MCKIE/HEADSTROM PR ANNOUNCES SILICON VALLEY PR INDUSTRY SURVEY RESULTS

First Annual Silicon Valley -- State of the PR Industry Survey Report Shows Spending Down in 2002 and to Remain Down in 2003; Bright Spot Indicates PR Professionals Being More Effective with Less

Mountain View, Calif. -- October 18, 2002 -- McKie/Headstrom PR (www.mhpr.com), an award-winning, technology-focused public relations agency today unveiled the results of their First Annual Silicon Valley -- State of the PR Industry Survey Report." 2002 report findings contrast national trends with Bay Area respondents reporting PR spending down in Silicon Valley and to remain down through 2003; yet PR professionals are providing more with less and continue to demonstrate near 90-percent ROI satisfaction levels.

During 2002, several independent surveys showed the PR industry in an up-beat, growth-oriented position, yet I know of more PR professionals now who are out of work than I have ever seen during the past 10 years," said Chris McKie, principal and founder of McKie/Headstrom. Clearly, what is happening in Silicon Valley is not being captured or reflected in these broader surveys."

Silicon Valley PR 2002 -- Key Findings
-   PR spending is down and will continue to be down in 2003 -- a majority of respondents report spending was down or flat for 2002 versus 2001, and more than half report no changes to their PR spending for 2003;
-   PR is doing more with less -- the good news for PR professionals is that despite PR budget cutbacks, more than half of the respondents indicate PR is doing a successful job of attaining media coverage;
-   PR is evenly distributed among in-house, agency and hybrid combinations -- contrary to many perceptions, Silicon Valley PR is almost equally comprised of in-house, agency and/or combinations of both;

-   Prior working experience is the number one criteria for selecting a PR agency -- If an agency was used, management was asked what was the primary selection criteria. The top reason given was prior personal experience;
-   ROI of PR is seen as a being satisfactory or very satisfactory -- nearly 90-percent of respondents were either satisfied or very satisfied with their PR return on investment.

McKie concludes, Unfortunately, this survey confirms our worst fears that 2003 looks to be much like 2002. However, there is encouraging news that PR professionals are working more efficiently with smaller budgets and continue to demonstrate substantial return on investment."

Methodology
Throughout August and September of 2002, McKie/Headstrom conducted an anonymous e-mail survey that randomly sampled 624 public and privately held technology companies throughout Santa Clara, San Mateo and San Francisco counties. The survey questions were e-mailed to the PR Manager, Communications Director, or VP-level of Marketing from each company who could best comment on their PR spending and activities.

The First Annual Silicon Valley -- State of the PR Industry Report is available for free. Send requests by e-mail to: info@mhpr.com.

About McKie/Headstrom PR
Forged by passion, performance and persistence, McKie/Headstrom PR (www.mhpr.com), provides award-winning, full-service public relations and strategic communications services exclusively to technology companies. Founded in 1998 and recognized by PR Week magazine as a U.S. Top 10 Climber," the agencys expertise includes: embedded and component technologies, telephony, networking, enterprise systems, security, wireless, and home/consumer technologies.
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