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U.S. INVESTORS IDENTIFY SEVEN DEADLY SINS OF FINANCIAL COMMUNICATIONS NON-U.S. COMPANY PRESENTATIONS FOUND LACKING

U.S. INVESTORS IDENTIFY SEVEN DEADLY SINS OF FINANCIAL COMMUNICATIONS
 NON-U.S. COMPANY PRESENTATIONS FOUND LACKING
 NEW YORK, Sept. 23 /PRNewswire/ -- With global investing on the rise, more and more U.S. investors are looking for investment opportunities offshore. In the process, they are discovering serious deficiencies in the style and content of financial communications by international companies seeking to raise capital and attract a shareholder base in the U.S.
 This is the conclusion of a survey conducted by Broadgate Communications, an affiliate of Broadgate Consultants, Inc. Interviews with sixty investment professionals revealed the "seven deadly sins" committed all too frequently by non-U.S. companies:
 -- Lack of Candor; U.S. investors complain that only the home market gets the real story, and an edited, "sanitized" picture of the company is presented by executives to U.S. audiences.
 -- Sporadic, Unfocused Meetings: Many foreign companies were criticized for their infrequent appearances in the U.S. In addition, when meetings are held, their effectiveness is often impaired by a lack of focus.
 -- Poorly Articulated Strategy: International companies frequently fail to clearly express their market portion and where the company is headed. Since non-U.S. companies usually aren't covered indepth by the U.S. media, it is extremely important for management to explain the company's strategy, its position within the industry and its prospects. Several survey respondents mentioned the refusal to divulge the status of ongoing research and the outlook for new products as particular problems of foreign company communications.
 -- Non-U.S. Accounting Practices: Few investors are really familiar with foreign accounting practices and find non-U.S. company financial statements frustrating. Their job can be made easier if foreign companies summarize key differences between U.S. and home county GAAP.
 -- Unclear Chain of Command: U.S. investors need to understand the hierarchy and decision-making structure and who calls the shots. Many foreign companies were described as unwilling to define responsibility for past performance.
 -- Lack of Accessibility: Investors need a point of contact for future follow up, a contact who is available, knowledgeable and accessible. Several respondents felt that it's not worth the effort it takes to get answers from overseas. One investor said, "I've wasted so much time trying to reach overseas contracts that I won't even try anymore."
 -- Limited Disclosure: Somewhat of an umbrella category, this was the most repeated complaint about non-U.S. companies. U.S. investors are inundated with information about the U.S. companies they follow, and non-U.S. companies typically compare very unfavorably on both quality and quantity of information provided.
 Even though several companies were noted for their generally high level of presentations, no one company was singled out as consistently addressing all seven of the issues. The consensus is that international companies need to carefully prepare before coming to the U.S. markets to raise capital.
 Broadgate Communications, an affiliate of Broadgate Consultants, Inc., was formed to ensure that overseas companies have expert assistance when preparing presentation for the U.S. capital markets. Response thus far has been excellent.
 Broadgate Communications is headed by managing director, Christopher R.R. Peake and Richard A. Southern. Their professional backgrounds combine experience in television, television news and presentation skills training.
 Broadgate Consultants, Inc. provides capital markets research and investor relations advice to companies wishing to develop and sustain a market for their securities globally. Broadgate recently completed an International Investment Trends Survey which revealed a strong commitment to global diversification on the part of sophisticated U.S. market participant.
 -0- 9/23/92
 /CONTACT: Eileen M. Halsch of Broadgate Consultants, 212-229-2222/ CO: Broadgate Consultants, Inc. ST: New York IN: FIN SU: ECO


AH-LR -- NY044 -- 2629 09/23/92 12:01 EDT
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Date:Sep 23, 1992
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