For more information contact:                               David Schilling (212) 870-2928
                                                                                    Vidette Bullock Mixon (847) 866-5293

Tuesday, January 23, 2001 - A coalition of thirty-eight investors from the US and Canada with over three million shares is challenging Wal-Mart to eliminate sweatshop conditions in factories that produce its products. Religious groups, pension funds, university and socially responsible investment funds are sponsoring a shareholder resolution calling on Wal-Mart to use independent monitors for its code of conduct in factories for vendors. The resolution is coordinated by the Interfaith Center on Corporate Responsibility (ICCR).

"We were disturbed that Business Week's investigation of a supplier plant producing for Wal-Mart in Zhongshan, China (October 2, 2000) found serious labor abuses that Wal-Mart's own monitoring missed," states Vidette Bullock Mixon of the United Methodist Church's General Board of Pension and Health Benefits, a Wal-Mart shareholder. "Wal-Mart says it has upgraded its monitoring policies and procedures, but major abuses, like the beating of workers, were not detected by the company's monitors."

Last fall representatives of the religious investors negotiated with Wal-Mart to establish an independent monitoring pilot project involving local non-governmental organizations in a single plant in Central America where Wal-Mart products are manufactured. The company ultimately refused to approve the plan claiming its own monitoring efforts are improving.

"We are very disappointed that Wal-Mart did not step up to the challenge of working with respected local religious and human rights monitors who have the trust of workers and know the local situation," said Rev. David Schilling, director of ICCR's Global Corporate Accountability Program. "Other companies have embraced independent monitoring because it provides an important local perspective that is more credible to consumers and investors than the monitoring done by companies and audit firms." Rev. Schilling concluded: "We hope the top leadership of Wal-Mart will reconsider its decision and make a good faith effort to eliminate abusive labor conditions. This can only be effectively done in partnership with credible non-governmental groups."

The Interfaith Center on Corporate Responsibility is aa coalition of nearly 300 faith-based institutional investors representing over $100 billion in invested capital, including denominations, religious communities, pension funds, diocese and health care corporations. The shareholder resolution challenges the largest company in the world to implement independent monitoring pilot programs and to make sure its suppliers pay a wage that enables workers to meet their basic human needs. Wal-Mart shareholders will vote on the resolution at the company's annual meeting in June 2001.