MASSACHUSETTS BUSINESSES SHOW OPTIMISM FOR 2003

Jan 2, 2003, Boston, MA: While 2002 was cloudy for many, better times appear to be on the horizon. Mid-sized businesses are expecting a much more positive business climate for 2003 according to a study by the research arm of management consultant Kensingtonhouse Ltd. The study, conducted in the late fourth quarter of 2002, polled over 1000 CEOs of local and regional companies in the northeast.

BUSINESSES EXPECT GROWTH
Fully 60% of the executives interviewed indicated that they felt that 2003 would be a better year for their businesses than 2002, with only 8% projecting a worse year. Just over two out of three (70%) of the respondents projected sales growth over 2002 with a respectable 12% projecting significant sales increases of over 10%. Only 7% of the companies said that they expected a decrease in sales compared with 2002.

EMPLOYMENT SEEN STABILIZING & GROWING
Supporting the growing sales projections, a surprising one out of three companies indicated that they would be hiring in 2003, with 60 % saying that they expected employment levels to remain stable. Only 6% are looking at further cuts in the workforce.

CAPITAL EXPENDITURES COMING BACK
Plans for investing in plant and equipment are also showing signs of improvement, Just over 1 out of 5 CEO's indicated plans to finance new capital equipment in 2003, with 29% indicating a need for real estate financing.

CPA's STILL #1 FOR ADVICE
Despite all of the negative publicity surrounding Enron and other high profile companies, the accounting profession remains the leading source of business advice. 93% of the executives indicated that the issues and problems recently in the news would have little or no effect on their businesses or their choice of accounting firm. Only 5% indicated that they were considering changing CPA's and 2% said that they were rethinking the kinds of services used.