Results of 1991 - 2000 Baldrige Award Recipients 10-Year Common Stock Comparison

Methodology:

A hypothetical sum was invested in each of the 1991-2000, publicly-traded Baldrige Award recipient's common stock, in the year they applied for the Award. The investment was tracked from the first business day of the month following the announcement of the Award recipients, (or the date when they began public trading, if it is later) through December 3, 2001. $1,000 was invested in each whole company, and for subsidiaries the sum invested was $1,000 multiplied by the percent of the whole company's employee base the subunit represented at the time of its application. The same total dollar amount was invested in the Standard & Poor's (S&P) 500 on the same day. If a subunit was sold to another parent company, or if a company divested or merged, it was the subunit whose progress was followed, not the parent company's progress. The value of the original stock at the time of sale was determined and that dollar amount was reinvested in the new parent company.

Adjusting for stock splits, the value on December 3, 2001 was calculated. Information is reported two ways: all publicly-traded Award recipients and only whole company Baldrige Award recipients. The 21 publicly-traded Award recipients, as a group, outperformed the S&P 500 by approximately 2.94 to 1, achieving a 322.78% return compared to a 109.68% return for the S&P 500. The group of three, publicly traded, whole company Award recipients outperformed the S&P 500 by about 4.45 to 1, achieving a 512.24% return compared to a 115.17% return for the S&P 500. A summary of the results follows.

1991 - 2000 Publicly Traded Award Recipients

1991 - 2000 Publicly Traded Whole Company Award Recipients

Results of 1991-2000 Baldrige Site Visited Applicants 10-Year Common Stock Comparison

Methodology:

A hypothetical sum was invested in each 1991-2000 publicly-traded, site visited applicant's common stock in the year they applied for the Award or in the year they became public. The investment was tracked from the first business day of the month following the announcement of the Baldrige Award recipients (or the date when they began public trading, if it is later) through December 3, 2001. $1,000 was invested in each whole site visited company. For subsidiaries, the sum invested was $1,000 multiplied by the percent of the parent company's employee base the subunit represented at the time they received a site visit or at the time they became public as a result of a merger or acquisition by a new parent. The same total dollar amount was invested in the S&P 500 on the same day.

Adjusting for stock splits, the value on December 3, 2001 was calculated. Information is reported two ways: all publicly-traded site visited applicants and only whole company site visited applicants. (Note: a company may be included multiple times if they received more than one site visit. Site visited applicants include those receiving an Award.)

The 61 publicly-traded site visited applicants, as a group, outperformed the S&P 500 by approximately 1.15 to 1 achieving a 125.13% return compared to a 108.52% return for the S&P 500. The group of nine whole company site visited applicants outperformed the S&P 500 by approximately 1.48 to 1, achieving a 167.40% return compared to a 113.28% return for the S&P 500. Names of Baldrige applicants are kept confidential. A summary of the results follows.

1991 - 2000 Publicly Traded Site Visited Award Applicants

1991 - 2000 Publicly Traded Whole Company Site Visited Award Applicants

AWARD RECIPIENTS INCLUDED IN THE STOCK STUDY
(Those not included were not publicly held at the time of the study)

Whole Company Award Recipients
Eastman Chemical Company (1993)
Solectron Corporation (1991 and 1997)

Subunit Award Recipients (with parent company)
(The sum invested was $1000 x the % of the parent company's employee base that the subunit represented at the time the subunit applied.)*

3M Dental Products Division (1997)
3M

Armstrong Building Products Operations (1995)
Armstrong World Industries, Inc.

AT&T Consumer Communication Services (1994)
AT&T Business

AT&T Network Systems - Transmission Systems Business Unit (1992)
Lucent Technologies, Inc., Network Systems

AT&T Universal Card Services (1992)
Citigroup, Inc.

Boeing Airlift and Tanker Programs (1998)
The Boeing Company

Corning Telecommunications Products Division (1995)
Corning Incorporated

Dana Commercial Credit Corporation (1996)
Dana Corporation

Dana Spicer Driveshaft Division (2000)
Dana Corporation

GTE Directories Corporation (1994)
Verizon

Merrill Lynch Credit Corporation (1997)
Merrill Lynch & Co.

Solar Turbines Incorporated (1998)
Caterpillar Inc.

STMicroelectronics, Inc. - Region Americas (1999)
STMicroelectronics, Inc.

Texas Instruments Incorporated - Defense Systems & Electronics Group (1992)
Raytheon Company

The Ritz Carlton Hotel Company (1992, first included in 1997 study, and 1999)
Marriott International
*(Ritz Carlton became public when Marriott International acquired it. The sum invested was based on the sum of Marriott's employee base.)

Xerox Business Services (1997)
Xerox Corporation

Zytec Corporation (1991)
Artesyn Technologies
*(As of 12/29/97 Zytec Corporation merged with Computer Products and formed Artesyn Technologies. Dollars invested in Zytec were carried forward into Atesyn with a 1.33 split multiplier.)