Collaborating for Business Success

Cox people on the front lines of our businesses know that our customers' expectations, and the products and services needed to meet and exceed them, are changing at lightning speed. Even with intense competition in the markets where we do business, remarkably, our company has achieved an average annual growth rate of nearly 12 percent over the last ten years. This growth creates not only stability in our operations, but also expanded opportunities for our employees.

Collaboration was an essential ingredient for a year of solid financial performance in 2007. Despite an increasingly challenging economic environment, we achieved continued growth and made significant strides in debt reduction. In the face of more economic uncertainty in 2008, we are pleased to report that our financial condition remains strong and stable.

This stability reflects the strong businesses and brands that make up our company. Well-regarded local brands have always been a cornerstone of our success, and, increasingly, we are building consumer brands within our portfolio of businesses that are more national in scope. In 2007, for instance, Cox Communications acquired the Travel Channel, the only television network devoted exclusively to travel entertainment. We also celebrated the national launch of Kudzu.com, the first website of its kind that enables consumers to find local service providers based, in part, on reviews by other consumers. Kudzu.com has the potential to grow into a "household name" brand across the nation. These national brands join existing ones such as Valpak, which is celebrating its 40th anniversary, as well as the Cox Auto Trader family of publications and websites, which are familiar names to millions of automotive shoppers online and in print.

Collaborating for the Greater Good

A collaborative effort is also critical to how we address community challenges, and those that face the entire planet. We are tremendously proud of the initiative we launched this year, Cox Conserves, which sets ambitious environmental goals for our company, namely to reduce our carbon footprint by 20 percent over the next decade. By educating and motivating each of our employees to make personal choices to conserve, recycle and protect precious resources, we will magnify the impact of this program. Additionally, we are making investments that will reduce the environmental impact of our own facilities and infrastructure, as well as supporting community efforts that are aligned with our own environmental goals.

Our ability to achieve such ambitious goals flows from what we like to call "Cox plus" - a unique combination of businesses, resources, assets and people unlike any other. When "Cox plus" is at work, it means we are taking advantage of our collective talents and capabilities all across the company. The resulting strength represents not only what we have, but also how well we put it together.

A recap of 2007 would not be complete without reflecting on the legacies of two remarkable people who left us last year. Barbara Cox Anthony spent her life championing the growth of the company founded by her father, Governor James Cox. She was a visionary leader who pushed us to continually embrace new opportunities. Mrs. Anthony often reminded us that teamwork and a commitment to the greater good were even more important virtues than winning alone.

Our friend Jim Robbins, who shared the same competitive zeal and tenacity as Mrs. Anthony, was a legendary pioneer of the cable and broadband industry. He made immeasurable contributions to the success of Cox Communications. Jim's intense focus on great customer service - first, last and always - is a deeply embedded value that will remain part of our culture for years to come.

Our company will continue to prosper because of our commitment to the values that these two individuals helped instill in us. We appreciate the efforts of all of our employees, whose collaboration and teamwork made this past year so successful. New opportunities await, and we look forward to the coming years when one good thing will continue to lead to another.

With our best regards,

Chairman and Chief Executive Officer

President and Chief Operating Officer

Another Record Year

Cox Enterprises is one of the nation's leading media companies and providers of automotive services. We are a Top 10 national player, based on revenues, in every major business category where we compete.

Major subsidiaries include:

Cox Communications - the third largest cable TV provider and among the largest broadband communications companies overall in the U.S.

Manheim - the world's leading provider of used vehicle services and a marketplace for the millions of cars that change hands every year.

Cox Newspapers - one of the nation's 10 largest newspaper publishing enterprises.

Cox Auto Trader - the world's largest auto classified marketplace, utilizing both print and interactive media.

Cox Television - operates both network-affiliated and independent television stations across the country, as well as local cable television channels.

Cox Radio - one of the largest radio broadcasting companies in the U.S., based on revenues.