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PricewaterhouseCoopers' "Trendsetter Barometer" interviewed CEOs of 407 product and service companies identified in the media as the fastest growing U.S. businesses over the last five
years. The surveyed companies range in size from approximately $5 million to $100 million in revenue/sales.

NEW YORK, June 24, 2002 CEOs of America's fastest-growing
companies say that innovation—more than any other attribute--gives them a distinct advantage over their toughest competitors. And, over the next 12 months, those excelling in
innovation expect to be rewarded with 30 percent faster revenue growth than their peers, according to PricewaterhouseCoopers' latest "Trendsetter Barometer," released today.

Over three-fourths (77 percent) of "Trendsetter" CEOs rate their company as more innovative than their one or two strongest competitors—making this their highest-ranking and clearest
competitive advantage. A greater number of high tech than non-tech CEOs see their business as more innovative--81 percent versus 74 percent.

In addition, nearly half (48 percent) of growth company chiefs believe their new product development capabilities represent a major competitive advantage. Again, more high tech than
non-tech CEOs rate their product development as better--54 percent versus 41 percent.

"Market driven innovation and new product development stand out as the main power sources for America's fastest growing companies--particularly those that are technology based," noted
Steve Hamm, managing partner for PricewaterhouseCoopers' middle market advisory services.

In addition, "Trendsetter" CEOs cited their brand recognition in the marketplace (44 percent), marketing (41 percent) and direct selling (38 percent) as better than their strongest competitors.
These attributes all ranked higher among non-tech than high tech companies.

"While important, these three factors have lesser clout in the total scheme of things," said Hamm. "This may be because of the static that accompanies them. Today it seems like there's a
tsunami of new brands and supporting advertising; spin-offs and acquisitions; strategic alliances; joint ventures; and licensed intellectual property. All of this contributes to confusion in the
marketplace," he noted.

Four other competitive edges cited were at lower levels of claimed superiority, including manufacturing or production (31 percent), distribution network or supply chain (29 percent), Internet sales (26 percent overall, but 31 percent for those selling directly over
the Net), and international sales (22 percent overall, but 34 percent for those selling abroad).

Payoffs

"Trendsetter" CEOs citing innovation as a competitive advantage for their company are expecting 16.2 percent revenue growth over the next 12 months, versus 12.5 percent for their non-innovative peers—a 30 percent edge.

And, over the next 12 months, 42 percent of innovative companies expect to make major new investments in business growth, versus 30 percent for non-innovators—40 percent more.
Also, 51 percent plan to make higher investments in information technology, versus 38 percent—a 34 percent difference.

"It's a virtuous cycle when companies achieve more, then turn around and invest more in their future," added Hamm. "This is the way it's supposed to work."

PricewaterhouseCoopers' "Trendsetter Barometer" is developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc.

PricewaterhouseCoopers (www.pwcglobal.com) is the world's largest professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150
countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world.
PricewaterhouseCoopers refers to the member firms of the worldwide PricewaterhouseCoopers organization.

If you have a question about this "Trendsetter Barometer" survey, please contact Pete Collins, survey director and publisher, at 646-394-4496 or e-mail to: pete.collins@us.pwcglobal.com

For more information about Barometer surveys, including recent economic trend data and topical issues, please visit our web site:
www.barometersurveys.com