Calvert Proposes Diversity Language For Corporate Governance and Nominating Committees.

Business Editors

BETHESDA, Md.--(BUSINESS WIRE)--May 5, 2003

New Requirement for a Majority of Independent Directors Creates Unique Opportunity to Bring Diversity to Corporate Boards

Calvert, the nation's largest family of socially responsible funds, today announced that it has issued model charter language for corporate nominating and governance committees focused on attaining diversity in corporate board rooms.

In releasing its new charter language, the firm argues that diversity is a critical attribute to a well-functioning board and an essential measure of good corporate governance.

"Against the back drop of Sarbanes-Oxley reforms and proposed New York Stock Exchange rules requiring a majority of independent directors and key committees composed exclusively of independent directors, we have an historic opportunity to change the face of corporate boards", said Barbara J. Krumsiek, President & CEO of Calvert. "As potentially hundreds of corporate boards bring on new members, companies have an unprecedented opportunity to increase the number of women and people of color on their boards, which is an excellent way to assure the diversity of experience and perspective needed for sound corporate governance," Ms. Krumsiek added.

Under the proposed NYSE listing standards, companies must have a nominating committee comprised solely of independent directors and a written charter describing the committee's purpose and principles.

Calvert's Model Nominating Committee Charter Language on Board Diversity complements these requirements by giving companies "the means to formalize their commitments to an independent and inclusive board."

To date, progress in cracking the "boardroom ceiling" has been slow. Women, who account for nearly half the nation's workforce, college graduates, and talent pool, occupy just 14% of Fortune 1,000 board seats, while African Americans hold just 3% and Hispanics only 1%.

Calvert's Model Nominating Committee Charter Language includes the following provisions:

-- The Nominating Committee shall advise the Board on matters of

diversity including race, gender, culture, thought, and

geography, and recommend, as necessary, measures contributing

to a Board that, as a whole, reflects a range of viewpoints,

backgrounds, skills, experience, and expertise.

-- The Nominating Committee shall develop criteria for Board

membership that strives to attain diverse backgrounds and

skills by searching for candidates not only from traditional

corporate environments, but from government, academia, private

enterprise, and non-profit organizations as well.

-- The Nominating Committee shall develop recruitment protocols

that seek to include diverse candidates as part of every

director search.

Calvert's model charter language has been endorsed by the Connecticut State Treasurer's Office, which launched its own board diversity program last year. "Calvert's model charter language creates a roadmap for nominating committees to commit to board diversity," said Denise L. Nappier, Treasurer of the State of Connecticut and principle fiduciary of the $17 billion Connecticut Retirement Plan and Trust Fund. "As I continue to talk with corporate leaders on this effort, I will share the Calvert model charter language and ask them to include this commitment to diversity in their nominating committee charters."

"I commend Calvert on their leadership on this important issue and look forward to continuing to work with them and other institutional investors in making true board diversity a reality," added Ms. Nappier.

Calvert also recently contacted over 600 companies in the Calvert Social Index Fund citing the opportunity the new NYSE listing requirements will present and encouraging the companies to proactively recruit qualified women and minority board candidates as they take the necessary steps to comply.

Calvert also filed shareholder resolutions with nine companies this year, asking the companies to diversify their boards of directors.

"We are committed to advancing board diversity as a critical component of good corporate governance and overall corporate responsibility," said Ms. Krumsiek. "In the aftermath of Enron and other corporate scandals, there can be no doubt that America's corporations need to broaden their perspective and bring more people to the table. In the end, this will not only promote greater diversity, but I am convinced it will be good for business as well."

For more information on Calvert's shareholder resolutions and to read an issue brief on board diversity authored by Calvert's shareholder research staff, click on www.calvert.com.

Calvert is the nation's largest socially responsible mutual fund firm with approximately $8.8 billion in assets under management. Calvert offers thirty funds that allow individual and institutional investors to pursue a broad range of investment objectives within a single fund family.

Calvert launched the Calvert Social Index(TM) a benchmark for measuring the performance of large, U.S.-based socially responsible companies. Calvert also has an extensive lineup of tax-free and taxable fixed income investments. For more information on Calvert, click on www.calvert.com.

Calvert mutual funds are underwritten and distributed by Calvert Distributors Inc., member NASD, a subsidiary of Calvert Group. (4/03,4369)

                         Nominating Committee
                        Model Charter Language
                                  On
                            Board Diversity
                             Introduction

Calvert's goal in developing model charter language on board diversity
is to give companies a means to formalize their commitment to an
independent and inclusive board. We have taken the approach of
suggesting language appropriate for different sections of a Nominating
Committee Charter, based on the style and approach of the Board to the
Charter construction. For ease of reference, we have included in bold
below a suggested table of contents for a Nominating Committee
Charter. We have indicated under which heading Calvert's model
language on board diversity may be inserted.

    I. Purpose

        --  (1) The Board believes that diversity is an important
            attribute of a well-functioning board. It is the
            responsibility of the Nominating Committee to recommend
            for selection qualified candidates to serve as directors
            of the Company. Among the responsibilities of the
            Nominating Committee shall be to advise the Board on
            matters of diversity including race, gender, culture,
            thought and geography, and recommend, as necessary,
            measures contributing to a Board, that as a whole,
            reflects a range of viewpoints, backgrounds, skills,
            experience, and expertise.

    II.  Organization

    III. Composition of the Committee

    IV.  Meetings and Procedures of the Committee

    V.   Goals and Responsibilities

        --  (2) The Nominating Committee shall develop a set of
            criteria for Board membership that strives to attain a
            diversity of background and skills for the Board. The
            Committee shall also create a search protocol that seeks
            qualified Board candidates from, among other areas, the
            traditional corporate environment, government, academia,
            private enterprise, non-profit organizations, and
            professions such as accounting, human resources, and legal
            services.

        --  (3) In the process of searching for qualified persons to
            serve on the Board the Nominating Committee shall strive
            for the inclusion of diverse groups, knowledge, and
            viewpoints. To accomplish this, the Committee may retain
            an executive search firm to help meet the Committee's
            diversity objective as well as form alliances with
            organizations representing the interests of women and
            minorities. In connection with its efforts to create and
            maintain a diverse Board, the Nominating Committee will:

                (1) (3a) Develop recruitment protocols that seek to
                include diverse candidates in any director search.
                These protocols should take into account that
                qualified, but often overlooked, candidates may be
                found in a broad array of organizations, including
                academic institutions, privately held businesses,
                nonprofit organizations, and trade associations, in
                addition to the traditional candidate pool of
                corporate directors and officers.

                (2) (3b) Strive to use, to their fullest potential,
                the current network of organizations and trade groups
                that may help identify diverse candidates.

                (3) (3c)Periodically review director recruitment and
                selection protocols so that diversity remains a
                component of any director search.

    --  (4) The Nominating Committee shall seek diverse populations,
        expertise, and viewpoints for representation on the Board. The
        Board recognizes, however, that the representation of specific
        may vary over time.

    VI.  Investigations and Studies: Outside Advisers

    VII. Performance Evaluations

        --  (5) The Nominating Committee shall periodically review
            Board composition to ensure that the Board reflects a
            balance of knowledge, experience, skills, expertise and
            diversity, including racial and gender diversity required
            for the Board to fulfill its duties.