ENTRAVISION COMMUNICATIONS CORP

If our contractual arrangements with TelevisaUnivision terminate or expire, we anticipate fundamental adjustments to our television operations and business operations as a whole.

If our network affiliation agreement, proxy agreement and sales and marketing agreement currently in effect with TelevisaUnivision terminate or expire, we would be required to undertake a fundamental adjustment to our television operations, which in turn would affect our business operations as a whole. Such adjustments could include, among other things, entering into an affiliation arrangement with a third party; operating our television stations on our own; or disposing of some, most or all of our television assets. It is likely that some alternatives we pursue could result in significant decreases in revenue and/or significant increases in cost.

In light of this possible development, we have initiated a review of our operating strategy and cost structure, but there can be no assurances that we will be able to address and manage timely and effectively our costs and infrastructure to offset, in whole or in part, the lost revenue from any significant reduction or termination of our television operations. In addition, we may incur significant costs associated with any efforts we may take, including but not limited to severance costs. Addressing operating strategy and cost reduction measures in light of such a development, were it to occur, including any related charges and the impact of any related workforce reduction, could have a material adverse effect on our business, operating results and financial condition.