10.14.2004 ET

(CSRwire) Portsmouth, NH - New European Union directives require the complete phase-out by 2006 of several toxic chemicals commonly used in the electronics industry. Citizens Advisers, a socially responsible investment manager, initiated a study earlier this year of electronic components manufacturers to evaluate the state of their preparedness to address the new rules. Today, Citizens Advisers announced the results of its survey.

Conducted by analysts Vesela Veleva, Sc.D. and Suresh Sethi, the Citizens study found the industry is largely aware of the novel environmental regulations. However, there is mixed progress to date among the companies in the actions they have taken to eliminate the hazardous chemicals banned by the EU.

The complete study is published in the current issue of the journal Corporate Environmental Strategy. Don Smith, Editor-in-Chief commented, "With the July 1, 2006, deadline quickly approaching, it's essential for American electronics manufacturers to become aware, plan ahead and work now to meet the new global standards."

Citizens Advisers' Veleva observed, "There are short-term costs to becoming compliant with the new regulations, but the cost of inaction would be even greater. Proactive companies can use this as an opportunity to increase their market share; laggards will risk market exclusion."

Citizens surveyed twenty-six companies in the electronics components sector, all of which were held in its portfolios as of January 2004. Citizens supplemented this survey with background research on all twenty-six companies.

All of the companies that responded to the Citizens' survey were aware of the environmental regulations. The study found that 69% of the twenty-six companies were taking measures to redesign their products and phase-out restricted chemicals. Fewer companies (58%) claimed they will be ready to meet the July 1, 2006 deadline.

For further information about the Citizens study and to learn how to obtain your own copy, please visit www.citizensfunds.com/study.

About Citizens Advisers
Citizens Advisers has been a recognized leader in responsible investing since its founding in 1982. Using a unique proprietary research process, Citizens' mission is to generate superior returns by investing in companies that are fundamentally strong and demonstrate good corporate citizenship. Serving the needs of institutional and individual investors as well as financial intermediaries, Citizens offers domestic and global equity, fixed-income and money market products.

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