Cantu Endowment Addresses Hispanic Student Retention.

COLLEGE STATION, Texas--(BUSINESS WIRE)--Feb. 8, 1999--One of America's leading businessmen is endowing a major initiative that will seek solutions to the nation's serious Hispanic student drop-out problem. Carlos H. Cantu, president and CEO of ServiceMaster Company, has personally committed $1 million to establish the Carlos H. Cantu Hispanic Education and Opportunity Endowment at Texas A&M University.

Cantu says several disturbing statistics led him to fund the endowment: Hispanic students are nearly four times more likely than Anglos and more than twice as likely as African-Americans to drop out before earning their high school diplomas. Approximately 500,000 eighth-twelfth grade Hispanic students drop out of school annually.

"We are losing leaders of the future, and it is our responsibility to address this problem before it is beyond repair," says Cantu, a 1955 graduate of Texas A&M. "My hope is that this endowment will help us determine the root cause and hopefully come up with some answers."

The drop-out rate among Hispanics is multi-generational and hasn't changed for 25 years, says Rogelio Saenz, professor and sociology department head at Texas A&M. This "doesn't bode well for the future," Saenz adds, citing projections that in the next 50 years Hispanics will account for almost 60 percent of the growth in the U.S. work force.

Cantu also is concerned about an educational deficit in America's future work force. "The implications for the nation's tax base, its social services system and its ability to compete globally are significant," he says.

Cantu, the son of Mexican immigrants, believes that education is "the great equalizer." He credits his parents with emphasizing the role of education in future success. He received his primary education in south Texas and later earned a bachelor's degree in agricultural economics at Texas A&M.

As president of Terminix from 1977-91, he built that company into the nation's No. 1 pest-control business. Terminix was purchased by ServiceMaster in 1986. Cantu became ServiceMaster president and CEO in 1994 and still heads the company, which serves more than 10 million customers in the United States and 40 other countries and earns annual revenue exceeding $6.3 billion. ServiceMaster is the parent company of Terminix, TruGreen-ChemLawn, Merry Maids and other market leading companies. For his business and civic leadership, Cantu received the Horatio Alger Award in 1997.

In addition to funding the Texas A&M endowment, Cantu will lead its advisory board. The board, which will include representatives from corporations, non-profit agencies and government entities, will raise additional funds and oversee endowment activities. Saenz, who will serve as endowment coordinator, says it will fund practical, applied research conducted by Texas A&M faculty and students in several school districts. The university also plans a national conference for funding agencies, public policy makers, educators and academics.

Texas A&M Executive Vice President and Provost Ronald G. Douglas says the university shares Cantu's concern about Hispanic student retention rates. "Texas A&M is extremely honored to receive this endowment from Mr. Cantu," Douglas said. "We look forward to the research and progress that will result from his generosity."

                              FACT SHEET
          HISPANIC DEMOGRAPHIC AND SCHOOL RETENTION PATTERNS

     According to the U.S. Bureau of the Census, Hispanics, with a
     population of approximately 30.8 million, accounted for 11.4
     percent of the United States population. (1)

     Hispanics are projected to become the largest U.S. minority group
     sometime between 2005 and 2010. (2)

     U.S. Bureau of the Census population projections indicate that
     the Hispanic population could account for 48 percent of the
     projected growth in the national population between 1990 and
     2040. (2)

     Population projections for 2050 suggest that Hispanics could
     comprise 31 percent of the national population less than 18 years
     of age, 24 percent of the population 18-64 years of age, and 18
     percent of the population 65 years of age and older. (2)

     Hispanics have the highest school dropout among the nation's
     racial and ethnic groups. (3)

     According to a recent report issued by the U.S. Department of
     Education's National Center for Education Statistics, 29 percent
     of Hispanics 16-24 years of age had not completed high school and
     were not currently enrolled in school, a rate that is four times
     higher than that of non-Hispanic whites. (3)

     While dropout rates of other racial and ethnic groups have
     declined over the last two decades, this has not been the case
     for Hispanics. (3)

     Earnings increase with level of education completed. The median
     annual earnings of Hispanic men working on a year-round,
     full-time basis during the 1994-96 period were $16,510 for those
     completing 9-11 years of education, $21,118 for those with a high
     school diploma, $25,361 for those with some college, and $34,400
     for those with a bachelor's degree. The comparable figures for
     Hispanic women were $13,699 for those with 9-11 years, $17,708
     for those with a high school diploma, $21,412 for those with some
     college, and $29,090 for those with a bachelor's degree. (4)

Sources

(1) National Estimates: Annual Population Estimates by Sex, Race and
Hispanic Origin, Selected Years from 1990 to 1998. U.S. Bureau of the
Census, 1998.

(2) Population Projections of the United States by Age, Sex, Race and
Hispanic Origin: 1995 to 2050. Current Population Reports, P25-1130.
U.S. Bureau of the Census, 1996.

(3) Dropout Rates in the United States: 1996. U.S. Department of
Education, National Center for Education Statistics, 1997.

(4) The Condition of Education 1998, U.S. Department of Education,
National Center for Education Statistics, 1997.