Canada's Corporate Leaders Predict Continued Slow, Steady Economic Growth in TEC Index; CEOs Speak Out About Nation's Economic and Business Trends in Third Quarter TEC Index.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Sept. 25, 2002

TEC International, the world's largest organization of CEOs, today released results of the third quarter Canadian TEC Index, a quarterly survey of chief executives. The TEC Index, which polls CEOs nationwide on current economic trends and issues affecting today's business climate, is the only survey of its kind. According to the third quarter Canadian TEC Index, for which over 100 CEOs nationwide were polled during the week of September 9, leading indicators (revenue projections, business strategies and staffing plans) all suggest economic growth during the next 12 months.

Nearly 97 percent of CEOs surveyed predict Canada's economic health will continue on a slow, yet steady growth pattern, while 89 percent expect the economy will grow up to four percent by the end of this year. Interestingly, 56 percent of CEOs surveyed predict the Canadian dollar will be slightly stronger in 2003 than its U.S. counterpart; however, 57 percent expect the continuing trade disputes with the U.S. will have a notable impact on Canada's economy.

Regarding the impact of 9/11, 51 percent stated their business has remained steady, or even increased, since the terrorist attacks. Over 58 percent believe the attacks will not delay the nation's economic recovery.

Sales revenue projections are decidedly optimistic: 78 percent of CEOs surveyed project their companies' total sales revenues will increase during the next 12 months, with 34 percent expecting an increase of more than 10 percent. While half of CEOs surveyed cited that the current state of the economy has required them to modify their business strategies, 48 percent expect to increase capital expenditures during the next year. Investing in human capital tops the expenditures list with 55 percent of CEOs planning to increase staffing during the next year, and 25 percent reporting an expected increase of more than five percent. A surprising 57 percent, however, expect to face difficulties finding qualified personnel.

Founded in 1957, TEC International (www.teconline.com), which consists of more than 8,000 members in 14 countries worldwide, is the world's largest organization of CEOs and the global leader in executive development. TEC International is currently conducting an international Index that surveys TEC members worldwide for a global perspective on economic and topical issues.

About the TEC CEO Index

Canadian businesses with annual sales between $1 million and $3.5 billion represent the most vital component of the nation's economy. This small to mid-size business sector creates 75 percent of all new jobs and generates 80 percent of revenue. The opinions of these business leaders provide a clear snapshot of current economic market, as well as industry trends and their plans for growth over the next 12 months. These insights provide a leading indicator for employment, capital expenditure, sales, and revenue trends. The TEC Index is a compilation of responses from nearly 100 CEOs of small to mid-size companies, and is the only comprehensive report of their opinions and projections. The TEC Index is conducted quarterly by TEC International, the world's largest organization of CEOs of small to mid-sized businesses.

TEC CANADA SURVEY RESULTS

Aug-02
No. of respondents:       101
Total # of surveys sent:  292
Response Rate:            35%
Survey Tool:              Reciprix
Analysis Completed:       9/17/2002
Margin of Error:          +/-12.8% with 99% Confidence
                          +/-8.2% with a 90% Confidence


1)  How would you describe the current economic health in Canada?
                                                      Freq.    Percent
    Strong growth                                      15        15
    Slow steady growth                                 70        71
    Stagnant                                           13        13
    Decline                                             0         0

2)  How would you forecast the economic health in Canada over the next
    6 months?

    Strong growth                                      13        13
    Slow steady growth                                 71        72
    Stagnant                                           13        13
    Decline                                             1         1

3)  At what rate do you believe the economy will grow by the end of
    the year?

    0% or less                                          6         6
    1 - 4%                                             87        89
    5 - 10%                                             5         5
    10% and above                                       0         0

4)  How has the current state of the economy affected your business
    plans for Q4 and 2003? (Check all that apply)

    Reduced capital expenditures                       29        30
    Increased capital expenditures                     22        22
    Reduced operating expenses                         35        36
    Increased operating expenses                       19        19
    Modified business strategy                         49        50
    Delayed new product / service offerings            11        11
    No effect                                          24        24

5)  What are your personnel plans over the next twelve months?

    Increase total staffing by 1 - 5%                  29        30
    Increase total staffing by more than 5%            24        25
    Decrease total staffing by 1 - 5%                  13        13
    Decrease total staffing by more than 5%             7         7
    No change                                          24        25

6)  Do you plan to increase or decrease capital expenditures over the
    next twelve months?

    Increase by 1 - 10%                                35        36
    Increase by more than 10%                          15        15
    Decrease by 1 - 10%                                11        11
    Decrease by more than 10%                           5         5
    No change                                          32        33

7)  What are your total sales revenue projections for the next twelve
    months?

    Increase by 1 - 10%                                43        44
    Increase by 11 - 20%                               16        16
    Increase by more than 20%                          17        18
    Decrease by 1 - 10%                                 8         8
    Decrease by 11 - 20%                                3         3
    Decrease by more than 20%                           4         4
    No change                                           6         6

8)  How relevant is the Canadian/US Dollar differential to your
    business?

    Strong positive influence                          25        26
    Medium positive influence                          33        35
    Strong negative influence                          12        13
    Medium negative influence                          25        26

9)  Where do you see the Canadian dollar going in relation to the US
    dollar in 2003?

    Status quo                                         23        24
    Slightly weaker                                    19        20
    Considerably weaker                                 0         0
    Slightly stronger                                  54        56
    Considerably stronger                               1         1

10) What impact do you see continuing trade disputes with the United
    States having on the Canadian Economy?

    None                                                3         3
    Minor                                              39        40
    Medium                                             40        41
    Major                                              16        16

11) Do you see foresee difficulties in finding qualified personnel in
    2002?

    Yes                                                55        57
    No                                                 42        43

12) A year after 9/11, what has been the effect on your business?
    (Check all that apply)

    Travel cancelled                                   30        31
    Business cancelled
     (orders, sales, product development)              26        27
    Productivity reduced                               22        22
    No impact                                          41        42
    Other                                               7         7


        Effect on Business                           Freq.
        =======================================     =======
        Increase in Insurance/Security Products        3
        Negative Impact on Economy                     2
        Miscellaneous                                  3


13) Has your business slowed since 9/11?

    Less than 10%                                      28        29
    About 20%                                          17        18
    More than 50%                                       1         1
    Not at all                                         25        26
    Has actually increased                             26        27

14) Do you believe that the effects of 9/11 will delay economic
    recovery in Q4 2002 and Q1 2003?

    Yes                                                42        43
    No                                                 56        57

15) What has your business experienced as a result of 9/11?
    (Check all that apply)

    Lay-offs                                           11        11
    Delayed expansion                                  26        27
    Delayed hiring                                     13        14
    Reduction in spending                              32        33
    None of the above                                  52        54
    Other (___________)                                 2         2


        Business Experienced as Result of 9/11       Freq.
        =======================================     =======
        Need For Additional Insurance                  1
        9/11 Added to Current Market Slowing           1
        Increase in Business & More Opportunities      1