Chief Executives of the Year Announced

Mr. Francisco Sánchez-Loaeza of Panamerican Beverages (Panamco) was elected winner of the Award presented to the chief executive of a company headquartered in one of the world's emerging economies whose vision and company performance have best shown the pattern that can be offered as a model to other emerging markets companies around the world. Mr. Jorma Ollila of Nokia will receive the Award presented to the chief executive of a company headquartered in the developed world whose expansion into emerging markets has best shown how these markets can contribute significantly to corporate revenues and profitability and has benefited the countries involved.

“Successful businesses today recognize both the potential value emerging markets can play in the growth of a company and the role they play within the dynamics of a world economy,” said Jacques Kemp, Chairman of the Regional Management Committee for ING Barings in Europe, the Middle East, and Africa. “Nokia has capitalized on the merging of technology and service to expand into these new markets and sets an excellent example for competitive multinational corporations.”

“The writing is on the wall: emerging markets companies are fueling world business and trade as never before,” said Richard Burns of International Media Partners. “What is truly remarkable about Panamco is the success it has enjoyed despite recent regional economic crises in its principal markets. They have expanded their business while maintaining shareholder value in what is a testament to Mr. Sánchez-Loaeza’s good business sense and entrepreneurial spirit.”

Founded in 1941, Panamco is the largest soft drink bottler in Latin America and the world’s largest Coca-Cola bottler outside of the United States, accounting for over 5% of the worldwide unit case sales volume of Coca-Cola soft drinks. The Company distributes all Coca-Cola soft drink products along with bottled water, beer and other beverages in its franchise territories in Mexico, Brazil, Colombia, Venezuela, Costa Rica and Nicaragua. As an anchor bottler of The Coca-Cola Company, Panamco shares common strategic goals with and enjoys the equity participation of The Coca-Cola Company.

In addition to the fact that Panamco operates in some of the world’s most promising markets, the Company’s astounding growth is attributable to its ability to integrate new acquisitions quickly and effectively. Under Mr. Sánchez-Loaeza’s leadership, Panamco has become a preferred consolidator of the Coca-Cola system and has successfully added three countries to its organization: Costa Rica in 1995, Venezuela in a landmark acquisition in 1997, and Nicaragua in 1997.

Equally important and impressive as Panamco’s financial performance are the Company’s social and environmental accomplishments, which have been particularly notable during Mr. Sánchez-Loaeza’s tenure as CEO. Panamco invests heavily in both training its employees and sponsoring housing, education and health programs for them and their families. Its commitment to the environment is illustrated by its production facilities, most notably in Brazil where its Jundiai plant has been awarded both ISO-14001 and ISO-9000 certificates.

The developed markets category winner, Nokia, is a leading international telecommunications company and is the world’s largest manufacturer of digital mobile phones. The company has grown in parallel with the fast growth of wireless technologies all over the world. Bypassing and completing fixed telecommunications, digital and cellular phone technology is also providing countries lacking a developed infrastructure with effective and modern telecommunication.

As one of the fastest growing telecommunications companies in the world today, much of Nokia’s growth can be attributed to its strength and presence in the world’s fastest growing economies, the emerging markets. Capturing the lead in these markets, Nokia has advanced on competition with innovative technologies such as the introduction of the first Asian language interface in mobile phones and with the erection of new production facilities in Brazil, Hungary and China over the past year alone.

Nokia’s recent successes can be traced back to 1992 when newly appointed president and chief executive officer Jorma Ollila began reengineering the company by implementing new policies divesting Nokia from its non-core operations. With only 15% of its business devoted to telecommunications in 1986, the sector now commands over 90% of Nokia’s energies. Refocusing efforts came about as Nokia’s management saw the opportunities in the liberalization of the telecommunications sector and the fast growth brought by it. By investing heavily in R&D (tripled since he took office) and focusing on global marketing, Mr. Ollila has led Nokia to the position it holds today.

A leader in Asia Pacific, Nokia established its first regional office in Singapore some 15 years ago, and in 1996 almost a quarter of Nokia net sales came from the region. Nokia currently has sales, customer service, production, and research and development operations in 25 countries in the region. Research cooperatives with universities such as the Beijing University of Post and Telecommunications and the Indian Institute of Science have helped Nokia increase its interaction with the fast growing Asian markets to develop products based on the needs of the clients there. In Latin America Nokia has a manufacturing site in Mexico and recently established a joint venture with a Brazilian partner. Altogether the emerging markets are of great importance to Nokia. This year the net sales in the emerging markets will exceed the total Nokia net sales in 1991.

In addition to its leading edge technologies, Nokia has also shown itself a leader in environmental activities. As one of the first companies to endorse the Business Charter for Sustainable Development published by the International Chamber of Commerce in 1991, Nokia has made significant commitments to eco-efficiency and in 1994 developed its own strong environmental policy.

A front runner in a cutting edge industry, Nokia, under the leadership of Jorma Ollila, provides an excellent example of a company in symbiosis with the emerging markets providing economic and social advances to both host countries and corporate directives.

This year’s winners succeed last year’s winners Eka Tjipta Widjaja, Chairman of Sinar Mas, and John Browne, CEO of British Petroleum. Other past winners include Stan Shih, Chairman and CEO of The Acer Group, and Percy Barnevik, former President and CEO of ABB Asea Brown Boveri.

Nominations for the 1997 Emerging Markets CEO of the Year Awards were received for chief executives based in more than 40 countries, and whose businesses ranged from publishing to infrastructure, and from financial services to pharmaceuticals. Nominations came as a result of advertising in the international press, letters to more than 1,000 chief executives worldwide to recommend their peers, and letters to the national chambers of commerce and Ministries of Trade and Industry in more than 70 countries. Nominations closed on May 30.

Nominated chief executives and background materials on their companies were then reviewed by an independent Selection Committee. The 1997 Selection Committee comprised: Percy Barnevik, Chairman of Investor AB and ABB Asea Brown Boveri; John Browne, Group Chief Executive of British Petroleum; Don Christiansen, International Executive Partner at KPMG International; L. Enrique Garcia, President and Chief Executive Officer of Corporation Andina de Fomento; John Kay, Director of the School of Management Studies at the University of Oxford; Jacques Kemp, Chairman of the Regional Management Committee for ING Barings in Europe, the Middle East, and Africa; Grzegorz W. Kolodko, Former First Deputy Premier and Minister of Finance, Poland; Mark Mobius, President, Emerging Markets, Templeton International; Rubens Ricupero, Secretary General of the United Nations Conference on Trade and Development; and Eka Tjipta Widjaja, Chairman of Sinar Mas Group.

For further information, please contact:

Lynn Russo, Senior Director of Business Development
International Media Partners
611 Broadway
New York, NY 10012
USA

Telephone: 212-979-3721
Telefax: 212-995-8827
Email: lrusso1@san.rr.com