Walden Asset Management Announces Shareholder Advocacy Actions for 2003

CONTACT: Tim Smith, 617-726-7155 or Heidi Soumerai, 617-726-7233

February 10, 2003 Boston, Massachusetts- ICCR Member Walden Asset Management today announced their shareholder advocacy agenda for 2003, covering a wide range of issues and shareholder resolutions at over 25 companies. Walden filed or co-filed 28 resolutions on social, environmental, and corporate governance issues this year, and is a lead proponent involved in dialogue and negotiations with 17 of those companies.

"Walden's shareholder advocacy program demonstrates our commitment to our clients and the public to use the power of our voice as investors to urge corporations to adopt best practices in corporate governance and to act in a more environmentally and socially responsible manner," stated Timothy Smith, Walden's Senior Vice President and Director of Socially Responsive Investing. Walden manages approximately $1 billion in assets for clients with social and environmental concerns. "Leadership in social investing is no longer simply avoiding investments in companies conflicting with one's social values. This leadership is defined increasingly by leveraging our ownership through the effective use of shareholder advocacy and proxy voting. Exercising our influence as investors in this era of corporate scandals is not a choice but an obligation. Walden is making a difference in the marketplace and in corporate boardrooms," he said.

Walden's Shareholder Advocacy Program 2003 includes shareholder resolutions that were filed with the following companies and issues:

I. The Environment
· Recycling- Coca-Cola, Coca-Cola Enterprises, and PepsiCo
· Climate Change- Marsh & McLennan and Occidental Petroleum
· Mercury Pollution- SUPERVALU
II. Diversity and Discrimination Issues
· Comprehensive or Glass Ceiling Diversity Report- Illinois Tool Works, Merck
· Inclusive Non-Discrimination Policy- ALLTEL, Dover, Emerson Electric, ExxonMobil, Federal Express
III. Sweatshops / Human Rights Overseas
· Sweatshop/Vendor Standards- TJX, Wal-Mart
· Sustainability Reports- Yum! Brands
· International Human Rights- ExxonMobil, Unocal
· Child Labor- Federated Department Stores
IV Corporate Governance
· Eliminate Staggered Boards and Institute Annual Election of Directors- Avon, BJ's Wholesale, Gillette, McDonald's, Merck
· Executive Compensation- JPMorgan Chase
· Establish Communications between Investors and Independent Directors- Autodesk
III. Health
· Report on Health Pandemic (HIV/AIDS)- Colgate-Palmolive

"These resolutions send a message to management and become the basis for dialogue that leads to change. For example, in 2002 Walden withdrew nine resolutions when management pledged to disclose information or change policies or procedures," Tim Smith said.

Among the companies responding positively in 2002, J.C. Penney (Eckerd Drug Stores) and Kroger agreed to phase out the sale of mercury thermometers. Dialogue with both Bemis and FleetBoston Financial led to public disclosure commitments of detailed equal employment opportunity information. Affiliated Computer Services and Teleflex were prompted by Walden initiatives to amend their policies to explicitly bar discrimination based on sexual orientation.

2002 also saw relationships cultivated in the past bear fruition in firm commitments. PepsiCo agreed to follow Coca-Cola's recycling lead, by pledging to include 10% recycled content in its U.S. plastic soda and water bottles by 2005. Walden had filed resolutions in 2001 and 2002 at PepsiCo on this issue. Walden worked on this initiative with a number of socially responsive investment firms and the GrassRoots Recycling Network and Container Recycling Institute provided technical assistance.

Looking into 2003, Heidi Soumerai, Director of Social Research, remarked, "Some of the issues we are addressing are brand new for us. For instance, this is our first year co-leading an effort asking Federated Department Stores to insure, through independent monitoring, that their carpets are not manufactured with child labor. We are also working very actively on addressing the health pandemic in Africa. I'm very pleased that we've already seen some major progress on this issue."

The companies with which Walden has filed resolutions for 2003 include some new companies but also those at which Walden has been knocking at the door for years. Walden continues to actively address sweatshops and vendor standards at TJX and Wal-Mart, and ALLTEL is being approached on its non-discrimination policy for the third year.

"2003 has already seen several breakthroughs on a diverse set of issues" Ms. Soumerai said, "We can attribute these accomplishments in large part to being able to work in coalitions with other investors, and that provides us with the ability to approach the negotiation table as a unified force."

With Colgate-Palmolive's agreement to include a section on the HIV/AIDS pandemic in its 2003 global sustainability report, Walden withdrew its resolution. The report will detail Colgate-Palmolive's policy, in addition to some of its initiatives and programs in this area. The 2003 global sustainability report will be distributed to shareholders, and to others that request such information. Colgate Palmolive has also agreed to a continued dialogue with Walden on this very important issue. Ms. Soumerai commented, "We are pleased with this step forward, we hope that other companies will follow their example. It is of essence that companies address the devastating human and economic impact of the African health pandemic."

Walden also withdrew a resolution at SUPERVALU when it publicly confirmed that it had phased out sales of mercury at all retail and distribution companies. According to Walden's analysis nearly 90% of all pharmacy chain stores have now phased out sales of mercury thermometers.

Resolutions have also been withdrawn from Occidental, Illinois Tool Works, and Merck. Merck is also filing an amicus brief to the U. S. Supreme Court in support of the University of Michigan and its affirmative action program.

Walden Asset Management is the socially responsive investment division of United States Trust Company of Boston. Founded in 1975, Walden blends a disciplined investment style and investment performance with expertise in social screening and a commitment to using our leverage as investors to improve corporate social performance in the U.S. or abroad. Walden has an in-house team of 5 persons working on social research and shareholder advocacy.

"Walden provides clients with a very competitive record of investment performance along with our record of socially responsible investing. The year 2002 returns are an example of relatively strong financial performance blended with outstanding leadership in socially responsible investing," stated Ms. Soumerai.

For more information, check out Walden's website at http://www.waldenassetmgmt.com