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Q3 Manufacturing Industry SBRB Report: Manufacturing Industry Expresses Heightened Concern About Overall Business Confidence Next 12 Months

NORTHFIELD, Ill. (Business Wire EON) October 12, 2007 -- The Manufacturing Industry Small Business Confidence Index (SBCI) declined to 38.33 or nearly two points from the 40.3 that was reported during the second quarter of 2007 according to the poll co-sponsored by International Profit Associates (IPA).

The current manufacturing industry SBCI is lower than the SBCI of 43 reported for all U.S. small businesses.

The lower Manufacturing Industry SBCI resulted largely from the change in revenue predictions. The poll tabulations showed that 45% are expecting revenues to increase during the next 12 months which is a seven point decline from the previous quarter. There was virtually little change in attitudes about the direction of the general economy or for hiring plans.

"Manufacturing companies are approaching the next year with tremendous caution based on the results of the poll which showed a sharp drop in confidence about their business prospects. They understand the seriousness of a weakening economy and are more apt than several other of the industries tracked by the SBRB to feel the impact much deeper," said Gregg M. Steinberg, President of International Profit Associates.

More than 800 small business owners participated in the nationwide poll. The universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly.

The Small Business Research Board ascertains and reports the opinions of small business owners and managers on a wide variety of topics related to their own businesses as well as national and international issues that may impact their operations. The SBRB conducts these studies for the benefit of small business owners and managers. The SBRB also provides opportunities for third parties to gain real time insight into the attitudes of small businesses nationwide through the independently conducted research.

The latest information about the Small Business Research Board can be found at www.ipasbrb.com.

International Profit Associates, Inc. (IPA) is the largest privately-held provider of management consulting services to small and medium-size businesses in North America. IPA and its more than 1,800 professionals offer a wide range of proven and innovative methodologies to help businesses grow and prosper regardless of the economic cycle. IPA either provides directly or through its affiliated companies a comprehensive array of business advisory services, tax and estate planning services or merger, acquisition and other financial advisory services in the United States and Canada. More information about IPA can be found at www.ipa-iba.com.

                    ALL         Manufacturing

                     US

Q3 2007              43             38.33

(Current)

Q2 2007              46              40.3

----------------------------------------------------------------------

Economy

Improving

Q3 2007              37               36

(Current)

Q2 2007              43               36

----------------------------------------------------------------------

Revenues

To Increase

Q3 2007              53               45

(Current)

Q2 2007              58               52

----------------------------------------------------------------------

Hiring

To Increase

Q3 2007              39               34

(Current)

Q2 2007              37               33

-- Outlook for the general economy the next twelve months

          36% Better

          29% Worse

          35% No Change

-- Revenue expectations the next twelve months

          33% Increase of 10% or more

          12% Increase of less than 10%

          40% Will be about the same

           7% Decrease of less than 10%

           8% Decrease of 10% or more

-- Expect to hire new employees during next twelve months

          34% Increase hiring

          10% Decrease workforce

          47% Remain the same

          10% Unsure

(a) numbers may not equal 100 as a result of rounding

Copyright 2007 Small Business Research Board (SBRB)

For more information about this poll, results of previous studies or other matters related to the SBRB, please contact Raymond D. Minkus, (847) 441-4192.

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