Outdoor Channel Holdings Reports Strong 2008 Third Quarter Results

Temecula, California — Outdoor Channel Holdings, Inc. (NASDAQ:OUTD) reports increases in total revenues of 18.2 percent and 12.8 percent, respectively, for the three- and nine-month periods ended September 30, 2008.

Total revenues from continuing operations amounted to $15.0 million for the 2008 third quarter, compared with $12.7 million in the corresponding period a year ago. For the first nine months of 2008, total revenues from continuing operations equaled $39.7 million, compared with $35.2 million in the 2007 nine-month period.

Advertising revenue for the 2008 third quarter rose 32.3 percent to $10.5 million from $7.9 million in the prior-year period. For the first nine months of 2008, advertising sales rose 27.2 percent to $26.6 million from $20.9 million in the first nine months of 2007.

Subscriber fees totaled $4.5 million for the third quarter of 2008 and $13.1 million year-to-date. This reflects reductions of 5.4 percent and 8.2 percent, respectively, from $4.7 million and $14.3 million in the 2007 third quarter and nine months. The company attributed the reductions in subscriber fees to the successful completion of carriage negotiations with the majority of its distributors during the preceding year.

“Our strong third quarter financial performance demonstrates our continued progress in implementing our growth strategy and building upon our leadership position in outdoor TV,” said Roger L. Werner, President and Chief Executive Officer. “During the quarter, we generated double digit advertising growth, as we continued to capitalize on our audience gains and improved programming. Looking ahead, we remain focused on further strengthening our brand, monetizing our audience growth, maximizing our distribution relationships and expanding our digital presence.”

Outdoor Channel Holdings posted net income of $2.4 million, or $0.09 per diluted share, for the 2008 third quarter, compared with a net income of $1.5 million, or $0.06 per diluted share, in the prior-year period. For the 2008 nine-month period, the company posted net income of $1.9 million, or $0.07 per share, compared to a net loss of $299,000, or ($0.01) per share, for the first nine months of 2007.

Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for the effects of discontinued operations and share-based compensation expense, amounted to $5.4 million for the 2008 third quarter, compared with $3.1 million in the prior-year period. For the year-to-date period, EBITDA, adjusted for the effects of discontinued operations and share-based compensation expense, equaled $7.0 million, compared with $8.0 million for the first nine months of 2007.

Investor Conference Call Outdoor Channel Holdings’ management will host an investor conference call today, October 30, 2008, at 2 p.m. PDT (5 p.m. EDT) to review the company’s financials and operations for its 2008 third quarter ended September 30, 2008. Investment professionals are invited to participate in the live call by dialing 800-659-1942 (domestic) or 617-614-2710 (international) and using participant passcode 70817379. The call will be open to all other interested parties through a live, listen-only audio Internet broadcast in the Investor Relations section of the company’s Web site, www.outdoorchannel.com. For those who are not able to listen to the live broadcast, the call will be archived on the web site for one year. A telephonic playback of the conference call also will be available through 5 p.m. PDT (8 p.m. EDT), November 6, 2008, by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using participant passcode 23551543.

About Outdoor Channel Holdings, Inc.

Outdoor Channel Holdings, Inc. owns and operates Outdoor Channel, America’s leader in outdoor TV. The national network offers programming that captures the excitement of hunting, fishing, shooting, off-road motorsports, adventure and the Western lifestyle. Outdoor Channel can be viewed on multiple platforms including high definition, video-on-demand, as well as on a dynamic new broadband website. For more information about the company or Outdoor Channel, please visit www.outdoorchannel.com.

Nielsen Media Research Universe Estimates for Outdoor Channel

Nielsen Media Research is the leading provider of television audience measurement and advertising information services worldwide. Nielsen estimated that Outdoor Channel had approximately 29.6 million cable and satellite subscribers for November 2008. Please note that this estimate regarding Outdoor Channel’s subscriber base is made by Nielsen Media Research and is theirs alone and does not represent opinions, forecasts or predictions of Outdoor Channel Holdings, Inc. or its management. Outdoor Channel Holdings, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such information.

Use of Non-GAAP Financial Information

This press release includes “non-GAAP financial measures” within the meaning of the Securities and Exchange Commission rules. The company believes that earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for the effects of discontinued operations and share-based compensation expense, provides greater comparability regarding its ongoing operating performance. This information is not intended to be considered in isolation or as a substitute for net income (loss) calculated in accordance with U.S. GAAP. A reconciliation of the company’s U.S. GAAP information to EBITDA, adjusted for the effects of discontinued operations and share-based compensation expense is provided in the attached table.

Safe Harbor Statement

Statements in this news release that are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including statements, without limitation, about our expectations, beliefs, intentions, strategies regarding the future long-term value of the company resulting from the company’s current actions or strategic initiatives and the future anticipated value of Outdoor Channel to our audience, distributors and advertisers. The company’s actual results could differ materially from those discussed in any forward-looking statements. The company intends that such forward-looking statements be subject to the safe-harbor provisions contained in those sections. Such statements involve significant risks and uncertainties and are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) service providers discontinuing or refraining from carrying Outdoor Channel; (2) a decline in the number of viewers from having Outdoor Channel placed in unpopular cable or satellite packages, or increases in subscription fees, established by the service providers; (3) the company’s ability to grow the subscriber base of Outdoor Channel; (4) a change in Nielsen’s methodology of estimating the number of subscribers to Outdoor Channel, or an inaccuracy in Nielsen’s such estimated number; (5) economic conditions causing a decrease, or slowing of growth, in our advertising revenue; and other factors which are discussed in the company’s filings with the Securities and Exchange Commission. For these forward-looking statements, the company claims the protection of the safe harbor for forward-looking statements in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Media Contact:
Thomas Hornish, Chief Operating Officer, Outdoor Channel Holdings, Inc. (951) 699-6991, ext. 104 or thornish@outdoorchannel.com