Innovest Releases Global Computers & Peripherals Report

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Innovest Releases Global Computers & Peripherals Report

Ratings leaders outperform laggards by 19% over last 3 years

Report Also Finds ROE, Operating Profit, Intangible Value Strongly

Correlated With Sustainability Leadership

NEW YORK, NEW YORK, Sep. 3 -/E-Wire/-- Innovest Strategic Value Advisors Inc., the global leader in analyzing non-traditional sources of investment risk, has released its most recent report on the Global Computers & Peripherals Industry. The report assesses a wide spectrum of key industry trends and market activity associated with social, environmental, and corporate governance issues and their impacts on corporate bottom line and share price.

As with the majority of the more than 50 industry sectors examined by Innovest, "sustainability" leaders in the computers & peripherals sector substantially out-performed their industry competitors over a three-year period. Companies with above-average Innovest Intangible Value Assessment(TM) ratings, including the three leaders, HP, IBM and Dell, outperformed companies with below-average ratings as a group by approximately 19% at the end of three years from April 2000 to June 2003. Top-performing stocks also posted superior results in other business performance and market valuation ratios, including:

Operating Profit Margin, leaders outperformed laggards by 4.3% versus 1.5% Return on Equity, 14.6% versus 3.6% Return on Assets, 3.6% versus 1.6% Total Return - 1 Year, 26.7% Total Return - 2 Year, 35.6%

While most players in the tech sector continue to languish in a soft global economy, leading firms have begun to address a host of intangible issues that are expected to define the sector's competitive landscape over the coming years. Chief among these issues are bridging the digital divide -- by providing digital technologies to underserved populations -- and a new global legislative trend to make producers financially responsible for the takeback and recycling of electronic products. Those firms who have received higher Innovest ratings are those best positioned to respond to these issues, with their investors poised to reap the benefits.

Driven by increasing global competition, leading companies are pursuing sustainability best practice in order to leverage new sources of value for stockholders. They are consciously developing innovative products that meet new regulatory and consumer demands, building valuable strategic partnerships with governments and global organizations, and increasing digital access in India, China, South America and other regions to foster future demand for digital technologies. The report identifies those companies that excel in several of these areas and are vigorously integrating these strategies into their business plans.

In total, 18 global competitors in the sector were analyzed. Companies from the U.S., Europe, and Japan were benchmarked based on their strategies to improve performance, reduce risk, and to develop new business opportunities. According to Devin Crago, the study's primary author, leading computer & peripheral companies are coming to see performance on sustainability issues as fundamental factors in determining long-term competitiveness and profitability. "Strategic capability is critical," said Crago. "With major issues on the horizon like European extended producer responsibility legislation, health & safety lawsuits and the digital divide it's apparent that firms implementing proactive strategies today will be better positioned to out-perform their competitors going forward."

Innovest Strategic Value Advisors is an internationally recognized, independent research firm specializing in non-traditional sources of investment risk and out performance, including companies' performance on governance, environmental, and social issues. Innovest's clients include leading institutional investors throughout the world. Founded in 1995 by Dr. Matthew Kiernan, Innovest has offices in New York, London, Paris and Toronto. The company is chaired by Jim Martin, former Chief Investment Officer for North America's largest pension fund, TIAA-CREF. For further information please visit the company's website at www.innovestgroup.com

Innovest Strategic Value Advisors Inc

http://www.innovestgroup.com

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