IESC Activates Gillette-Funded Economic Initiative in Ukraine.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--March 25, 2003

The International Executive Service Corps (IESC), one of the world's largest, non-profit economic development organizations, and The Gillette Company today announced that eight communities in Ukraine, six in the Kharkiv region, the others in Pavlograd and Pryluky, were selected for a special program managed by IESC and funded by Gillette.

The program provides assistance to help communities establish local economic development agencies.

The eight communities include Barvenkovo, Lubotin, Zolochev, Sakhnovshina, Oktyabrsky district in the City of Kharkiv, and Kharkiv district, all in the Kharkiv region; Pavlograd in the Dnipropetrovsk region; and Pryluky in the Chernihiv region.

The eight were selected from a field of 31 communities that submitted proposals under an innovative, economic development program funded by The Gillette Company and managed by IESC. The winners reflect a broad spectrum of Ukraine's economy -- three are farming areas and five are commercial and manufacturing centers.

Additional awards for five community organizations were also announced. They include the local economic development offices in Pechenegi, Bogodukhov and Chuguev, all in the Kharkiv region. In addition, the Association for Economic Development of Kharkiv Region Communities and the Foundation for Active Support of Employment, both in Kharkiv, will receive assistance.

"We remain passionate about supporting the communities in which we do business," commented John F. Manfredi, Senior Vice President, Corporate Affairs, The Gillette Company. "This project will be key to developing the economic environment in this region of the world and will clearly benefit both business and more importantly the men, women and families who seek financial stability within their communities."

In 1992, IESC started the first of several programs in Ukraine. Most recently, it managed The Alliance for Collaboration on Enterprise Development, a three-year program funded by the U.S. Agency for International Development (USAID) that fostered the growth of small and medium-sized enterprises. IESC currently assists Washington Group International on a public information program funded by the U.S. Department of Defense in Pavlograd.

On November 7, 2002, with funding from Gillette, a comprehensive economic development program was launched in Ukraine's Kharkiv region. Using a successful model developed by USAID, the program will support the region's economic growth.

At the launch, attended by more than 140 representatives of Ukrainian local governments, IESC announced a competition for community awards. According to Nikolay Yakimenko, IESC Regional Country Director in Ukraine, 31 proposals were submitted, more than expected, and all were outstanding.

Under the program, local government officials are receiving training in the skills essential to creating effective public-private partnerships. These partnerships are key to developing sustainable economic growth.

The program enlists the support of IESC's skilled experts, who are experienced in assisting clients achieve their objectives. One of those experts is Frank Henderson of Post Falls, Idaho, a former mayor and county commissioner, who is volunteering his time and expertise. As a veteran of other IESC projects in Hungary, Kazakhstan, Russia, Ukraine, and other countries, Mr. Henderson was selected to lead a volunteer team skilled in fostering public-private partnerships.

Later this spring, community participants will have a chance to observe successful economic development programs in other regions of Ukraine and Eastern Europe, when they participate in an "East-to-East Study Tour."

As a partner, USAID's Kiev mission is funding activities that complement the Gillette/IESC initiative. In addition, the following organizations are providing training and support: U.S.-Ukraine Foundation, Regional Business Assistance Center, Bizpro, Center for Economic Initiatives, Agency for Municipal Development, Perspectives, Peace Corps and the East-West Institute.

The program will conclude after a national conference on local economic development in June 2003. In late summer, the program is scheduled to be evaluated and results are expected to be published in the fall.

About The Gillette Company:

Headquartered in Boston, The Gillette Company is the world leader in male grooming, a category that includes blades, razors and shaving preparations. Gillette also holds the number one position worldwide in selected female grooming products and epilation devices. In addition, the Company is the world leader in alkaline batteries and in manual and power toothbrushes. For more information, visit the web site at www.gillette.com.

About IESC:

IESC is one of the largest, private, non-profit economic development organizations in the world. Since its founding in 1964, IESC has provided affordable, expert assistance to entrepreneurs, small and medium-sized enterprises, non-governmental organizations and government agencies in more than 120 countries of the developing world and emerging democracies. For more information, visit the web site at www.iesc.org.