1. More on Investing Lise Woodard Buy-side Equity Analyst, Wilkins Investment Counsel smartwomansecurities © 2006 Smart Woman Securities. All materials are for SWS members’ use only October 11, 2006

2. The Investment Industry

3. Types of Firms –Large publicly traded firms, such as Goldman Sachs, addressing a wide range of assets and services –Firms focused on a specific asset class – i.e., bonds –Firms focused on a specific type of client –Firms focused on a particular product – i.e., mutual funds –Where do hedge funds fit in? Investment Industry

4. –Investment firms serve different needs oWho is the Client? Institution or Individual? oHow is the client charged for the investment advise? oIs equity participation through mutual funds or individual stocks? oWhat is the role of the portfolio manager? The analyst? Buy- side or sell-side? oDoes the analyst do primary research or secondary research? oWhat is the Certified Financial Analyst (CFA) designation? oWhat is the investment style of the firm? Investment Industry

5. Case Study – American Tower

6. COMPANY DESCRIPTION –Largest wireless tower company in the U.S. with leading positions in Mexico and Brazil –Headquartered in Boston American Tower

7. DISTINCTIVE COMPETENCE CHARACTERISTICS –Wireless demand remains strong – family plans, 3G, video and data –Highly attractive operating margins –Success independent of which technology will be deployed by carriers

8. American Tower INTERMEDIATE EARNINGS DYNAMICS –Company estimating 2006 free cash flow of $500 million FINANCE AND MANAGEMENT –Highly leveraged balance sheet –Seasoned management team, initially with founder Steve Dodge

9. American Tower COMPETITION AND RISKS –Merged with SpectraSite (#3 player) in 2005, Crown Castle is #2 –Risks include technology replacement, higher interest expense, financial health of carriers

10. American Tower INVESTMENT CONCLUSION

11. Annual Report Update topics –Recent Updates –Intermediate Earnings Dynamics –Investment Conclusion American Tower

12. Researching a Company Newspaper articles –National: New York Times, Wall Street Journal, Barron’s –Local: Boston Globe, Boston Business Journal

13. Researching a Company Other sources –Magazines such as the Economist, Fortune –Industry-specific journals –ValueLine –Sell-side reports and hosted luncheons

14. Researching a Company Company sponsored events –Annual meeting and annual report –Quarterly conference calls to announce financial results –Financial conference presentations available on the company’s web site

15. Researching a Company SEC filings –10-K annual report and proxy statement –10-Q quarterly report –8K similar to a press release

16. Building a financial model 20052006EYoY% Tower revenue930129039% Services revenue 15 20 33% Tower expenses306 320 5% Tower Cash flow624 97055% Operating Margin67% 75% EBITDA602 88046% Interest expense222 215 Depreciation & amort411 535 Income before taxes (27) 100 Taxes 4 0 Net profit -31 100 EPS excl. one-time charges (0.10) 0.20 GAAP EPS (0.57) Free cash flow310 500

17. Metrics to value a company Price to Earnings (P/E) Ratio PEG - P/E ratio divided by long-term growth rate Book Value Return on Shareholder Equity – Net profit divided by Shareholder Equity Dividend yield Price to sales ratio

18. More Investing Q&A