Decline in the Industry Reflective of the General Health of High Tech and Silicon Valley NACCB-Norcal Press Release, July 9, 2003: The Northern California Chapter of NACCB (National Association of Computer Consultant Businesses) which represents the Information Technology portion of the staffing industry, said that the decline in the industry has been reflective of the general health of high tech and Silicon Valley in particular. A study of the public companies doing IT staffing indicates that revenues started to decline in mid 1999. From that point to the first quarter of 2003, the typical IT staffing company sales fell by some 45% with an average drop of about 3% per quarter. This rate of decline has continued during last quarter of 2002 and the first quarter of 2003. This drop in sales has effected profitability as measured by returns on sales. The typical company's profits fell from approx. 3% in 1999, to under then 1% in 2000, to -2% in 2001, to -7% in 2002. Due to continued belt tightening and economies, the first quarter of 2003 has showed a modest return to profitability, of under 1%. The NACCB helps its member companies navigate through these economic times, affords for and interchange of ideas and provides a code of ethics by which to do business. For further information call Jane Hynes, Membership Chair, at (800) 823-1470. (The above statistics are courtesy of Michael Neidle, President of Optimal Management, a management consulting company, acting as mentors to staffing company owners (650) 655-2190, www.optimal-mgt.com.)