Released on = May 11, 2006, 8:29 am

Press Release Author = Ewold de Bruijne, Brightmen and Coolwords

Industry = Management

Press Release Summary = From time to time the investment community is reminded by
market regulators that failing to comply will have serious consequences. In the past
months, it was the Dutch AFM's turn to cause a stir. Subsequently, the regulatory
body issued new guidelines and has organised seminars to educate top-ranking
corporate executives on the rules of conduct.

Press Release Body = The overriding impression one gets from talking to people and
from reading the deluge of news articles, feature stories, and advisory newsletters
is that greater caution should be observed. All of a sudden, discussions flare up
about what exactly is "price sensitive" information, or even "what exactly is a
press release?" (see the Q&A section of the AFM web site). Some CEO's are refraining
from conducting press conferences, or even answering any questions from journalists
at all. Many are wondering now how to handle conversations with individual analysts
and investors and about the risks involved in continuing with these "one-on-ones".
It is as if a fundamental change in market dynamics has presented itself out of the
blue.

Brace for impact

It is generally believed that this kind of action on the part of the market
regulator will not remain without consequence. "The real impact [of the regulator's
new guidelines for fair disclosure] will be on stock analysts (.) They will have a
lot more trouble coming up with their so-called numbers - the estimates of quarterly
earnings for the companies that they research for brokerage houses. Since the stock
market now seems to revolve around whether or not companies' results match or beat
those numbers, the whole short-term market dynamic could change." This is
paraphrased from an article in the International Herald Tribune, published on 19th
August 2000, following the adoption by the US Congress of the Securities and
Exchange Commission's Regulation FD. The whole short-term market dynamic could have
changed indeed. But has it?

Monteverdi knew it

What fascinates me about getting older and more experienced, is that I realise that
my appreciation is growing for works of art, such as pieces of classical music. In
some peculiar way they sometimes seem to have direct bearing on my professional
activities. And at this point in time I can't suppress thinking of Claudio
Monteverdi's Vespers of the Blessed Virgin. "(.) sicut erat in principio, et nunc et
semper, et in saecula saeculorum. (.)" As it was in the beginning, is now, and ever
shall be, world without end. The truth is, the same fundamental principles still
apply.

One of the core concepts in investor relations, is that corporate communications
should enable investors to make a realistic assessment of a company's financial
position and operating performance. A continuous process, to which detailed rules
and regulations apply, in order to assure a level playing field: Fair Disclosure.
The code of conduct has not changed, really, although something important did
change.

Mastering the art

In the past ten years, the IR-function has progressed to become a genuine
profession. Based on formal training they received, the years of experience they
accumulated, or both, people involved in investor relations nowadays, are to be
regarded as professionals. We have more knowledge at our disposal than ever before,
and never has it been easier to tap from intelligent sources. If one thing can be
learned from all this, it is that it is very easy to describe the character and
behaviour of actors in the investment community. but at the same time, it remains
highly unpredictable how they will behave the next time. Maybe because it is
impossible to factor in all the variables. Maybe because, ultimately, communication
is not an exact science, but an art.

Let the watchdog bark

As in music, martial arts, and language studies, a theoretical framework does exist
in IR and it does serve a purpose. But at the end of the day excellence in dealing
with these things can only be achieved through practise. And it does matter which
sparring partner, coach, or mentor one chooses to work with. In fact, the choice of
a professional partner is often believed to be a key success factor in music,
sports, etc. Along with, of course, the practitioner's talent and its commitment to
the endeavour. And this holds true in IR as well. Therefore, more active supervision
by the market regulators should never be a reason to panic.

Serious practise

Most in-house IR departments of Dutch-based stock-listed companies have achieved a
fairly high level of professionalism, and most CEO's and CFO's have a good practical
knowledge and understanding of investor relations and corporate communications. The
particularly communications savvy companies have long discovered the benefits of
working with external communications consultants: the refreshing outsider's
perspective, their first-hand experience in assisting other companies dealing with
similar situations, above average writing skills, and direct access to opinion
leaders, to name a few. But above all, the external consultant is a professional
sparring partner whose sole purpose in life is to make sure you're always in shape
when it matters most. Achieving excellence is almost always a matter of effective
teamwork. Playing by the rules is not an effort, it's a precondition. Achieving and
maintaining an excellent performance in investor communications requires continuous,
serious practise. Hiring a consultant is not a luxury. It is a very sensible thing
to do.


About the author: Ewold de Bruijne (born 1967 in The Hague, The Netherlands) is a
financial communications consultant with more than fifteen years of experience in
the trade. He started his career in financial PR with AEGON, one of the world's
largest stock-listed independent life insurance companies, in 1991. After having
worked as an IR consultant, Financial Communications Officer, and Manager of
Corporate Communications, he started his own business - Brightmen and Coolwords - in
June 2005.


Web Site = http://www.brightmenandcoolwords.com

Contact Details = Ewold de Bruijne
Managing Director
Brightmen an Coolwords
Straat ter Leede 11
2361 CG Warmond
The Netherlands

+31 71 301 91 29