NEW YORK, March 7, 2005 — Senior executives of large, U.S. multinational companies predict revenue growth for the next 12 months will continue to be strong, though slightly lower than in 2004. Executives expect big increases in new hiring and IT investments, and are more confident of their ability to deal with legislative and regulatory pressures, competition from overseas markets, decreasing profitability, and weak market demand.

According to PricewaterhouseCoopers Management Barometer survey:

• Senior executives expect 9.6% revenue growth, on average, for the next 12 months, below the 10.1% achieved in 2004.

• Almost half (49%) expect increased spending for information technology over the next 12 months, up sharply from 42% in the prior quarter and 40% a year ago.

• 57% expect to add new workers in the coming 12-months. An average of 2.4% net new hires is expected.

“After a year of double-digit revenue growth, executives at our largest companies believe prospects are good for continued expansion” said John O’Connor, vice-chairman of PricewaterhouseCoopers LLP. “The percentage of companies expecting to add new jobs is the highest since 2001, and a strong indicator for sustained growth.”

Spotlight on Hiring

Fifty-seven percent of surveyed companies plan to add to their workforce over the next 12 months, while only 11% expect a net reduction, and 32% foresee no change. More technology companies, 62%, expect to add workers than non-tech businesses, 55%, although non-tech companies plan a greater average increase to their workforce.

Companies planning new hiring expect to grow revenues at a 10.8% rate over the next 12 months, compared to only 6.0% for other companies. Areas targeted for new hiring include: professionals and technicians, cited by 36% of those planning to add jobs, sales and marketing, 23%; white collar support, 21%; production workers, 19%; and skilled workers, 7%.

Barriers to Growth

Fewer surveyed executives than last year voiced concern about key barriers:

	4Q04	4Q03
Legislative/ Regulatory Pressures	33%	35%
Competition from Foreign Markets	30%	38%
Decreasing Profitability	26%	28%
Lack of Demand	25%	34%
Capital Constraints	14%	21%
Taxation Policies	12%	18%

Twenty-six percent noted concern about oil/energy prices. Areas of greater concern included:

Lack of Qualified Workers	25%	17%
Monetary Exchange Rate	24%	16%
Pressure for Increased Wages	23%	19%

“Business leaders appear more confident now about dealing with issues like regulatory compliance and competition from overseas markets,” said O’Connor. “But fluctuating energy prices are emerging as a concern for U.S. businesses and bear careful monitoring.”

PricewaterhouseCoopers’ “Management Barometer” is an established quarterly survey in the U.S. These surveys are developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc.

PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services for public and private clients. More than 120,000 people in 144 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders. “PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

Direct questions about Management Barometer to Pete Collins, survey director and publisher, at 646-471-4496 or e-mail to: pete.collins@us.pwc.com.

For more information about Barometer surveys, including recent economic trend data and topical issues, visit www.barometersurveys.com.