artist settlements/events. The company uses free cash as a proxy for how much cash it has available to, among other things, optionally repay debt balances, make acquisitions and finance new venue expenditures. Free cash is not calculated or presented in accordance with U.S. generally accepted accounting principles. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available for operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with U.S. GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies.

             CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS                                             Year Ended December 31,                                      2007            2006          2005                               (in thousands except share and per share data)    Revenue                         $4,184,981      $3,711,715    $2,936,845   Operating expenses:     Direct operating expenses      3,333,572       2,997,863     2,310,925     Selling, general and      administrative expenses         653,811         530,340       518,907     Depreciation and amortization    120,828         128,167        64,622     Loss (gain) on sale of operating      assets                          (51,226)        (11,640)        4,859     Corporate expenses                45,854          33,863        50,715       Operating income (loss)         82,142          33,122       (13,183)   Interest expense                    61,915          37,218         6,059   Interest expense with Clear    Channel Communications                 --              --        46,437   Interest income                    (14,479)        (12,446)       (2,506)   Equity in losses (earnings) of    nonconsolidated affiliates         (4,806)         (8,407)          276   Minority interest expense            7,869          12,209         5,236   Other expense (income) -- net          (13)         (1,220)          446   Income (loss) before income    taxes                              31,656           5,768       (69,131)   Income tax expense (benefit):     Current                           35,943          26,876       (53,025)     Deferred                           7,649          10,334       114,513   Net loss                           (11,936)        (31,442)     (130,619)   Other comprehensive income     (loss), net of tax:     Unrealized holding gain (loss)      on cash flow derivatives         (1,888)            104            --     Foreign currency translation      adjustments                      37,579          27,032        (4,398)   Comprehensive income (loss)        $23,755         $(4,306)    $(135,017)    Basic and diluted net loss    per common share                   $(0.17)         $(0.48)       $(1.96)   Basic and diluted weighted    average common shares    outstanding                    68,440,582       64,853,243   66,809,394                           CONSOLIDATED BALANCE SHEETS                                                         December 31,                                                     2007          2006                                             (in thousands except share data)                                   ASSETS   CURRENT ASSETS   Cash and cash equivalents                       $338,991       $313,880   Accounts receivable, less allowance of    $18,928 in 2007 and $13,465 in 2006             264,316        250,831   Prepaid expenses                                 186,379        136,938   Other current assets                              44,722         38,519       Total Current Assets                         834,408        740,168   PROPERTY, PLANT AND EQUIPMENT   Land, buildings and improvements               1,018,079        999,561   Furniture and other equipment                    236,320        193,290    Construction in progress                          51,725         43,370                                                  1,306,124      1,236,221   Less accumulated depreciation                    391,079        360,049                                                    915,045        876,172   INTANGIBLE ASSETS   Intangible assets -- net                         382,999         73,398   Goodwill                                         471,542        423,169   OTHER ASSETS   Notes receivable, less allowance    of $745 in 2007 and $545 in 2006                  1,703          2,613   Investments in nonconsolidated affiliates         23,443         59,283   Other assets                                     122,963         50,199       Total Assets                              $2,752,103     $2,225,002           LIABILITIES AND SHAREHOLDERS' EQUITY   CURRENT LIABILITIES   Accounts payable                                 $79,273        $40,646   Accrued expenses                                 529,984        471,414   Deferred revenue                                 259,868        230,179   Current portion of long-term debt                 36,345         31,721       Total Current Liabilities                    905,470        773,960    Long-term debt                                   786,261        607,425   Other long-term liabilities                       91,465         88,790   Minority interest liability                       61,841         76,165   Series A and Series B redeemable preferred    stock                                            40,000         40,000   Commitments and contingent liabilities   SHAREHOLDERS' EQUITY   Preferred stock - Series A Junior Participating,    $.01 par value; 20,000,000 shares authorized; no    shares issued and outstanding                        --             --   Preferred stock, $.01 par value; 30,000,000 shares    authorized; no shares issued and outstanding         --             --   Common stock, $.01 par value; 450,000,000 shares    authorized; 74,893,005 and 67,174,912 shares    issued and outstanding in 2007 and 2006,    respectively                                        749            672   Additional paid-in capital                       940,848        757,748   Retained deficit                                (130,941)      (119,005)   Cost of shares held in treasury (1,697,227    shares in 2006)                                      --        (21,472)   Accumulated other comprehensive income            56,410         20,719       Total Shareholders' Equity                   867,066        638,662       Total Liabilities and Shareholders'        Equity                                   $2,752,103     $2,225,002     Reconciliation of Non-GAAP Measures to Their Most Directly Comparable GAAP    Measures   (Unaudited)    Reconciliation of North American Music Adjusted OIBDAN to Operating    Income / (Loss) - Fourth Quarter and Full Year   ($ in thousands)                           Three Months Ended,       Twelve Months Ended,                       12/31/2007    12/31/2006  12/31/2007   12/31/2006   Adjusted OIBDAN        $14,857     ($8,724)      $74,538      $33,662   Depreciation and    amortization           22,036      15,309        60,286       77,775   Loss (gain) on sale    of operating assets       101         (62)       (6,725)         (63)   Non-cash compensation    expense                 5,972         216         9,151          769   Non-cash impairment    charge                      0           0             0            0   Operating Income    (Loss)               ($13,252)   ($24,187)      $11,826     ($44,819)      Reconciliation of North American Amphitheater Adjusted OIBDAN to Operating    Income / (Loss) - Full Year   ($ in thousands)                                                     Twelve Months Ended,                                                 12/31/2007     12/31/2006   Adjusted OIBDAN                                  $68,441        $40,506   Depreciation and amortization                     31,614         69,620   Loss (gain) on sale of operating assets             (572)           (66)   Non-cash compensation expense                          0              0   Non-cash impairment charge                             0              0   Operating Income (Loss)                           37,399        (29,048)      Reconciliation of International Music Adjusted OIBDAN to Operating    Income / (Loss) - Fourth Quarter and Full Year   ($ in thousands)                           Three Months Ended,        Twelve Months Ended,                       12/31/2007    12/31/2006   12/31/2007   12/31/2006   Adjusted OIBDAN        $19,547       $11,977      $78,425      $68,574   Depreciation and    amortization            3,072         5,495       14,928       15,006   Loss (gain) on sale    of operating assets    (157)         (114)     (18,807)       1,041   Non-cash compensation    expense                 3,598            44        4,122          159   Non-cash impairment    charge                      0             0            0            0   Operating Income    (Loss)                $13,034        $6,552      $78,182      $52,368     Reconciliation of Global Artists Adjusted OIBDAN to Operating Income /    (Loss) - Fourth Quarter and Full Year   ($ in thousands)                           Three Months Ended,        Twelve Months Ended,                       12/31/2007    12/31/2006   12/31/2007   12/31/2006   Adjusted OIBDAN           $606       $20,914       $9,595      $36,018   Depreciation and    amortization            9,461         4,265       19,849        6,121   Loss (gain) on sale    of operating assets         0             0            0            0   Non-cash compensation    expense                 1,210           156        2,882          621   Non-cash impairment    charge                      0             0            0            0   Operating Income    (Loss)               ($10,065)      $16,493     ($13,136)     $29,276      Reconciliation of Global Digital Adjusted OIBDAN to Operating Income /    (Loss) - Fourth Quarter and Full Year   ($ in thousands)                              Three Months Ended,      Twelve Months Ended,                           12/31/2007   12/31/2006   12/31/2007   12/31/2006   Adjusted OIBDAN            ($2,443)       ($880)     ($5,877)     ($5,579)   Depreciation and    amortization                1,141          172        3,311          501   Loss (gain) on sale of    operating assets                0            0            0            0   Non-cash compensation expense  770            5        1,272           22   Non-cash impairment charge       0            0            0            0   Operating Income (Loss)    ($4,354)     ($1,057)    ($10,460)     ($6,102)      Reconciliation of Total Adjusted OIBDAN to Operating Income / (Loss) -    Fourth Quarter and Full Year   ($ in thousands)                               Three Months Ended,     Twelve Months Ended,                           12/31/2007   12/31/2006   12/31/2007   12/31/2006   Adjusted OIBDAN            $32,624      $20,841     $180,934     $156,097   Depreciation and    amortization               41,144       34,280      120,828      128,167   Loss (gain) on sale of    operating assets          (30,292)        (139)     (51,226)     (11,640)   Non-cash compensation    expense                    17,582          960       29,190        3,431   Non-cash impairment charge       0          400            0        3,017   Operating Income (Loss)     $4,190     ($14,660)     $82,142      $33,122      Reconciliation of North American Music Pro Forma to Actual Adjusted OIBDAN    to Operating Income / (Loss) - Fourth Quarter and Full Year   ($ in thousands)                                         As Reported                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                463,271      416,628    1,955,059    1,629,247   Adjusted OIBDAN         14,857       (8,724)      74,538       33,662   % Margin                  3.2%        (2.1%)        3.8%         2.1%   Operating Income    (Loss)                (13,252)     (24,187)      11,826      (44,819)   % Margin                 (2.9%)       (5.8%)        0.6%        (2.8%)                                    Acquisitions/Divestitures (2)                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                      0       62,559       58,900      434,082   Adjusted OIBDAN              0        2,945        2,755       19,297   % Margin   Operating Income    (Loss)                      0        2,157        4,312       10,874   % Margin                                              Pro Forma                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                463,271      479,187    2,013,959    2,063,329   Adjusted OIBDAN         14,857       (5,779)      77,293       52,959   % Margin                  3.2%        (1.2%)        3.8%         2.6%   Operating Income    (Loss)                (13,252)     (22,030)      16,138      (33,945)   % Margin                 (2.9%)       (4.6%)        0.8%        (1.6%)      Reconciliation of North American Amphitheater Pro Forma to Actual Adjusted    OIBDAN to Operating Income / (Loss) - Full Year   ($ in thousands)                                       Acquisitions/                       As Reported     Divestitures (2)     Pro Forma                     Twelve    Twelve  Twelve   Twelve    Twelve    Twelve                     Months    Months  Months   Months    Months    Months                     Ended     Ended   Ended    Ended     Ended     Ended                   12/31/07  12/31/06 12/31/07 12/31/06 12/31/07  12/31/06   Revenue          571,136   566,199     869   78,924   572,005   645,123   Adjusted OIBDAN   68,441    40,506    (722)   4,988    67,719    45,494   % Margin           12.0%      7.2%                      11.8%      7.1%   Operating Income    (Loss)           37,399   (29,048)    993    3,409    38,392   (25,639)   % Margin            6.5%     (5.1%)                      6.7%     (4.0%)      Reconciliation of International Music Pro Forma to Actual Adjusted OIBDAN    to Operating Income / (Loss) - Fourth Quarter and Full Year   ($ in thousands)                                          As Reported                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                304,513      201,195    1,078,696      867,423   Adjusted OIBDAN         19,547       11,977       78,425       68,574   % Margin                  6.4%         6.0%         7.3%         7.9%   Operating Income    (Loss)                 13,034        6,552       78,182       52,368   % Margin                  4.3%         3.3%         7.2%         6.0%                                     Acquisitions/Divestitures (3)                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                      0       17,050        9,643       42,170   Adjusted OIBDAN              0        3,697        4,487        8,563   % Margin   Operating Income    (Loss)                      0        2,059        2,703        4,613   % Margin                                             Pro Forma                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                304,513      218,245    1,088,339      909,593   Adjusted OIBDAN         19,547       15,674       82,912       77,137   % Margin                  6.4%         7.2%         7.6%         8.5%   Operating Income    (Loss)                 13,034        8,611       80,885       56,981   % Margin                  4.3%         3.9%         7.4%         6.3%      Reconciliation of Global Artists Pro Forma to Actual Adjusted OIBDAN to    Operating Income / (Loss) - Fourth Quarter and Full Year   ($ in thousands)                                           As Reported                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                137,101      283,710      640,620      623,147   Adjusted OIBDAN            606       20,914        9,595       36,018   % Margin                  0.4%         7.4%         1.5%         5.8%   Operating Income    (Loss)                (10,065)      16,493      (13,136)      29,276   % Margin                 (7.3%)        5.8%        (2.1%)        4.7%                                    Acquisitions/Divestitures (4)                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                 28,126       45,088      142,498      288,198   Adjusted OIBDAN          1,289        1,099        6,044        9,364   % Margin   Operating Income    (Loss)                  1,137          946        5,436        8,230   % Margin                                             Pro Forma                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                165,227      328,798      783,118      911,345   Adjusted OIBDAN          1,895       22,013       15,639       45,382   % Margin                  1.1%         6.7%         2.0%         5.0%   Operating Income    (Loss)                 (8,928)      17,439       (7,700)      37,506   % Margin                 (5.4%)        5.3%        (1.0%)        4.1%      Reconciliation of Total Pro Forma to Actual Adjusted OIBDAN to Operating    Income / (Loss) - Fourth Quarter and Full Year   ($ in thousands)                                            As Reported                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue              1,013,500    1,058,697    4,184,981    3,711,715   Adjusted OIBDAN         32,624       20,841      180,934      156,097   % Margin                  3.2%         2.0%         4.3%         4.2%   Operating Income    (Loss)                  4,190      (14,660)      82,142       33,122   % Margin                  0.4%        (1.4%)        2.0%         0.9%                                     Acquisitions/Divestitures (1)                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue                 28,112      109,460      201,156      697,513   Adjusted OIBDAN          1,634        8,388       16,729       33,960   % Margin   Operating Income    (Loss)                  1,642        6,387       16,729       22,615   % Margin                                              Pro Forma                     Three Months  Three Months Twelve Months Twelve Months                          Ended         Ended       Ended         Ended                         12/31/07     12/31/06     12/31/07     12/31/06   Revenue              1,041,612    1,168,157    4,386,137    4,409,228   Adjusted OIBDAN         34,258       29,229      197,663      190,057   % Margin                  3.3%         2.5%         4.5%         4.3%   Operating Income    (Loss)                  5,832       (8,273)      98,871       55,737   % Margin                  0.6%        (0.7%)        2.3%         1.3%      Reconciliation of Cash and Cash Equivalents to Free Cash - Full Year   ($ in thousands)                                                 December 31,   December 31,                                                     2007           2006   Cash and Cash Equivalents                       $338,991       $313,880   Deferred Income                                $(223,702)     $(183,471)   Accrued Artist Fees                             $(28,393)      $(19,108)   Collections on Behalf of Others                $(117,165)     $(136,643)   Prepaids related to artist settlements/events   $114,991        $61,429     Free Cash                                      $84,722        $36,087  

First Call Analyst:
FCMN Contact:

Source: Live Nation

CONTACT: Media, John Vlautin of Live Nation, +1-310-867-7000, or
Investors, Brad Edwards of Brainerd Communicators, Inc., +1-212-986-6667

Web site: http://www.livenation.com/

---

Profile: International Entertainment