Atlanta Market Study 2002-2003

1. Atlanta Market Study 2002-2003

2. Atlanta MSA & Surrounding Counties Note: Cleburne and Randolph Counties in Alabama and Clay County in North Carolina are also included in the Atlanta DMA geography but are not pictured in map.

3. Atlanta Is The Eighth Largest Metropolitan Market In The U.S. Millions of people in MSA Between the 1990 and 2003 Census, Atlanta recorded a population growth of 52.3% , one of the highest growth rates in the nation. --2000 U.S. Census Source: 2004 Demographics Now

4. Atlanta Is The SecondLargest Southern Market Millions of people in MSA Source: 2004 Demographics Now

5. Atlanta’s Population Is ProjectedTo Increase By 13.5% In Five Years Total Atlanta Total U.S. population population 2003-2008: 2003-2008: +13.5% +5.3% Atlanta Population In Millions Source: 2004 Demographics Now

6. Atlanta Ranks First In The United States For Population Increase Between 1990-2003 Source: 2000 US Census Bureau as noted in 2004 Demographics Now

7. Of The Top Ten Markets, Atlanta Has The Fastest Projected Population Growth Rate Between 2003-2008 U.S. Projected Growth Rate = 5.3% Projected percent increase in population between 2003-2008 Source: 2004 Demographics Now

8. Metro Atlanta Projected PopulationGrowth By County (2003-2008) *Rank among top ten fastest growing counties in the U.S. between April 2000 and July 2003 per the U.S. Census Bureau) Source: Demographics Now Online (November, 2003)

9. MSA 13.1% 2003 1,644,818 2008 1,859,519 North Suburbs 18.8% 2003 684,029 2008 812,818 Inside I-285 3.0% 2003 312,315 2008 321,828 South Suburbs 18.1% 2003 360,503 2008 425,922 Atlanta Households Are Projected To Grow 13.1% From 2003 To 2008 Source: 2004 Demographics Now

10. Metro Atlanta Projected Household Growth By County (2003-2008)(descending sort by % growth) Source: Demographics Now Online (January, 2004) *Rank among top ten fastest growing counties in the U.S. between April 2000 and July 2003 per the U.S. Census Bureau)

11. Atlanta Ranks At The Top In Published Surveys #1 Top Travel Destination For African-Americans (6th For Latinos; 10th for Asian-Americans) Travel Industry Association of America, January 2004 #1 Top City for Entrepreneurs Inc. Magazine, February 2004 #1 Where Employment Will Grow Fastest, 1998 - 2025 Newsweek, 1999; Bureau of Labor Statistics #1 Busiest Airport in the World, Hartsfield International, serving more than 76 million passengers a year www.infoplease.com #1 Top City for Business Relocation (fifth consecutive year) Plants Sites & Parks Magazine, 2003 #1 Hottest City in the Nation for Relocation and Expansion Expansion Management Magazine, January 2004 #2 Entrepreneurial Activity and Small Business Growth (among top ten markets); Entrepreneur Magazine and Dun & Bradstreet annual survey; October 2003 #3 Most corporate headquarters of publicly-traded American companies (based on 2001 revenues); Fortune Magazine, April 2002 #4 Best Places for Business and Careers Forbes, 2003 #4 Hiring Havens Computerworld Magazine, January 2001 #6 Among top ten metros for “America’s Most Wired Cities” Yahoo Internet Life Magazine, Spring 2002

12. Atlanta Attracts Corporate Business • 32 companies with 100+ employees have expanded or relocated to the Atlanta metro area during 2002 to the present, including….. • Fortune 500 company Newell Rubbermaid, relocating from Illinois. NR will bring 900 jobs to Atlanta, including 100 of the company’s top executives. • Cooper Wiring Devices, relocating from New York, and bringing 115 new jobs • Hagemeyer North America (electrical parts distributor from the Netherlands), relocating its American headquarters from current facilities in South Carolina and bringing 250 jobs to the metro • Acuity Specialty Products Group consolidates its headquarters in Atlanta and brings 100 new jobs • Cendian, a chemical third-party logistics provider in Atlanta, doubled its work force Source: Expansion Management, January 2004. Study rated Atlanta as #1 for “America’s 50 Hottest Cities For Expansions and Relocations”

13. Atlanta Attracts Corporate Business • Atlanta was cited as a viable headquarters site in a very competitive process because of its projected growth, living environment, climate, location and educational opportunities according to Newell Rubbermaid. • Atlanta offers prime logistics for employee and product/cargo transportation. Hartsfield-Jackson Airport allows worldwide access to the metro area, and both Delta and UPS are headquartered here. Atlanta Hartsfield-Jackson Airport, currently undergoing a $6 billion expansion, as well as some of the top colleges and universities in the nation serve to attract corporation headquarters to the Atlanta market. Source: Expansion Management, January 2004. Study rated Atlanta as #1 for “America’s 50 Hottest Cities For Expansions and Relocations”

14. Atlanta’s Hartsfield-Jackson International Is The World’s Busiest Passenger Airport Passengers served 2002 • An average 2,400 flights/day connect metro Atlanta’s business community with every major market in the world. • Access to more than 200 domestic and international cities • An estimated 80% of the US market is reachable within 2 hours time. • More than 20 airlines service Atlanta, offering flyers affordable and competitive rates. 76.8 Million 66.5 Million Source: Hartsfield-Jackson Atlanta International Airport, 2003, Chicago O'Hare Airport Authority 2003

15. A Strong, Diverse Industry Base: Atlanta Employment By Industry An estimated 2,237,194 employees work in Atlanta’s non-agricultural industries. # of Atlanta Employees Services 174,078 Retail 252,347 Government 291,358 Manufacturing 161,332 Business Services 386,344 T.W.U. 108,776 Wholesale 134,299 Financial Activities 146,331 Health Services 60,139 Construction 122,782 Social Assistance 27,884 T.W.U = Transportation, Warehousing, Utilities Source: Georgia Department of Labor (Economic Indicators), Third Quarter 2003

16. America’s Favorite Chicken Co. American Cancer Society Amoco Perf. Products, Inc. BellSouth Corp. Boys/Girls Clubs CARE Chick-Fil-A CIBA Vision Corp. Cingular Wireless The Coca-Cola Company Coca Cola Enterprises Cox Communications Cox Enterprises CNN Delta Air Lines EarthLink Equifax First Financial Management Genuine Parts Georgia Pacific Goldkist Inc. Atlanta Headquartered Firms • Haverty’s Furniture • Hitachi Home Electronics (U.S.) • Home Depot • Lanier Worldwide, Inc. • Lockheed/ Martin • Mirant • Mohawk Industries • Newell Rubbermaid • Philips Electronics • Porsche North America • Post Properties • Rayovac Corp. • Rich’s/ Lazarus/ Goldsmith’s • SAAB Cars USA • Scientific Atlanta • The Southern Company • SunTrust Banks • TEC America • Turner Broadcasting • United Parcel Service Note: Fortune 500 Companies highlighted in red

17. Atlanta’s Top Corporate Employers CompanyEmployees 1. Delta Air Lines 23,439 2. BellSouth Corp. 20,000 3. Wal-Mart Stores Inc. 15,600* 4. The Home Depot, Inc. 10,040 5. IBM Corp. 7,344 6. AT&T 7,300 7. Sun Trust Banks Inc. 7,179 • Cox Enterprises 5,870 • United Parcel Service Inc. 5,861 10. Wachovia 5,400 * Wal-Mart employees estimate, Wal.Mart Stores Inc qualify for this list but did not respond Source: 2003 Atlanta Business Chronicle - Book of Lists

18. New Business Operations In Metro Atlanta With an average of 198 businesses relocating or expanding operations to Metro Atlanta each year, it is no surprise that more than 600,000 jobs have been created in the Metro area in the past decade. Source: Metro Atlanta Chamber of Commerce; RFA Dismal Sciences Inc./Goizueta Business School, Emory University; First Union Bank & Economic Forecasting Department., Wall Street Journal; GA Dept of Labor

19. More Than 600,000 Jobs Have Been Created In Metro Atlanta YearJobs Created 2003 68,100 2002 -15,300 2001 -60,400 2000 35,000 1999 80,000 1998 77,000 1997 55,900 1996 86,000 1995 84,100 1994 97,700 1993 85,600 Source: RFA Dismal Sciences Inc./Goizueta Business School, Emory University; First Union Bank & Economic Forecasting Department., Wall Street Journal; GA Dept of Labor; *Projected from GSU Economic Forcasting Center

20. Atlanta’s Unemployment Rate Is Lower Than The National Rate Source: U.S. Department of Labor- For March 2004; Georgia Dept. of Labor - For March 2004

21. Current Year Employment Increases • The largest over-the-year employment increases were reported in Atlanta, with 47,400 new jobs. • Atlanta ranked second among largest metropolitan areas for highest over-the-year percentage increase, with a 2.2% gain. Among 272 metropolitan areas studied by the Bureau of Labor Statistics…. Source: US Dept. of Labor - August 2003

22. $65,632 $71,117 $71,835 $67,092 $84,849 $79,183 $66,439 $73,619 $67,867 Metro Atlanta Has A Lower Cost of Living Than Most Major U.S. Metros And A High Average Household Income Average U.S. Metro Area = 100 Average HH Income Source: ACCRA 3rd Quarter 2002 Cost of Living Index; 2004 Demographics Now

23. Do You Think You And Your Family Will Be Better Off Financially A Year From Now? Source: Kennesaw State University Econometric Center – Third Quarter 2003

24. Atlanta’s Retail Sales Rank In The Top Ten Nationally 2003 Nat’l 2003 RankingTotals (000’s) Total Retail Sales 7 $66,900,532 Bldg Material/Garden Equip. & Supp. Store Sales 1 $8,193,152 Motor Vehicle/Parts Dealer Sales 5 $17,869,853 Grocery Store Sales 5 $7,643,549 Department Store Sales 6 $5,686,384 General Merchandise Store Sales 7 $7,498,631 Furniture/Home Furnishing Store Sales 7 $2,038,734 Women’s & Girl’s Clothing 8 $2,620,267 Footwear Sales 8 $930,973 Men’s and Boy’s Clothing 9 $1,437,195 Clothing & Clothing Store Sales 10 $2,828,248 Source: 2003 Demographics USA - County Edition

25. Of the Top Ten Markets, Atlanta Ranks # 2 For Highest Retail Sales Per Household Source: 2003 Demographics USA - County Edition

26. Atlanta Is A Highly Competitive Retail Market • Atlanta has 951 shopping centers. • The national average for retail space is 16 square feet per person. Metro Atlanta has an average of 27 square feet per person. • Atlanta has 118 million square feet of retail space, and an additional 5.5 million under construction. • In the past 4 years more than 6 million square feet of retail space have opened including Mall of Georgia (Gwinnett), Arbor Place (Douglasville), Lenox Marketplace (across from Phipps) Stonecrest Mall (DeKalb) and Discover Mills (Gwinnett). • Scheduled to open in spring 2005 is Atlantic Station, a 138-acre environmental redevelopment of the former Atlantic Steel Mill in Midtown. The completed project will include retail, office, residential, hotel and public park space. A projected 1.5 million feet will be devoted to retail and entertainment space, including restaurants and movie theaters. Source: Atlanta Business Chronicle, September 2003; Dorey Market Analysis Group; National research Bureau; Atlantic Station marketing/public relations office

27. Major Retail Arrivals And Departures1999-2004 Arrivals Galyan’s Staples Whole Foods Mall of Georgia Lenox Marketplace Arbor Place Mall Ritz Camera Cost Plus World Market Walgreen’s Discover Mills Kohl’s Olson Tire Stonecrest Mall Big Screen Store Brandon’s Aldi Foods BJ’s Wholesale Ashley Furniture Bloomingdale’s Filene’s Basement HH Gregg Eyeglass World Fresh Value Foods Dekor Brandsmart (October 2004) 2000 2002 2003 2004 1999 2001 Homeplace/ Waccamaw Drug Emporium Harris Teeter Cub Foods Dekor Home Life A&P MJ Design Upton’s Roberd’s Avondale Mall Macy’s Lord & Taylor (announced) Departures

28. Atlanta MSA Demographics Male 49% Female 51% Married 54% College Grad+ 26% Own Home 61% White 65% Black 28% Children 1> in HH 41% Age 18-34 36% Age 35-54 43% Age 55+ 21% Median Age 18+ 40.4 HH Inc $50K+ 54% HH Inc $75K+ 33% Median Income $53,996 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market

29. Atlantans’ Regular Activities Total Adults Walking for exercise 941,586 Home Exercise 636,873 Gardening 556,991 Arts and Crafts 374,626 Photography 359,894 Jogging/Running 299,130 Other Aerobic Exercise 296,044 Fishing 193,531 Swimming 185,409 Antiquing 181,883 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market

30. Events and Places Atlantans Attended In the Past Year Total Adults Stone Mountain Park 1,146,349 Live Theater 1,060,742 Braves Game 1,018,565 Local Arts/Craft Festival 817,440 Underground Atlanta 816,548 Six Flags 746,806 Atlanta Zoo 683,544 Other concert 635,622 High School Sports Event 624,022 Lake Lanier 461,916 Little League Baseball 446,513 Falcons Game 425,946 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market

31. Competitive Media The Atlanta Journal-Constitution

32. Manheim Auto Auctions Cox Enterprises, our parent company… Cox Newspapersincludes AJC & VAL PAK Cox Radio Cox Television Cox Communications Video/Voice/Data

33. Atlanta Journal-Constitution overview: • Largest daily newspaper in the Southeast • More research & information than other media properties • Average Sunday readership over 1,899,000 adults • Average daily readership over 1.2 million adults • Weekly zoning within 14 zones • More than 6,000 employees

34. Readership Of The Atlanta Journal-Constitution Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market

35. AJC Share of Newspaper Readers in Atlanta MSA 92% Read AJC 77% Read AJC Base: Read a Daily Newspaper Yesterday Base: Read a Sunday Newspaper Last Sunday Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market

36. The AJC Has The Fourth Highest Market Penetration Among The Top 10 MSA’s Source: 2003 Scarborough Research, Inc. (Release 2) 4-Sunday Cume

37. AJC Readership Continues To Grow Number of Adult Readers Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market

38. Atlanta Journal-Constitution Reader Demographics Atlanta Average Average AJC.com MSA Weekday Sunday Past 30dys Male49% 50% 47% 50% Female 51% 50% 53% 49% Married 54% 59% 57% 53% College Grad+ 26% 32% 30% 39% Own Home61% 67% 65% 58% White 65% 66% 64% 60% Black 28% 28% 30% 30% Children 1+ 41% 41% 43% 47% Age 18-34 36% 30% 32% 47% Age 35-54 43% 44% 45% 44% Age 55 Plus 21% 26% 23% 10% Median Age 40 43 42 36 HH Inc $75K+ 33% 39% 37% 43% Median HH Income $53,996$60,467$59,283 $66,297 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market

39. Big Three Networks’ Share of Viewing Down An Average of 42% Since 1985 Source: Nielsen Media Research

40. As Network Viewership Declines Cable Viewership Increases Source: Nielsen NTAR for various fourth quarters

41. In Atlanta, The AJC Delivers A Larger Audience Than The Super Bowl On Any Given Sunday 2004 Super Bowl (New England vs. North Carolina) National Rating (CBS) Local Rating (CBS-WGCL) Sunday AJC *Avg Issue in Atlanta DMA Source: Nielsen, Scarborough

42. The Journal-Constitution Is The Most Efficient MediumTo Reach Atlanta Households With Income $50K+ Total Reach 1 Sunday Ad 2,090 Spots 4,000 Spots 25 Ads Media selections based on top stations/print media for the target, including: morning drive radio WSB AM, WVEE FM, WKLS FM, WALR FM and WABE FM (6am-10am, Mon-Fri); cable stations CNN, Fox 24-Hr News Channel, TNT, Lifetime, F/X, HGTV Home & Garden, TLC, USA, BET and A&E (6am-2am Mon-Sun); and magazines Southern Living, TV Guide, Newsweek, Time and Sports Illustrated. Source: 2003 Scarborough Research,Inc. (Release 1)

43. Newspaper Advantages • Newspapers offer broad reach, favorable demos, zoning capabilities, improved color reproduction and streamlined ordering and billing. “Newspapers provide the kind of touch points for people to get the depth behind the broad premise laid out in other media,” according to Ogilvy & Mather creative director Chris Wall. • Geographic targeting works well in newspapers--- with strong results for retailers. “The thing we see in newspapers is the immediacy,” says Stuart Redsun, VP advertising for Gateway Computer. “With Gateway having 300 stores in local markets, newspapers are really a way to get the message out quickly, a targeted message for a given amount of time. We see traffic after we run an ad in newspapers.” Source: MediaWeek Magazine, April 30, 2001 edition; with data from Scarborough Research and Readership Institute at the Media Management Center at Northwestern University

44. Newspaper Advantages • Compare newspapers’ mass media reach with television fragmentation. 55.1% of the adult population in the U.S. reads a newspaper on average each day. In a one-week period, that number increases to 85%. Those numbers compare to only 38.1% of adults reached in an average half-hour of primetime TV. “One thing we know is that media you can target geographically should do better,” says Jon Mandel, co- managing director of MediaCom. “The closer you can get to the point of sale, especially in a recessionary environment, the better off you’re going to be.” Source: MediaWeek Magazine, April 30, 2001 edition; with data from Scarborough Research and Readership Institute at the Media Management Center at Northwestern University