Chattanooga Named ``One of the Nation's Hottest Cities for Attracting Business''.

Business Editors/Feature Writers

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Feb. 22, 2000

Expansion Management Magazine named Chattanooga one of the nation's 50 Hottest Cities for attracting business in its January issue. A panel of national site selection consultants ranked Chattanooga 37th, ahead of such cities as Seattle, Chicago and Orlando. This recognition arrives in the midst of a record construction boom and unprecedented efforts to boost economic growth.

-- The Chattanooga Area Chamber of Commerce recently engaged Dr. Michael Porter
of the Harvard Business School to facilitate the creation of a strategic plan
to enhance economic growth by building on the region's competitive advantages.
"Through this Chattanooga Regional Growth Initiative, we are working to grow
our economy in the same way we began to revitalize our community -- by coming
together as a community to create a plan of action that we can all support,"
said Jim Kennedy, CEO of the Chamber.

-- Mr. Kennedy also cited the hiring of Walter Sprouse as the Chamber's vice
president for economic development a year ago. "Walt brought great experience
with him and instituted an existing industry program that is quickly becoming
the talk of the region."

-- Chattanooga is already in the midst of a construction boom that has pushed
1999 building permits above $300 million to the highest level on record.
Projects under way include new and expanded industrial plants, new hotels and
housing downtown, a downtown office building, and a new minor league baseball
stadium overlooking the Tennessee Aquarium.

The Expansion Management survey measured how cities across the country are seen in the eyes of those who make their living helping companies to expand or relocate. Seventy prominent national site selection consultants were surveyed for the second straight year to find the 50 most attractive cities to expanding or relocating companies. They were asked to list their top city choices, taking into consideration such things as business climate, work force quality, operating costs, incentive programs, and ease of working with local officials.

"One common thread runs between them -- they all captured the attention of consultants who are helping businesses find a good location," wrote Rachel Hedgcoth, associate editor for Expansion Management.

Among the 10 most important factors mentioned in the article that attract business are public/private partnerships. "The attitude and relationship of the public and private sectors can speak volumes about a community," Hedgcoth wrote. "Local actions exemplify how easy -- or difficult -- the environment might be for a relocating or expanding company."

Quality of life was another top factor because companies "want to be in a place where people like to live. It can be good for business, good for recruiting, and a climate with few extremes is less likely to interfere with transportation dependability," said Hedgcoth.