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Microsoft Earns Best Corporate Reputation in 2004 According to Delahaye Index; Corporate News Trends Positive in 2004; Kmart, Wachovia and FedEx are Most Improved
[February 08, 2005]

Microsoft Earns Best Corporate Reputation in 2004 According to Delahaye Index; Corporate News Trends Positive in 2004; Kmart, Wachovia and FedEx are Most Improved


NORWALK, Conn. --(Business Wire)-- Feb. 8, 2005 -- Elevated by news of strong revenue growth, product development and financial management, Microsoft Corp. (Nasdaq: MSFT) achieved the best reputation among the 100 largest U.S. companies in 2004, according to the Delahaye Index, a quarterly assessment of how news media coverage affects corporate reputation.



Higher volumes of positive news about Microsoft's favorable earnings, innovative products and services, such as Windows XP Media Center and MSN Desktop Search, drove positive media coverage for three consecutive quarters, outweighing negative news about the company's anti-trust battle with the European Union.

Delahaye President, Mark Weiner, stated that, "corporate reputation is uniquely measurable through the media, as the news has a distinct way of both affecting and reflecting public sentiment. Major findings of our 2004 study, in which we analyzed 300,000 stories, indicate two primary trends: The first is that most corporate reputations are driven by financial news, and the second is that corporate news is generally positive for the second consecutive year. Looking at these two trends in tandem, one can infer that the economic climate for America's largest companies was favorable in 2004, and to the extent that news coverage helps shape public opinion and that corporate reputation contributes to business performance, we foresee that favorable corporate momentum will continue into 2005."


The Index is conducted by Delahaye, a division of Bacon's Information Inc., a provider of media research, distribution, monitoring and evaluation services for public relations, marketing and corporate communications professionals.

News of increased worldwide demand for microprocessors and its affect on revenues, elevated the world's leading chip maker, Intel Corporation (Nasdaq: INTC) into second place for the year.

Demonstrating the most improvement, Kmart Corporation (Nasdaq: KMRT) climbed 66 spots since 2003, gaining positive media attention in 2004 with the acquisition of Sears, thereby mounting a challenge to retail giant Wal-Mart (NYSE: WMT). Despite news of workplace bias and community backlash, Wal-Mart landed in the number three spot for the second consecutive year. The Delahaye Index also revealed that FedEx Corporation (NYSW: FDX) moved up 16 places on the Index, due to news of strong earnings and its acquisition of Kinko's at the end of 2003.

After a slow start in 2004, The Walt Disney Company (NYSE: DIS) regained ground to finish in fourth place as it catapulted back to a higher ranking with speculation of selling its lagging retail stores after a first quarter CEO crisis and a hostile takeover bid. Verizon Communications (NYSE: VZ) affirmed its bellwether status for the telecommunications industry with its inclusion in the elite Dow Jones Industrial Average. The auspicious event capped a high-volume of favorable news that boosted the telecom giant to fifth place in 2004.

For the second consecutive year, results also found that the financial service sector was the strongest of all sectors, with Citigroup, Goldman Sachs, American Express, Morgan Stanley and Wachovia Corporation claiming five of the top 20 rankings. Rising from national obscurity in 2002, Wachovia (NYSE: WB) ranked 19th in 2004, taking their place among the major financial giants.

Overall, the positive tone of news coverage for 2004 improved from 2003, reflecting a shift in stories about financial decline, to stories about corporate advancement and stronger economic performance. This is evident as all 100 companies scored in positive territory in 2004.

"The Delahaye Index is driven by two catalysts for corporate reputation-building: business performance, as reflected in the quality of news, and visibility, as reflected in the volume of news coverage," stated Senior Vice President K.C. Brown. "As such, companies with excellent business fundamentals can be affected adversely if they do not generate sufficient visibility. Conversely, companies such as Wal-Mart, which may have less positive or less impactful media coverage, can improve their results by consistently garnering a great volume of marginally positive media attention."

2004 Delahaye Index: Top Ten Companies

1. Microsoft Corporation

2. Intel Corporation

3. Wal-Mart Stores, Inc.

4. The Walt Disney Company

5. Verizon Communications, Inc.

6. IBM

7. General Motors Corporation

8. The Boeing Company

9. Citigroup Inc.

10. General Electric Company

Methodology of the 2004 Delahaye Index

Delahaye begins by gathering news from America's most prominent national news sources. From the New York Times and The Wall Street Journal to Fortune, ABC World News Tonight and Bloomberg, Delahaye captures news from all of the nation's most influential general and business media. The 2004 Delahaye Index includes analysis of different print and broadcast news items to measure the reputations of the Top 100 U.S. companies.

Each company's score is based on how many positive and negative reputation-driving attributes are found within each story. These attributes are classified into five dimensions: stakeholder relations, financial management, products and services, organizational integrity and organizational strength.

About Delahaye:

Delahaye (www.delahaye.com), a division of Bacon's Information Inc., is an international, award-winning research and analysis firm that specializes in helping clients understand and actively manage their public relations and communications programs. Through Delahaye, clients gain the market intelligence they need to improve communications effectiveness and return-on-investment. The company has domestic offices in Norwalk, Conn., Portsmouth, N.H., and Washington, with international headquarters in London and partners around the globe.

About Bacon's Information Inc.:

Bacon's (www.bacons.com) assists communications, marketing and PR professionals maximize results in media relations. Bacon's is the first provider of integrated service solutions designed to give clients the ability to target their messages efficiently, customize distribution of information and to monitor all media to determine if PR objectives have been met.

About Observer AB:

Observer AB is the world leader in media research, distribution, monitoring and evaluation services. Observer provides knowledge, resources and information to businesses, organizations and public agencies, improving their ability to monitor and communicate more effectively with their various constituencies. Observer's services facilitate client communication processes and help its clients make informed business decisions. The company's nearly 50,000 clients across the globe are active in public relations, investor relations as well as corporate communications. Observer AB has annual earnings of nearly SEK 1.5 billion, and has 2,500 employees in the United States, United Kingdom, Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, Ireland, Estonia, Latvia, and Lithuania

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