Released on = June 5, 2006, 11:43 pm

Press Release Author = Scott Naxton

Industry = Financial

Press Release Summary = U.S. consumer companies are outsourcing heavily due to
rising energy cost, lower marginal profit, and sluggish demand.

Press Release Body = According to PriceWaterhouseCoopers, Retail & Consumer
Industry, more than two-third U.S. consumer product companies are outsourcing to
fast developing nations to cut the costs. This is due to rising manufacturing cost,
particularly energy & fuel cost and other overheads. Industry also anticipate
sluggish growth in demand in coming months.

First quarter survey of consumer product manufacturing companies in U.S. shows that
53% said yes for the growth in consumer product industries whereas 67% found
pessimistic. Revenue growth is expected of 6.2% over the next 12 months, far below
than cross-industries growth target of 8.6%

Survey further reports that legislative/regulatory pressures would be major
impediment in the growing of consumer product industries. Interest rates are also
rising by 30% whereas demand is expected to be at 25%

Rising energy & fuel costs are forcing consumer products industries to outsource
jobs to other fast developing countries such as India, Philippines, Pakistan and
other Asian countries where nations are improving their infrastructure, labor cost
is low. U.S. companies will be benefited from such outsourcing not only by reducing
the costs but also bringing quality products at lower costs to its consumers.

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