Snow, Rain Prompt Bear Stearns to Revise Super Bowl Dollar Impact.

Business/Entertainment &Sports Editors

NEW YORK--(BUSINESS WIRE)--Jan. 28, 2000

Jason Ader Says Atlanta Will Reap $285 Million,

Down From $410 million

Persistent snow and rain this week expected to continue at times through Sunday have prompted Bear Stearns to revise downward its forecast for the economic impact of Super Bowl XXXIV on Atlanta, the firm's senior managing director Jason Ader said live today on CNN Financial News.

&uot;Inclement weather will bedevil the championship game, prompting some travel firms and visitors to alter or cancel their travel plans,&uot; Mr. Ader said Friday. &uot;We estimate that the poor weather conditions will slice $125 million off our original $410 million estimate.&uot;

For its analysis, Bear Stearns used a proprietary forecasting model which factors prior-year Super Bowl economic figures, as well as; current-year seating-capacity, lodging and restaurant supply, air/rail and road access, area consumer demand estimates and consensus macroeconomic assumptions.

Still, Super Bowl XXXIV will not be a total loss for Atlanta, Mr. Ader noted.

&uot;Enthusiastic tourists eager to spend money on lodging, food and beverage, souvenirs, transportation and other items spell a windfall for Atlanta during the Super Bowl period,&uot; Mr. Ader said. &uot;The championship game is still the nation's largest sports celebration, and fans, including major corporate figures, visit and infuse the region with more capital than traditional tourists.&uot;

Mr. Ader asserts that, among other factors, a booming consumer economy will help Atlanta come near the $396 million economic impact on Miami of Super Bowl XXXIII and the $295 million economic impact of Super Bowl XXXII on San Diego. Those historical figures are from studies performed by the Sports Management and Research Institute and PricewaterhouseCoopers, respectively.

Another benefit of the Super Bowl is the incalculable positive worldwide media coverage that Atlanta will receive, as billions watch the game on ABC. The Bear Stearns analyst believes that the exposure will bring even more tourism to the community in months and years ahead.

Atlanta Hotels Are Big Gainers

&uot;Largely on the strength of Super Bowl-based demand, average daily hotel room rates in the greater Miami region rose from $118 per night in January 1998 to $138 per night in January 1999, nearly a 20 percent increase year-over-year,&uot; Mr. Ader remarked. &uot;Accordingly, we expect a somewhat less robust increase in Atlanta's average daily hotel room rates this month above their traditional January level.&uot;

Game Has Impact Beyond Atlanta

The positive economic effects of the Super Bowl are felt in the far-away desert gaming capital of Nevada. Wagers on the Super Bowl generate approximately $70 million annually for Nevada's legal sports books, according to the American Gaming Association.

&uot;The actual financial benefit to public casino companies of Super Bowl wagering can vary enormously year to year,&uot; Mr. Ader noted. &uot;In recent years, casinos' profits from such wagering have ranged from 0.6 percent of gross wagers to as high 3.8 percent.&uot;

America's other legal gaming state, New Jersey, currently does not permit wagering on sporting events. However, according to Mr. Ader, that could change. &uot;Legal sports wagering is a comparatively low-cost revenue source for casinos. There are some legislators who favor making such activity legal in New Jersey, enabling the industry and state to share in the boom that stems from fans' legal betting on their favorite teams,&uot; Mr. Ader says.

For more information or to speak with Jason Ader, please contact Christina Conde at 212-272-4320 or Michael Tew at [phone].

Founded in 1923, Bear, Stearns &Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). With approximately $21.4 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers professional and correspondent clearing, including securities lending. Headquartered in New York City, the company has over 10,000 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, Puerto Rico and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our Web site at http://www.bearstearns.com.

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