ACG/Thomson Mid-Year 2006 DealMaker's Survey Records High Confidence Level by Ohio M&A Professionals; Globally, 2006 on Track for Record M&A Year; Corporate Cash, Active Buyout Firms Fuel Booming M&A Market.

CLEVELAND -- As worldwide mergers and acquisitions are on pace to break the year 2000 record, dealmakers are again expressing great optimism, with 91% of Ohio dealmakers saying the current M&A environment is good or excellent. The global ACG/Thomson DealMaker's Survey polled 1,201 investment bankers, private equity professionals and corporate executives, as well as lawyers, accountants and other service providers involved in the deal economy in May and June of 2006. The survey universe included 46 Ohio respondents.

"Many Cleveland dealmakers have cash they want to put to work," said Guy C. Fabe, president of ACG Cleveland and Partner, PricewaterhouseCoopers LLP. "As companies see that they can increase profitability by buying versus building, they become acquirers. Bankers are presenting some compelling investment opportunities, and a number of owners are getting good valuations for their businesses."

According to Thomson Financial, the total value of global M&A has reached $1.613 trillion so far in 2006 (as of June 13). That sum represents a 41% increase versus the corresponding period a year ago, when $1.143 trillion worth of deals were completed. The 2006 number is also on pace to surpass 2005's global M&A total of $2.769 trillion.

In addition, private equity firms, which have been busy investing existing funds and raising new ones, are chasing larger deals, often teaming up in "club deals" to challenge corporate "strategic" buyers.

M&A Objectives

Survey respondents in Ohio say the primary objective of mergers and
acquisitions is to:

   1. Increase revenues and profitability (53%)
   2. Grow market share (33%)
   3. Gain technology (4%)

The company attribute that matters most to an acquirer today is:

   1. Sales and revenue growth (30%)
   2. Management strength (22%)
   3. Attractive business sector (22%)
   4. Profitability (13%)

"Dealmakers are working at full throttle to take advantage of this market before inevitable volatility cuts into momentum. Buyers are well aware that there is little margin for error at today's prices, and sellers know this is a great time to get out," said Patrick Hurley, ACG Chairman and Managing Director of MidMarket Capital Advisors.

Hot M&A Sectors

According to the survey, Ohio dealmakers see the following sectors
experiencing the most merger activity in the second half of 2006:

   1. Manufacturing and distribution (29%)
   2. Technology (26%)
   3. Consumer Products and Services (16%)
   4. Business Services (16%)

Cross-Border M&A

Half (50%) of the Ohio dealmakers polled expect to be involved in an
international cross-border deal during the second half of 2006, and
42% say cross-border deals are becoming more important to their firms.
Geographically, they anticipate these deals will be with:

   1. Western Europe (43%)
   2. Canada (37%)
   3. China (33%)

Bad Deals

The primary reason mergers fail, according to Ohio respondents, is:

   1. Overpaying (40%)
   2. Poor post-merger integration follow-through (38%)
   3. Poor pre-merger integration planning (18%)

Organic Growth

Local survey respondents say the sectors that will experience the most
organic growth are:

   1. Healthcare, life sciences (32%)
   2. Business services (27%)
   3. Manufacturing and distribution (12%)
   4. Financial Services (12%)

Local executives are also bullish on organic growth based on these
elements serving as primary factors fueling organic growth in 2006:

   1. An improved domestic economy (67%)
   2. Ability to charge higher prices (10%)
   3. Historically low interest rates (5%)

Executives caution, however, that energy costs (38%) and rising
interest rates (22%) are potential impediments to further organic
growth.

Private Equity

Private equity professionals in Ohio say the deal size and type that
hold the most promise are:

   1. Middle market buyouts (59%)
   2. Small buyouts (18%)
   3. Later stage venture capital (18%)

Geographically, the areas with the greatest potential for private
equity investments are:

   1. United States (44%)
   2. Eastern Europe (19%)
   3. India (12%)
   4. Latin America (12%)

In addition to looking for new investments and exits for their
portfolio companies, 50% of the Ohio private equity professionals
surveyed say they are more focused on growing the top-lines of those
companies. The ways they plan to increase top-line growth are:

   1. Add to sales team (33%)
   2. Add to senior management team (25%)
   3. Enter into new strategic partnerships (25%)

In an increasingly competitive environment, the primary reason local
private equity professionals won their most recent deals is:

   1. Reputation or brand of their firm (57%)
   2. Industry sector knowledge (21%)
   3. Paid highest price (21%)
   4. Pre-existing relationship with company management (21%)
   5. Lack of competition (7%)

According to Buyouts Magazine, there were 223 LBO and mezzanine funds raising capital in the first quarter, which together amassed $34.75 billion in new commitments. The robust figures are coming on top of a record breaking year, as U.S. buyout shops closed on a total of $173.5 billion in 2005.

Meanwhile, venture firms are also returning to the market. Thomson Venture Economics and the National Venture Capital Association (NVCA) reported that there were 51 venture funds raising capital in the first quarter that collectively accumulated $6.5 billion.

The record fundraising has translated into a record amount of deals. U.S. firms completed roughly $42 billion worth of disclosed transactions in the first quarter, following 2005's total of $197.75 billion, according to Buyouts' data.

The deal sizes also appear to be growing. There's currently a roughly $22 billion bid on the table to take energy company Kinder Morgan private. While the deal, if completed, wouldn't unseat RJR Nabisco as the largest buyout of all time, it is clear RJR's $25 billion mark is within reach.

"The record amount of funds being raised hasn't shown any signs of letting up," said Buyouts Managing Editor Ken MacFadyen. "And as long as the debt markets remain accommodating and there are no hiccups in the economy, private equity deal volume can only be expected to continue its ascent as well."

Survey Methodology

The survey, conducted in May and June 2006, was completed by 46 Ohio ACG members and Thomson Financial customers. Respondents were comprised of private equity, venture capital and buyout firm members (17%); investment bankers, intermediaries, brokers (24%); lenders, finance providers (15%); corporate professionals, entrepreneurs (17%); and service providers, such as lawyers, workout specialists, accountants and consultants (26%).

About ACG

Founded in 1954, the Association for Corporate Growth (www.acg.org) is a global association for professionals involved in corporate growth, corporate development, and mergers and acquisitions. Today ACG stands at more than 10,000 members from corporations, private equity, finance, and professional service firms representing Fortune 500, Fortune1000, FTSE 100, and mid-market companies in 51 chapters in North America and Europe.

About Thomson Financial

Thomson Financial is a US$1.73 billion provider of information and technology solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation (www.thomson.com), a global leader in providing integrated information solutions to more than 20 million business and professional customers in the fields of law, tax, accounting, financial services, higher education, reference information, corporate e-learning and assessment, scientific research and healthcare. With revenues of US$8.10 billion, The Thomson Corporation lists its common shares on the New York and Toronto stock exchanges (NYSE:TOC)(TSX:TOC).