Nordstrom Challenged by Domini Social Investments On Sweatshop Issue.

Business Editors

SEATTLE--(BUSINESS WIRE)--May 14, 2001

Nordstrom Annual Meeting, Tuesday, May 15, 2001, 11:00 a.m., PST 

John W. Nordstrom Room, Nordstrom, 1617 Sixth Avenue, 5th floor,

Seattle, WA

On Tuesday, for the second straight year, shareholders of Nordstrom, Inc. (Ticker: JWN) will vote on a resolution filed by Domini Social Investments asking the company to report on its efforts to deter sweatshop practices at hundreds of its contract suppliers around the world. Domini Social Investments manages a $1.7 billion family of socially screened mutual funds, and holds 37,700 shares of Nordstrom.

The shareholder proponents contend the company should be doing more to ensure that a code of conduct that Nordstrom has adopted is actually enforced at supplier plants around the world, and should provide a public report on its progress. Nordstrom settled a lawsuit in 1999 alleging illegal labor practices by its suppliers in the U.S. territory of Saipan.

A similar resolution presented at last year's annual meeting received the support of 8.8 million shares or 9.9% of all shares voted. An additional 4.5% of shares that abstained meant that nearly 15% of Nordstrom's shareholders did not concur with management's position. Despite these sentiments, company management still has not agreed to provide a compliance report on sweatshop-related issues.

"Nordstrom's good name is its most valuable asset," said Amy Domini, Founder and Managing Principal of Domini Social Investments. "We've been proud owners of Nordstrom stock in part because of the company's impressive record as a caring employer and as a good corporate citizen. It is disheartening to find company management so rigid on this issue. Sweatshop abuses are a disgrace that can only be stopped if companies like Nordstrom step up to the plate and take responsibility for holding their suppliers accountable." The company maintains that it has made sufficient information available regarding progress in achieving compliance with its vendor standards and that no report is necessary, a position challenged by Domini. "The company is willing to discuss the basic components of the program but not how well they are performing," said Adam Kanzer, Domini Social Investments' General Counsel. "That's like saying `we had a very successful financial quarter' but, sorry, we can't show you the earnings figures."

Domini's resolution requests that the company provide a public accountability mechanism such as an annual report to shareholders on progress made and challenges that remain. The report could provide information about the numbers of facilities audited, the pass/fail rate, reasons for failure, and a discussion of progress made and problems that remain at facilities with the most code violations. Reebok, Mattel, Liz Claiborne and other companies have issued detailed reports on their efforts to monitor their contract supply facilities. Domini's resolution was co-filed with Walden Asset Management of Boston.

Nordstrom shareholders will also vote on a second sweatshop-related resolution, filed by the New York City Employees Retirement System. It asks the company to commit to full implementation of the International Labor Organization's human rights standards by international suppliers and to commit to a program of outside independent monitoring of compliance with these standards. Domini Social Investments has announced that it will be voting to support this resolution as well.

Domini Social Investments manages more than $1.7 billion dollars in assets for individual and institutional investors seeking to incorporate social and environmental criteria into their investment decisions. The firm's flagship product, the Domini Social Equity Fund (Ticker: DSEFX), is the nation's oldest and largest socially and environmentally screened index fund. The firm also offers the Domini Social Bond Fund (Ticker: DSBFX) and an FDIC-insured money market account through its partnership with ShoreBank, each of which include a community development component.

As of March 31, 2001, Nordstrom, Inc., Reebok International Ltd, Mattel, Inc. and Liz Claiborne, Inc. represented 0.04%, 0.03%, 0.14% and 0.05%, respectively, of the Domini Social Index Portfolio (DSIP). The DSIP's holdings are subject to change. Unlike other mutual funds, the Domini Social Equity Fund (DSEF) seeks to achieve its investment objective by investing all of its investable assets in the DSIP, a separate portfolio with an identical investment objective. Return and principal value of an investment in the DSEF will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. You may lose money. Please obtain a prospectus with more complete information on charges, expenses and risks by calling 1-800-762-6814 or online at www.domini.com. Read it carefully before you invest or send money. DSIL Investment Services LLC (DSILD), Distributor. The Domini Social Equity Fund is not affiliated with any bank and is not insured. DSILD and ShoreBank are not affiliated. 5/01