ESOP Companies Outperform Stock Market in 2008

In Survey, 88.5% of ESOP Association Members Report Better Performance Than
Stock Market

WASHINGTON, Aug. 17 /PRNewswire-USNewswire/ -- Results from the Employee
Ownership Foundation's 18th Annual ESOP Economic Performance Survey show that
88.5% of ESOP companies outperformed the stock market in 2008. The results
indicate respondents' companies outperformed three major stock indices in 2008
including the Dow Jones Industrial Average, the NASDAQ Composite, and the S&P
500.

As has been the case in all 18 years the survey has been conducted, a very
large majority, 88.2% of survey respondents reported that creating employee
ownership through an ESOP (employee stock ownership plan) was a "good business
decision that has helped the company." In addition, 65% indicated the ESOP
positively affected the overall productivity of the employees. In terms of
profitability, the number is down from 2008 with 50.4% of respondents stating
profitability increased in 2008. In terms of revenue, 57.9% reported an
increase over the prior year. A new question was added to the survey in 2009
asking ESOP companies to report whether profits/revenue were down in the final
quarter compared to the first quarter of the year. Approximately 63% reported
that profits/revenue were down significantly/moderately, with 12.2% reporting
the last quarter remained the same as the first. In addition, 13.3% reported
that revenue improved in the last quarter and 10.2% reported that profit
improved in the same time frame.

"In a turbulent year, these results speak wonders for the power of employee
ownership," said J. Michael Keeling, president of the Employee Ownership
Foundation. "On the other hand, this survey and most news reports show that
American companies are hurting, profits are down, and layoffs are taking place
across the country. Objective academic research evidences that employee owned
companies are higher performing, have high employee retention rates, and have
employees that are more motivated and productive. Our national leaders need
to promote policies to encourage more companies to become employee owned
through an ESOP to create a more fair and equitable society."

In addition, the survey asked companies to indicate their performance in 2008
relative to 2007:

-- 50.9% indicated a better performance; 39.7% indicated a worse
performance; 9.4% indicated a nearly identical performance as the
previous year
-- 57.9% indicated revenue increased; 42.1% indicated revenue did not
increase
-- 50.4% indicated profitability did increase; 49.6% indicated that
profitability did not increase
-- 65% of survey respondents indicated the ESOP improved the overall
productivity of the company's employees

-- 51.3% of companies that responded indicated they have created an
employee participation program since establishing the ESOP

The 2009 Economic Performance Survey was distributed to The ESOP Association's
over 1,400 members in May 2009. The results are based on 429 responses, a 31%
response rate.

For additional information about the survey, please visit the Employee
Ownership Foundation's website at www.employeeownershipfoundation.org or The
ESOP Association's website at www.esopassociation.org.

The Employee Ownership Foundation is The ESOP Association's affiliated 501
(c)(3) organization dedicated to promoting employee ownership.

Founded in 1978, The ESOP Association represents over 1,400 ESOP companies who
believe that employee ownership will improve American competitiveness,
increase productivity through greater employee participation and strengthen
our free enterprise economy.

SOURCE Employee Ownership Foundation

Amy Gwiazdowski of Employee Ownership Foundation, +1-202-293-2971,
amy@esopassociation.org