Yep!
And it can make it show stupidly targeted ads if you link to a non related site.

Be careful though. The current program policies says that you have to "Avoid hidden text or hidden links. Keep the links on a given page to a reasonable number (fewer than 100)". I've seen sites that have several hundred links on a page, and they have been banned.

I couldn't see anywhere in the TOS that says they take into account outgoing links when targeting ads. But as they are text as well, there is always the possibility they might look at the text of the link but not the content of the site you link to. I wouldn't rely on it as a way of getting ads personally. I think it's better to concentrate on the page content (the reason the visitors are there) than to try and get certain ads by links etc.

In my experience, the anchor text in an outbound link--or in a navigation link--will sometimes influence what ads are displayed. But then again, sometimes it seems almost as if words are being plucked at random from the body text. (Ad targeting usually works pretty well on my site, but there are times when I think "What?")

I have the impression that Google's ad-matching algorithm is updated fairly often, so what you see today won't necessarily be what you'll see a week or a month from now.