News Releases

• CEOs to give NAFTA region, specifically U.S. , greatest focus in 2007
• People viewed as the most vital asset of a company
• Corporate governance costs seen as a hindrance to growth
• Reputation as the newest subject in the survey

NEW YORK , August 14, 2006 –The NYSE Group, Inc. today released its 2^nd annual CEO Report  presenting the views of more than 200 CEOs from corporations in 21 countries.  The base of companies participating in the report represent more than 50 industries and total $1.7 trillion in combined global market capitalization.  In CEO Report 2007 , these corporate leaders reflect on the importance of people as main revenue drivers, underscore the increased focus on U.S. markets, and discuss the current scope of corporate governance rules.  The study was conducted independently by the market research and consulting firm Opinion Research Corporation, on behalf of NYSE Group, Inc. 

  “This survey provides timely and unique insight into the minds of global chief executives,” said Noreen Culhane, Executive Vice President of the NYSE Group.   “Their informed views on the challenges and opportunities facing business leaders today and more importantly their expectations for tomorrow’s business climate makes this instructive reading.”

Valuing People, Planning for Growth
Eight out of ten NYSE CEOs agree that operational efficiency, driven by employees, will have the greatest impact on internal profitability in 2007; 75% view this as the most vital asset of a company, and half of all CEOs surveyed will increase their employee education and retention programs. E*Trade Financial (NYSE:  ET) CEO Mitch Caplan says, "I want the people who join E*Trade Financial to know that they are working for a dynamic, creative company that values their input.  We make the investment in our people because they are the core of what we do."

U.S. Markets and Globalization
  More than 75% of all CEOs cite NAFTA as an area they will focus on throughout 2007, with many (66%) specifically concentrating on the U.S. Almost all CEOs surveyed (95%) say the U.S. economy is an important external growth factor for their companies. However participating CEOs do not neglect global markets, drawing attention to the BRIC region (Brazil , Russia , India and China ) in particular.  Fifty-seven percent describe emerging markets as an opportunity to expand sales and marketing activities.

Governance and Compliance
CEOs raised concerns over governance rules and compliance costs, with almost all (97%) raising the issue of increased compliance expenditures. One-third stated they spend at least twice as much as in 2003 to comply with regulatory requirements; 40% suggest higher costs resulted in delays and/or cancellations in expansion, 64% state that strategic planning has been affected, and more than half say that infrastructure has suffered. Almost nine out of ten CEOs spend more time on regulatory issues, and more than 25% spend less time on daily management.

Although only 6% of CEOs say they believe investors are better served, many saw a positive outcome of SOX and NYSE governance rules: 57% state they had a positive relationship with their boards, and 53% say that board members are now an excellent source of advice and insight. “Today’s directors are committed and hardworking – They want to be part of the team. And that makes them much more empowered to make a contribution” explains Richard Parsons, Chairman and CEO of Time Warner Inc. (NYSE: TWX).

Role of the CEO
The role of the CEOs has become less attractive in recent years. Nearly 100% state their jobs put them at greater personal legal risks than three years earlier. With 96% reporting their jobs as more time consuming, two thirds of CEOs find that running the show is simply less fun. 

Reputation Management
A new aspect of this year’s survey was the response to the importance of managing a company's reputation, with 16% of CEO’s reporting that they could do more to protect this valuable intangible asset. The most common ways to monitor reputation include information discussions with relevant parties, followed by discussions with or surveys of employees. 

Media Opportunities:  Based on availability of NYSE executives, Opinion Research Corporation Jeff Resnick and participating CEOs will speak on the survey’s findings.

Click here for the NYSE CEO Report 2007 .

Background:
In 2006, Time Inc. Content Solutions commissioned Opinion Research Corporation, an independent global strategy and market research and consulting organization, to conduct on behalf of NYSE Group Inc. the NYSE CEO Survey 2007, the second annual survey of CEOs of NYSE-listed companies.  A questionnaire was administered via the Internet, telephone and mail between February and April 2006, generating 205 responses (a 10% response rate) from leaders in more than 20 countries and 50 industries.

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About NYSE Group, Inc.
NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange).  NYSE Group is a leading provider of securities listing, trading and market data products and services. The NYSE is the world’s largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies’ common stock and other securities. On June 30, 2006 , our listed operating companies represent a total global market capitalization of over $ 22.6 trillion. In the second quarter 2006, on an average trading day, almost 1.8 billion shares, valued at over $68.5 billion, were traded on the NYSE.

NYSE Arca operates the first open, all-electronic stock exchange in the United States and has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca is also an exchange for trading equity options. NYSE Arca’s trading platform provides customers with fast electronic execution and open, direct and anonymous market access.

NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.

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Cautionary Note Regarding Forward-Looking Statements
Certain statements in this article may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on NYSE Group’s current expectations and involve risks and uncertainties that could cause NYSE Group’s actual results to differ materially from those set forth in the statements. There can be no assurance that such expectations will prove to be correct. Actual results may differ materially from those expressed or implied in the forward-looking statements. Factors that could cause NYSE Group’s results to differ materially from current expectations include, but are not limited to:  NYSE Group’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Group’s Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Group that the projections will prove to be correct. We undertake no obligation to release any revisions to any forward-looking statements.