BETA RESEARCH CORPORATION
SYOSSET, NEW YORK

Contact:
Jerome Kossoff
CEO, Beta Research Corporation
516-935-3800; E-mail: jerome@nybeta.com

FOR IMMEDIATE RELEASE
February 25, 2002

Concerned About Financial Security, Americans Spend Less Time Shopping, More Time Reading; Fear of Travel Diminishes

New York, February 25, 2002:
Almost half of Americans are concerned with their financial security, and 52% say that they have become more careful with their spending according to the February wave of Changing American Lives, the McPheters & Company/Beta Research tracking study initiated in the aftermath of the September 11th attacks. Not surprisingly this translates into bleak news for retailers. Among those surveyed, 29% say they are shopping less now than before the September attacks, vs. only 20% in January. Respondents also say they are spending less time at malls (26%), shopping less online (15%)and by mail (21%).

The discomfort people feel in regard to traveling - whether by plane, train, and subway - appears to be dissipating. The proportion of the population that says they are now more fearful of flying has declined from 37% to 31%, and only a quarter (down from a third in Wave November) say they will travel less than they would have otherwise. Whereas 36% said they would select different travel destinations as a result of this situation in the last quarter of 2001, in February less than a quarter (22%) said they would select different travel destinations. The percent of the population still avoiding trains and subways has declined from almost a third in November to only 18%. Those avoiding bridges and tunnels have declined from 21% to 13% of the population.

While there has been some moderation of the effects of September's events on the time consumers spend with TV, radio, and the Internet, in February the proportion of the population reporting that they spend more time reading newspapers and magazines increased in comparison to the month before. A third of adults say they are spending more time reading newspapers, and a fifth say they are spending more time reading magazines.

Changing American Lives is a joint venture of McPheters & Company, Inc. and Beta Research. McPheters & Company is a Manhattan-based consulting firm providing strategic planning and market research to the media community. Beta Research is a full-service research company headquartered in Syosset, NY.