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Security Threats Not Impacting Corporate Planning in a Major Way HONOLULU (February 10, 2003) — The majority of leaders of the Pacific Basin Economic Council (PBEC) say their corporate strategy is factoring in threats of terrorism or military conflict “in a minor way.” In a survey taken of chairmen of PBEC’s 20 Asia-Pacific member economies, most said the way they do business isn’t being significantly revised because of potential war with Iraq and North Korea, and the ongoing threat of terrorism. “One of our members said that strategies and the implications of conflict have already been reviewed,” said PBEC President Dalton Tanonaka. “He said that if we bow to terrorist pressures, we shall have lost the most important of wars.” Most of the PBEC survey respondents also reported that investment activities have only been scaled back “in a minor way” because of global concerns. But half of them said they are “somewhat pessimistic” that security threats will be sufficiently contained so as not to affect business plans. “That means we are looking to the immediate future with much caution and concern,” said S.R. Cho, PBEC Chairman. PBEC is an international business association founded in 1967 with members from Pacific Rim economies from North America, South America, Asia and Australasia. Its International Secretariat is located in Honolulu, Hawaii. PBEC is chaired by S.R. Cho, the chairman of South Korea’s Hyosung Group. HSBC Chairman David Eldon is PBEC vice chair, and John Wadsworth of Morgan Stanley is treasurer. The survey questions and results: How are regional and global security concerns causing your company to scale back investment activities and plans? 1) Significantly - 0% 2) Moderately - 40% 3) In a minor way - 60% 4) Not at all - 0% Overall, how much of your corporate strategy is now factoring in threats of terrorism or military conflict? 1) Significantly - 20% 2) Moderately - 20% 3) In a minor way - 60% 4) Not at all - 0% Are you optimistic or pessimistic that security threats will be contained sufficiently so as not to affect business plans? 1) Optimistic - 0% 2) Somewhat optimistic - 50% 3) Somewhat pessimistic - 50% 4) Pessimistic - 0% About PBEC: PBEC is an international association of senior business leaders representing nearly 1,000 major corporations in 20 economies around the Pacific, which together account for more than US $4 trillion in global sales and employ more than 10 million people. PBEC is a forum through which business leaders create new business relationships, exchange views with government officials, and produce recommendations on key business issues. The unprecedented scope of PBEC’s membership constitutes a broad and balanced reservoir of international business knowledge, unmatched in credibility and expertise. PBEC is the independent voice of business in the Pacific. For more information, contact: Ryan Kawailani Ozawa Manager, IT & Communications PBEC International Secretariat 900 Fort Street, Suite 1080 Honolulu, HI 96813 Tel.: 808-521-9044 Fax: 808-521-8530 E-Mail: ryan@pbec.org