THE DAVE THOMAS FOUNDATION A D V O C AT E S PRO-ADOPTION CORPORATE POLICIES.
led to finding adoptive homes for 3,000 children in 2002. The foundation adds that it distributes to companies tool kits of literature and CDs that advocate such corporate policies as paid leave and reimbursement of adoption expenses to new adoptive parents. Rita Soronen, the foundations executive director, says approximately 65 percent of Fortune 500 companies offer such benefits. Less than one half of one percent of employees actually adopt, she says, so benefits are relatively cost-effective. Soronen cites MBNA Corp. (KRB) as having an exemplary program. MBNA says it offers as much as $20,000 in reimbursed adoption expenses, six weeks leave at 100 percent pay for the adoptive parent and a $2,500 bond that matures on the childs 18th birthday. We like to give the best possible benefits to all the people who work here, says Brian Dalphon, senior executive vice president for MBNA investor relations. Its the right thing to do. JSD
FROM TOP: MEL NUDELMAN; COURTESY WENDYS
QUIT SMOKING: U.S. SALES OF SMOKING-CESSATION AIDS ROSE 25 PERCENT IN DECEMBER 2002 AND JANUARY 2003, SAYS GLAXOSMITHKLINE PLC (GSK), WHICH MARKETS NICORETTE GUM AND THE NICODERM CQ PATCH. SOME 70 PERCENT OF U.S. SMOKERS ARE INTERESTED IN QUITTING.
All information obtained from the respective companies.
To mark Brazil Day 2003, top Brazilian government officials, senior executives from the countrys largest corporations, analysts and investors gathered in New York on Nov. 17. About a dozen listed companies participated. During opening remarks, Luiz Fernando Furlan, minister of development, industry and foreign trade, stressed the importance to Brazil of strong capital markets and multinational corporations. There are no developed countries without first-class companies, he said. We want to have several multinational companies, and most of the candidates are right here in this room. In the spirit of the day, nyse magazine asked several Brazilian CEOs about their countrys place in the global marketplace.
How important are foreign investors to your company? What is your strategy for attracting and retaining them?
Foreign investors are important to accessing a larger capital market and increasing the opportunities to capitalize the company, either with equity or debt funds. Sabesp focuses on the international market and tries to maintain a close relationship with investors. DALMO DO VALLE NOGUEIRA FILHO, CEO, COMPANHIA DE SANEAMENTO BSICO DO ESTADO DE SO PAULO SABESP (SBS) Strong and lasting relationships with investors can only be built if they are based on the highest standards of corporate transparency and disclosure. One of managements priorities is an effective IR program aimed at communicating the companys strategy, operations and financials often. JOO COX, CFO, TELEMIG CELULAR PARTICIPAES S.A. (TMB) AND CEO, TELEMIG CELULAR S.A. Foreign investors, who represent 31.5 percent of total capital and have a long-term profile, are paramount. Since our ADRs launched, enhancements to our IR program, including easy access to management and an interactive Website, have increased transparency. ALVARO PEREIRA DE MORAES FILHO, CEO AND CHIEF ADMINISTRATIVE OFFICER, TELE CELULAR SUL PARTICIPAES S.A. (TSU) Cemigs strategy is to maintain focus on our core business, to be selective on the appraisal of business opportunities, to preserve the companys sound financial situation, and to incorporate governance best practices. International investors have made our growth possible. DJALMA BASTOS DE MORAIS, CEO, COMPANHIA ENERGTICA DE MINAS GERAIS CEMIG (CIG) Foreign investors own more than 70 percent of our free float, and a similar percentage of CVRDs trading volume occurs at the NYSE. To attract and keep them updated, we run two global non-deal roadshows a year, in North America, Australia, the U.K., Europe and Asia. We also participate in international conferences. ROGER AGNELLI, CEO, COMPANHIA VALE DO RIO DOCE (RIO)

ADVANCE YOUR CAREER: A RECENT SURVEY BY KORN/FERRY INTERNATIONAL (KFY) FOUND THAT 41 PERCENT OF CEOS OF GLOBAL COMPANIES IN LATIN AMERICA PLAN TO HIRE MORE EXECUTIVES IN THE NEXT TWO YEARS, AS COMPARED TO THE PREVIOUS TWO YEARS.

NUCLEAR POWER

POSITIVE ENERGY
One out of every 10 U.S. homes and businesses get electricity from an unexpected source: uranium from the former Soviet Unions nuclear warheads, says William H. Timbers, USEC Inc. (USU) president and CEO. United States Enrichment Corp., a USEC Inc. subsidiary, acts on behalf of the U.S. government to commercially implement Megatons to Megawatts, a program to recycle uranium from Russian nuclear warheads as fuel for U.S. nuclear power facilities, he explains. Under Megatons to Megawatts which began in 1993 and runs until metric tons of highly enriched Russian uranium, enough to make 20,000 nuclear warheads, will be converted, USEC Inc. reports. The $8 billion program is a
USEC RECYCLES URANIUM FROM THE FORMER SOVIET UNIONS WARHEADS.
commercial contract between the U.S. and Russia, the company adds. USEC Inc. says it purchases the enriched uranium fuel, which is processed at Russian plants, providing jobs for workers in four cities there, and securely shipped to the U.S. As of the end of December 2003, USEC Inc. says that it and a Russian partner have recycled about 8,000 warheads. Megatons to Megawatts has significantly enhanced world security by steadily reducing stockpiles of nuclear bomb-grade materials, says Timbers. He adds that by the time the program is completed, enough nuclear material will have been recycled to power the entire U.S. for about two years. MF
E M P L O Y E E H E A LT H
ACTIVE CUSTOMERS GET CREDIT
Health maintenance organization PacifiCare Health Systems Inc. (PHS) says it is giving its customers some credit. Under its new Health Credits program, employees of PacifiCare customers who participate in disease-management programs and wellness activities can earn credits that they can use to reduce insurance premium costs and get other incentives, the company says. The program is modeled after incentives in the auto-insurance industry that discount rates to honor students, says Sam Ho, M.D., chief medical officer for PacifiCare. It
FROM TOP: COURTESY USEC INC.; GETTY IMAGES
encourages proactive management of diabetes, coronary artery disease and other chronic conditions through medication compliance, exercise and nutrition, Ho explains. It also awards points for participating in programs such as smoking cessation, nutrition and exercise planning, and weight management, he says. Customers can document their participation either through paperwork or online, PacifiCare reports. Our studies have shown getting to problems before they occur can keep people healthier longer, prevent complications and save money, says Ho. He adds that specific disease-management programs offered by the company for years, now all under the Health Credits program banner, have resulted in $160 million in net savings since 2000. Our customers say [participating] employees are healthier, Ho says. Theres less absenteeism, so productivity goes up. MF

A PA C I F I C A R E PROGRAM REWARDS PARTICIPATION IN WELLNESS ACTIVITIES.
GET ORGANIZED: 45 PERCENT OF U.S. WORKERS MAKE A DAILY PLAN AT LEAST WEEKLY JUST 9 PERCENT MEET THOSE GOALS, SAYS FORTUNE BRANDS INC.S (FO) DAY-TIMERS.
GIVE MORE: WAL-MART STORES INC. (WMT) DONATES MORE THAN $17,000 AN HOUR TO CHARITY.

CORPORATE ID ?

[ NAME

THIS COMPANY ]

D ATA S T O R A G E

FAST SERVICE FOR SERVERS

It wasnt long ago that IT managers of large corporate data centers were required to individually manage, configure and update all connectivity solutions within individual servers to enable robust and high-speed data transfers to and from the companys storage network, according to Emulex Corp. (ELX). Emulex says its HBAnyware solution, which can be used with the entire Emulex family of LightPulse HBAs (host bus adapters), has changed all that. HBAnyware lets you manage HBAs across the network as easily as you network PCs, explains Mike Rockenbach, Emulexs CFO. You can load new firmware or reconfigure the driver across your entire network remotely from a single console.
Established in 1955 by three brothers in Columbus, Ga., this insurance company is now headed by one of the founders sons. The sale of the stuffed version of this companys corporate mascot has generated more than $700,000 for pediatric cancer centers. This companys business in Japan accounts for 75 percent of total corporate earnings. The company was named one of Fortunes 100 Best Companies to Work For in each of the past five years and was on the magazines Americas Most Admired companies list in each of the past three.
SEE ANSWER IN RIGHT MARGIN
Emulex says that HBAnyware cuts server and storage system downtime and increases productivity. The system also updates both current and older generations of its connectivity solutions within servers, eliminating the need to replace them, the company says. Emulex adds that HBAnyware is in place at companies such as Computer Associates International Inc. (CA) and HewlettPackard Co. (HPQ). JSD
HBANYWARE LETS USERS NETWORK THEIR SERVERS LIKE PCS.

WORKPLACE SAFETY

SEA CHANGES
The picture of a sailors knot with intertwining loops that Frontline Ltd. (FRO) has added to all the ships in its fleet symbolizes cooperation and communication, the company says. That image ties in with the themes of Frontlines new program SafetyQuality, it adds. On completion of the program, which includes safety courses for ship managers and crews, each vessel sends feedback to Frontline and its ship managers on how to improve safety, says Capt. Svein Ommundsen, Frontlines fleet manager. Frontline, managed from Oslo, Norway, and registered in Hamilton, Bermuda, is

THE SAILORS KNOT ON FRONTLINES SHIPS SYMBOLIZES C O O P E R AT I O N A N D C O M M U N I C AT I O N , C O R N E R S T O N E S O F T H E COMPANYS NEW SAFETY PROGRAM.
collaborating with a Norwegian airline and a public-relations company that works with the offshore oil industry, both of which have experience with the importance of effective teamwork in accident prevention, says Ommundsen. The other companies lend their expertise on issues such as worker fatigue and communication problems between crew members of different nationalities, Frontline explains. Oscar Spieler, Frontlines managing director, says pilots from Australia and major oil companies worldwide, have shown interest in Frontlines program. JSD
FROM TOP: COURTESY EMULEX; FRONTLINE CORPORATE ID ANSWER: AFLAC INC. (AFL)
LOSE WEIGHT: DURING AN AVERAGE WEEK, IF ALL 1.5 MILLION PEOPLE WHO ATTEND A WEIGHT WATCHERS INTERNATIONAL INC. (WTW) MEETING STICK TO THE REGIMEN, THEY WILL LOSE A COMBINED SUM OF ABOUT 1,125 TONS DURING THE SUBSEQUENT SEVEN DAYS.

HUMAN RESOURCES

A TAX CREDIT FOR WORKERS
For workers who make less than $34,000 a year, the Earned Income Tax Credit (EITC) provision of the U.S. federal tax code provides some financial relief, according to Lieske Renz, the human resources leader for the tristate New York region of KFC Corp., a subsidiary of Yum! Brands Inc. (YUM). The Robin Hood Foundation, a New York-based poverty-fighting charity, which has launched a campaign to spread awareness of the tax credit, explains that the EITC essentially provides workers federal refunds of as much as $4,000 a year if they are in that low-income bracket. But many employees are unaware that the program even exists, a fact that KFC and a number of other companies are working to change, according to Robin Hood Director of Programs Michael M. Weinstein. Our business motivation is that we have happier employees, says Renz. That translates to a happier work environment, and our bread and butter comes from serving customers well. Gap Inc. (GPS) and a McDonalds Corp. (MCD) franchisee have also alerted their employees to the EITC

POSTERS ARE O N E WAY T O SPREAD THE WORD ABOUT EARNED INCOME TA X CREDITS.
program, Robin Hood reports. The companies post flyers, attach information about EITC to employees paychecks and spread the word through meetings, the foundation says. Other companies such as Duane Reade Inc. (DRD) have gotten involved too, Robin Hood says. The EITC law, enacted in 1975, allows employers to pass on as much as half of the governments refund owed to workers throughout the year as part of their paychecks. That way, workers dont have to wait until the year is over to collect their entire refund. Employees have to fill out a W-5 form, and employers have to process it, Robin Hood says. By arranging to provide for the [advanced-payment] EITC, employers can essentially give their workers a free wage increase, says Weinstein.It doesnt cost the firm a dime. Tyler Maroney

INVESTOR ASSETS

A GROUP FOR INDIVIDUALS
AFLAC Inc. (AFL) of course pays attention to all its shareholders, says Shawn Roberts, director of investor relations, but he says the company is particularly pleased when individual investors are National Association of Investors Corp. (NAIC) members. NAIC reports it is a nonprofit group of 28,235 investment clubs and more than 328,000 individual investors nationwide. Its 200 corporate members interact with NAIC individual investors through investor fairs, Webcasts and other events, the group says. NAICs members are ordinarily long-term
COURTESY OF ROBIN HOOD FOUNDATION
member portfolio is $301,300 and that the average NAIC member holds investments for four years. To join, corporate members must be publicly traded on a U.S. exchange and have been in operation for at least five years. Member company representatives meet NAIC investors and present the same information they provide to institutional investors, says NAIC. Beate Melten, manager of investor relations at Mexico-based Cemex S.A. de C.V. (CX), says this interaction is key. It has increased awareness, says Melten. Weve seen a tremendous growth in individual investors. NAIC reports that BP plc (BP) became an NAIC corporate member in 1997, and during the ensuing six years, BP participated annually in an average of six regional investor fairs, exhibited each year at the groups national convention and advertised in NAICs Better Investing magazine. In 2001, NAIC says its investors held 277,677 shares of BP stock. By 2003 that number had more than doubled, to 624,756, NAIC reports. MF
investors who not only hold our stock but also reinvest the dividends, says Roberts. Theyre loyal and educated, and they do their research. NAIC individual members represent $125 billion in total invested assets and monthly put a combined $200 million into the market, says Dick Holthaus, NAIC president and CEO. He reports that the average
EXERCISE MORE: BALLY TOTAL FITNESS HOLDING CORP.S (BFT) NEARLY 420 CLUBS GET AN ESTIMATED TOTAL OF 150 MILLION VISITS A YEAR.

Monopoly, Scrabble and Twister, all supported by pumped-up marketing, advertising and promotion budgets. The company is heartened by what ShopKo Stores Inc. (SKO), which operates 361 stores in the Midwest and western states, calls a wave of nostalgia that swept over toy shoppers this past holiday season. Popular toys from the 1980s are making a comeback, according to the discount chain, which put Hasbros My Little Pony and Trivial Pursuit on its top 10 toy list for 2003. One recent classic update involves the 35-year-old Lite Brite. Following consumer research that suggested kids wanted to play with the toy with their friends, Hasbro developed the four-sided Lite Brite Cube, the company explains. Now children can not only play with a friend, they can also make more than one design without dismantling the ones they have already created. According to the company, which tries to get products to market as soon as possible after passing development muster, this insight drove incredible incremental growth for the brand.
Tonka and allows children to build sets for the action toys, merging two popular play habits.

M OV I E D E A L S

atently the not inconsiderable money

BEYBLADE

needed to develop and market new product extensions, Verrecchia makes clear, comes from what used to be earmarked for movie licenses. To obtain the rights to make action figures and other toys related to recent Star Wars movies, for example, Hasbro says it paid $590 million, in addition to stock warrants that, if all are exercised, would give producer George Lucas 8 percent ownership of Hasbro, compared with Alan Hassenfelds 11 percent stake. Verrecchia says Hasbro became trapped into buying licenses of movie properties to make money. The companys previous overhead structure, he notes, required Hasbro to get the hot title. Although that strategy worked well for toys licensed under such hits as Jurassic Park and Batman, if a movie did not do well, says Verrecchia, the products based on the movie did not sell well. And if everybody knows you have to get the hot property, he continues, youre not in a good negotiating position and may very well overpay. says Verrecchia, the company scrutinizes deals more carefully, pricing its negotiations based on what we think we can do with a property. And if that price isnt what the studio wants, he insists, we walk away. Hasbro still wants tie-ins with movies and has licensing deals with 2003s Finding

NE W E N T R AN T S

ut its not all tried-and-true hits for Hasbro, says Verrecchia, who points to Beyblade, one of the companys most successful recent launches, a line of spinning tops for boys over eight years old. Hasbro intensely markets the action toy, which has also spawned a TV show and is used for battle competitions. The company introduces new Beyblade accessories and assortments (Dragoon Storm Attack! Bump King Endurance! Seaborg2!) each month. It also hosts Beyblade competitions and previews

Now, A key component of long-term
new products at such chains stores as Wal-Mart Stores Inc. (WMT) and Toys R Us Inc. (TOY). The company says it is hoping for similar success from launches such as VideoNow, a portable, personalized video player for kids, and Go Go My Walkin Pup, a new addition to the popular FurReal Friends line of plush toy pets, which (VIA) Nickelodeon.

TE G Y involves

Nemo and 2004s Shrek 2 but Verrecchia isnt kidding. Sales of toys from movie licenses from which Hasbro received the greatest revenue in 2000
Although the company cautions that work
made the Nick Jr. Holiday Hot List on Viacom Inc.s Aiming for the best of both worlds by simultaneously rejuvenating established brands and entering new markets, Hasbro is also introducing its BTR (Built to Rule) block construction line. The product takes existing brands such as G.I. Joe, Transformers and
still needs to be done, Hasbro reported third-quarter 2003 revenues of $971 million, up 18 percent from the same period in 2002, and revenues in the U.S. toys segment of $377.3 million, up 23 percent from $307.2 million a year ago. Verrecchia acknowledges that for all of his carefully laid plans, challenges remain. He is hoping core product lines such as Play-Doh,
ALL TOY PHOTOGRAPHS COURTESY HASBRO
reinvigorating those brands with the greatest growth potential.
accounted for a reported 26 percent of the company's total revenue, compared with less than 10 percent expected from movie deals in 2003.
Transformers and trading-card games will lead a rebound in international sales, which fell three percent in 2002, although reportedly up for the first three quarters of 2003. He allows that Hasbro faces tough competition in the fast-growing electronic-learning-toy market, but says the company is developing electronic products for both preschoolers and tweens (youngsters between childhood and teenage years). Of course, Verrecchia says he must prove that a
ones that tend to be creative and stimulating and appealing. And as long as you have that, consumers will respond and buy those products.

D E B T TO CHIL D REN

ocus on corporate governance continues to occupy Hassenfeld. The company

( T L D ) There is

one important thing that I would like to pass on to the political world: Be customer-focused. There are many things that would be improved in society if we could transfer more of the customer orientation of private enterprise to the government sector. I have learned from my political career [as Denmarks former Minister of Finance and a member of parliament] the importance of being able to position yourself in the surrounding world. This applies to political parties, people and companies. As a business leader, you must relate in a positive way to the stakeholders; otherwise, you will end up in trouble.
C S A R A L I E R TA , C H A I R M A N A N D C E O , T E L E F N I C A S. A.
necessary to make business and government aware of the benefits of sharing best practices and understanding their counterparts strengths. There are a number of different methods, including participation in government-business forums such as the World Economic Forum. Its worth mentioning the establishment of ad-hoc committees, formed by business executives, to advise the government on certain topics. Spains Ministry of Science and Technology created a commission to advise on a plan to promote the Information Society. This commission recommended a business approach to the plan. The participation of former government officials on company boards or advisory committees is also very useful.

BASF AG (BF)

How can companies better position themselves to anticipate change and respond to it, particularly in the post-bubble era?
H E I N R I C H V. P I E R E R , P R E S I D E N T A N D C E O , S I E M E N S A G
D R. J R G E N H A M B R E C H T, C H A I R M A N O F
THE BOARD OF EXECUTIVE DIRECTORS,
One way to prepare for change is to create early-warning systems. For the short term, Siemens early-warning systems allow us to gather comprehensive market data and react quickly to changing circumstances. For the longer term, we have a company-wide process called Pictures of the Future, which enables us to draw up detailed future scenarios and figure out which technologies could be viable for our businesses. In any case, one has to continuously look toward the future to be prepared for changes. Even better is inventing technologies and thereby shaping the future yourself.
If youre reacting to change, youre
too late. You must anticipate change and help to make it happen. Successful companies will become more and more externally focused. The best way to accomplish this is to get closer to your customers. You must understand their business as well as your own. By doing so, you will be in a much better position to help them manage change and, as a result, will increase your value to them.

THE TRADING VOLUME ON THE NYSE OF SOUTH AFRICAN STOCKS HAS INCREASED 1,600% SINCE 1999.
COURTING VISIBILITY Listed on the JSE Securities Exchange in Johannesburg since 1979, Sasol had traded on Nasdaq for 21 years before transferring to the New York Stock Exchange in April 2003. Growing investor interest, especially from North America, supported this transfer, says investor-relations manager Cavan Hill. Integral to Sasols globalization strategy was, he describes, the need for a higher investor profile and [the desire] to be placed with our peer group most of the large oil, gas and chemical companies are listed on the NYSE. At the time of its listing, Sasols CEO and Deputy Chairman Pieter Cox said the NYSE exposure would give the company higher U.S. market visibility and hopefully increase appreciation for Sasol as an attractive, value-adding investment. In
is a joint venture between the U.S.s SBC Communications Inc. (SBC) as the lead partner and Telekom Malaysia SDN Berhard. Thintana acquired 30 percent of Telkom from the South African government in 1997. In return for five years of exclusivity on basic fixed-line telecom services, it agreed to prepare Telkom for competition and the IPO, while extending services into underserviced areas. As of Sept. 30, 2003, 26 Thintana managers remained at Telkom, compared with 75 in 1997, says Nxasana. The intent is to have South Africans take over leadership, adds Chief Operating Officer Shawn McKenzie, an American loaned to Telkom from SBC in 2002. We have seen a 171 percent increase in earnings per share for the six months to Sept. 30, 2003, achieved under the leadership of a predominantly South African team, he adds. Telkom has benefited tremendously from association with Thintana, especially in the transfer of technology and product development skills, marketing
Under the guidance of SBC and Telekom Malaysia, Nxasana and his team have provided clear vision and strong leadership. They have improved services, products and operating efficiencies while cutting operating costs and capital expenditure, says Stephen Carrott,* technology, media and telecom analyst at Andisa Securities, a division of South African financial-services firm Andisa Capital. Without Thintana, it is debatable whether Telkom would have learned to play hardball so quickly or been able to almost halve its landline workforce since 1997, he says.

>> TURNAROUND

The Consumer Electronics Association (CEA) reports that more than 230 models of digital TVs are for sale in the U.S. These include free-standing rear-projection models and flat-screen displays from manufacturers such as Thomson S.A. (TMS) and Royal Philips Electronics NV (PHG). Computer companies have also entered the market, with Hewlett-Packard Co. (HPQ) announcing plans to offer large flat-screen televisions later this year, and Gateway Inc. (GTW) calling itself the largest seller of plasma TVs in the U.S. After youve actually watched your first high-definition movie or game, youll never want to go back, says Des Power, senior vice president of Philips Consumer Electronics North America, a division of Royal Philips. With the same 16-to-9 aspect ratio as a movie screen, a high-definition television (HDTV) picture is five times sharper than that of a conventional television, according to manufacturers, and has more than 2 million pixels, compared with an analog TVs onehalf million pixels. Plus, HDTVs may include the same digital surround sound found in movie theaters and DVDs, manufacturers say. The CEA reports that the typical digital TV sold today is a 50- to 54-inch HDTV-ready rear-projection model retailing for around $2,200. The group estimates that by the end of 2004 the price should fall to $1,500, and it expects 5.8 million people will buy digital TVs this year. When, and if, the midpoint price falls below $1,000, the CEA expects that HDTVs will spread from the 6 percent that own them today to 20 percent of U.S. households. The next generation of TV display technology, suggests Peter Bocko, P.h.D., director of technology strategy for Corning Inc. (GLW), will be Organic Light-Emitting Diodes (OLEDs), thin layers of films that
B Y N O S H U A W AT S O N | I L L U S T R AT I O N S B Y B R YA N C H R I S T I E D E S I G N
DIGITAL TV SCORES BIG WITH VIEWERS

Digital Programming

According to the Federal Communications Commission (FCC), which has required all TV stations to replace analog broadcasts with digital broadcasts by year-end 2006, 1,000 digital stations currently operate in the U.S. Launching the first 24-hour highdefinition (HD) sports network in March 2003, ESPN, owned by The Walt Disney Co. (DIS), now airs the football and baseball seasons and 140 other events in high-definition format. Although ESPN has only four HD-capable remote production trucks, Disney reports it is building the worlds largest digital production facility and eventually will produce all its shows in HD format.

OLED screens are made of layers of organic film that light up when electrified.
LCD displays are made up of two glass layers, which are filled with liquid crystals and then stimulated with electrical current.

PLASMA TV

LIQUID CRYSTALS

ELECTRODE

ACTIVATED LIQUID CRYSTAL

Home Gateway Boxes

To ensure operability between boxes and displays made by different companies, the FCC recently approved a plug-and-play standard that will allow digital cable systems to work with any tuner. This increases opportunities for companies such as Motorola Inc. (MOT), which says it recently developed the first box to record and play back videos in HD format. The company also says innovation can happen thanks to set-top boxes, including a connection with the telephone so when it rings the caller's voice can come through the TV with a real-time digital image of the person projected on the screen. Rogers Cable Inc., a division of Rogers Communications Inc. (RG), says it is experimenting with set-top cable boxes that will run an entire home network, including the television, Internet, telephone, security system, heat and appliances.
Roughly 20 million U.S. homes access digital cable service with as many as 1,000 channels, according to the Cable and Telecommunications Association (CAT). Cable companies, including Cablevision Systems Corp. (CVC), Cox Communications Inc. (COX), The E.W. Scripps Co. (SSP), Rogers Communications Inc. and Time Warner Inc. (TWX), report converting analog signals to digital signals, compressing the signals to transmit up to 12 digital channels in the same bandwidth as one analog channel. Industry estimates suggest the 2 million current HDTV cable viewers will grow to 12 million by mid-2004. Cable companies report that although video-ondemand service is already popular, in the future, watching television will be more like watching a DVD, with extra data, graphic pop-ups and the option to view the same scene from different angles. Additionally, broadcasters say interactive shows and data services may be commonplace.

Satellite

Another 20 million American homes subscribe to satellite TV services, reports the CAT. More than half are customers of DirecTV, which is owned by Hughes Electronics Corp. (HS). Broadcasters bounce signals off satellites orbiting the Earth, leased from such companies as APT Satellite Holdings Ltd. (ATS), Asia Satellite Telecommunications Holdings Ltd. (SAT) and New Skies Satellites NV (NSK). Satellite companies digitally compress their signals to send more channels in the same bandwidth. HDTV satellite programming is becoming available, and Cablevision says it just launched a 24-channel HDTV satellite service. To compete with cables video-on-demand services, DirecTV and BskyB, owned by British Sky Broadcasting Group plc (BSY), report they are among satellite providers now bundling personal video recorder technology into set-top boxes.

XENON AND NEON GASES
Have an idea for a Technovations topic? Send it to nyse@timeinc.com
PETROBRAS ACTIONS ARE REL ATED TO WHAT WE ARE BEST AT EXPLORATION AND DEEPWATER WORK, SAYS PRESIDENT AND CEO JOS EDUARDO DE BARROS DUTRA.

Q&A

JOS EDUARDO DE BARROS DUTRA, PRESIDENT AND CEO, PETRLEO BRASILEIRO S.A. (PBR)

The Deepwater Front

hen the Brazilian government created Petrleo Brasileiro S.A. Petrobras (PBR) in 1953, the country was in the midst of an energy shortage. At the time, says Petrobras President and CEO Jos Eduardo de Barros Dutra, some skeptics didnt believe that the company would ever have the capacity to extract oil in Brazil, or even if oil existed there. But the company discovered that much of the oil lay in offshore basins thousands of feet below the oceans surface, Dutra explains. This, he adds, propelled Petrobras to become a leader in deepwater exploration and extraction technology.
Today the company reports it is Brazils largest industrial corporation, with more than 48,000 employees and revenues of $31.3 billion for the
nine months to September 2003. Petrobras says it owns nearly 10,000 miles of pipeline in Brazil and other countries, and operates about 7,900 service stations worldwide. Every day Petrobras produces a reported 1.708 million barrels of crude oil and 1.992 million cubic feet of natural gas. Dutra, 46, became president and CEO in January 2003 following the election of Brazilian President Luiz Inacio Lula da Silva. A member of Lulas
Workers Party and a senator for Sergipe state since 1994, Dutra, a geologist, worked for Petrobras as a geological planner from 1983 to 1990. Petrobras, which has been traded publicly in Brazil since the companys formation, listed on the NYSE in 2000. Today nearly a third of Petrobras shares and 56 percent of its voting power remain in government hands. Petrobras projects it will triple production outside of Brazil by 2005. The company says it is committed to producing enough oil in Brazil to allow the nation to be self-sufficient in that resource by 2006.
WHAT ARE THE TOP ISSUES AFFECTING PETROBRAS?
Petrobras has a strong financial and economic foundation, but our capital costs are still higher than those of other oil companies in the world. This is because capital markets link Petrobras with the economic situation in Brazil. Weve been trying to show investors that though were a Brazilian company with a majority of voting stock in government hands, we apply corporate governance tools. Were fine-tuning those tools, increasing transparency and guaranteeing the rights of minority shareholders.

The Exchange will also make public how members and investors can communicate with the NYSEs directors, how top management is compensated, as well as the Exchanges nominating procedures, charitable activities, political activities and contributions. The new architecture empowers a board of directors with the independence to address issues objectively and the constituent input to address them intelligently, Reed adds. With a new board and permanent management in place, the Exchange will be in a position to openly and collectively address issues of market performance, access and market structure that in addition to self-regulation are important to the continual modernization of our capital markets. The fact that the Exchanges day-to-day operations have gone on without missing a beat tells me there must be a consistent level of good governance in place, adds Rogers. This is a true barometer of the confidence in the Exchange. There is no question as to the importance of the NYSE to our shareholders and our company, which is something we dont take for granted. Remember, as a secondary market the NYSE is second to none, Ward says. This is especially true when one looks at the shortcomings of other markets in terms of pricing mechanisms, liquidity, market impact of trades and market depth. This is something to which RPMs Sullivan can attest: Since we moved from the Nasdaq in 1998, we have seen the liquidity in our stock increase, the spread in our trading decline, and the breadth of our investor base improve. What we appreciate most is that the Exchange still brings a people element, a relationship that you dont get in other trading environments. And thats very healthy.

TRANSPARENCY

To ensure workings of the board are transparent, the Exchange will disclose annually the board committee charters and activity reports; membership on the BoD, the BoE and the various standing and advisory committees; and the facts establishing each board members independence, including any non-director relationship between board members and the NYSE itself as well as any material relationships among board members.
MEMBERS OF THE FIRST BOARD OF DIRECTORS UNDER THE NYSE'S NEW GOVERNANCE STRUCTURE

JAMES SALZANO

HERBERT ALLISON

EUAN BAIRD

History

Instructions
South America and was popularized on Spanish ships in the Caribbean and the South Seas, as well as by Pirates! Played by two or more participants, poker dice games were popular with sailors and viewed as a way to pass the time pleasantly while they were at sea. The games required little explanation and few materials. Poker dice games were popular in most ports in the 1950s, and even today dice games may be found in marinas and yacht clubs. Many families have long played these games at home, at the cottage and on their boats before the games were commercialized. At the time, poker dice games consisted of playing dice with materials made by hand, with no rules or standardized tally sheets. Grinsells idea behind the creation of YUM was to unify these standards and develop a marketable version. bones. A person would win if the bones fell on a particular side. The cubic dice we know today made their first appearance about 5000 years ago and were made mainly of bone, ivory and stone. From the onset, dice were designed so that the sum of two opposite sides would equal seven, which means, one facing six, three facing four and two facing five. Archaeologists have found some of the oldest dice in many tombs in the region of India, thus highlighting their Asian origin. Digital typography had yet to be invented at the time, so this is why there are small dots on the dice, an aspect that has been preserved until today. Like the first dice games, poker dice games also have Asian origins. These origins explain, among other reasons, the inspiration behind Mr. Grinsells choice of name and the first packaging design of YUM. These dice games were popular on boats and ships that traveled the spice route to Spain. In fact, in Spain, there is a dice game known as Liars Poker Game. This game originated in
This timing of the offer was perfect for Mr. Grinsell, now overwhelmed by the growing success of YUM and experiencing difficulty meeting the many steps required for the sale of his game. To lighten his workload and broaden his horizons, Mr. Grinsell finally accepted the Parker Brothers proposal.

Background Information

It was the pleasure of being with friends and family playing various games, talking and having fun for hours that would prompt Canadian Harvey Grinsell, of American origin, born in 1908 in Rhode Island, to embark on a huge endeavour. After noting the contentment provided by the hours of pleasure playing poker dice, he developed an idea that would change his life and family evenings in Quebec. Thus, during the 1950s, Mr. Grinsell developed a commercial version of poker dice games and various non-standard scorecards that have brightened family gatherings for longer than one can remember. After many hours of work on the concept in 1959, he finally managed, in 1960, to market the game, known today as YUM.
Mr. Harvey Grinsell & Son, Jacques Grinsell
After launching the game in 1960, Mr. Grinsell oversaw the many steps and activities needed to meet the demand. After preparing the boxes and printing the instructions, he assembled each component of the game in his house with the help of family members. The games entrance on the market was a success. Offered at Eatons and Simpsons at the time, the family game soon attracted the attention of the largest toy producers in the world. Seeing the success of his first game, Mr. Grinsell decided to market a second game, called Ambition. This same game was later renamed Yum Ambition, a game that may be found in the YUM special 50thanniversary edition. In 1966, recognizing the immense potential and future of YUM, Parker Brothers, known for its Monopoly game, offered to purchase rights to produce the game from Mr. Grinsel.
A few years later, in 1991, Hasbro, a leader in the toy market, decided to expand its product line by acquiring one of its competitors, Parker Brothers. Following this transaction and the death of Mr. Grinsell in 1986, his son, Jacques Grinsell, recovered the rights previously granted to Parker Brothers to follow in the footsteps of his father. Subsequently, Jacques Grinsell made the acquaintance of the Richer family and the Bojeux company from Montreal. They proposed to refresh the presentation of the game and launch a completely redesigned YUM on the market. The agreement between Jacques Grinsell and the Richers not only breathed new life into the game, but also paved the way for a growing local success story.

A bit of history.

For thousands of years, people have been rolling dice for fun. The earliest dice used for entertainment were made of sheep 2
Today, Wooky Entertainments team continues to spread the YUM brand in collaboration with Jacques Grinsell, Editions Gladius and several new partners.
In 1995, Jacques Grinsell raised the idea of developing a new version of YUM to introduce it to children. By combining the YUM classic game with animal illustrations, Jacques Grinsell gave young people the opportunity to learn while having fun playing Safari YUM! The first version of the game was officially launched on August 1, 1995 and is still widely popular. Other new versions of the game were also launched: YUM Ambition, YUM Bingo!, YUM Dora the ExplorerTM and YUMSpongeBobTM! Following the huge success of the brand in 2007, YUM and Loto-Quebec joined forces and launched a new instant game: the lottery scratch YUM. Again, it was a success: two series of instant lotteries were sold between 2007 and 2009, leading to over 15 million dollars in sales. In addition, to celebrate the 50th anniversary of YUM, in September 2010 Loto-Qubec launched another instant lottery special edition to celebrate the success of this 100% local game.

Instructions YUM Classic

Aim of the Game
From its introduction in the 1960s, YUM continues to evolve with even more prestigious projects such as the organization of a YUM tournament in Quebec, the launch of a YUM iPhone application, the introduction of the new Cross YUM - a written version to play in magazines and newspapers - and a new interactive website. In the year 2010, Wooky Entertainments entire team is proud to celebrate with you the 50th anniversary of YUM, the most popular poker dice game loved by families everywhere! To collect the most points through dice combinations. Players must try to complete the dice combinations entered on their score sheet by collecting the greatest possible number of points. To achieve this, a player is entitled to roll the dice up to three times per turn. If the player fails to complete a combination after the third roll, the player may add up his or her points in the most advantageous way possible.

Before Playing the Game

Each player takes a score sheet and places it nearby on the table. Players choose at random who goes first. The game is played clockwise. The first player places the dice in the cup.
Example: While trying to complete a FULL HOUSE (three of a kind and another pair), the player ends his or her turn with three 6s, one 2 and one 3. The player can add the three 6s together and enter a score of 18 in the sixth square of the ROLL 1s, 2s, 3s, 4s, 5s, 6s or enter 18 in the 3 of a KIND square of the score sheet. A player may make only one combination per turn of play. For example, if the player rolls a FULL HOUSE on the third roll and a FULL HOUSE score has already been entered on his or her score sheet, the player must tally the score obtained to his or her best advantage and enter it in another square. Example: Three 6s and two 5s can be scored to total 28 points in the HIGH ROLL square OR the 6s can been added for a total of 18 in the sixth square of ROLL 1s, 2s, 3s, 4s, 5s, 6s,OR the five dice may be totalled as 10 in the fifth square of the same section. If these alternatives have already been scored and entered, the player must enter 0 in another square of his or her choice. When all players have completed their thirteen combinations, their total scores are compiled. The player with the highest score wins the game.

Yum for Iphone

Playing the Game

www.playyum.com

The first player rolls the dice. Based on the numbers obtained on this first roll, the player decides what combination to attempt. The player leaves the dice chosen to make the combination on the table and then rolls the remaining dice. The player may also choose to roll the five dice a second time. A player may roll the dice a maximum of three times per turn. If the player completes the combination on the second turn, points are compiled and the player does not roll the dice a third time. Then the next player takes a turn. If a player fails to obtain a combination after three rolls of the dice, the player must tally the score obtained to his or her best advantage.

Upper Half

ROLL 1s, 2s, 3s, 4s, 5s, 6s
The total number of one kind in three throws, for example:

SHORT STRAIGHT OF 4

Instructions YUM Ambition
Aim of the game Validating the dice
Once the player throws and obtains 3 identical dice, he must throw the dice again in order to obtain a or a to validate
Score 15 points for any sequence of 4 consecutive numbers, for example:
scores 15 points in the SHORT STRAIGHT of 4 box. (3 + 3 + 3) scores 9 points in the 3s box.
To be the first player to obtain points.

LONG STRAIGHT OF 5

Playing the game
The oldest player starts the game. The game is played clockwise and each player must qualify before obtaining points.
If a player scores 63 points or more in the upper section (1s through 6s), that player earns a bonus of 25 points.
Score 20 points for any sequence of 5 consecutive numbers, for example:
his trio. Once validated, the points obtained by the validation dice are added to the points already earned. If the player has not been successful in validating his trio, he automatically loses the points obtained for this turn. The only two dice used for validation are the and the. Once a player has decided to stop and register his points he cannot lose them. The first player to accumulate points is the winner. However, this must be achieved by throwing the exact count to complete the points at his last throw. Increase your pleasure by playing as a team. Use one score sheet per team. Attention Ambition devours its slave!

Lower Half

3 OF A KIND
Three dice match, score the total of all of the dice (3 of a kind + the other 2 dice).
scores 20 points in the LONG STRAIGHT of 5 box.
To qualify, each player must throw the dice three times in order to obtain an a. and

HIGH ROLL

Any combination of dice faces whenever the player chooses to use it. Tally the total of all the dice faces, for example:

If the player does not qualify with these three (4 + 4 + 4 + 5 + 6) scores 23 points in the 3 OF A KIND box. throws, he must pass the dice to the player (1 + 2 + 4 + 4 + 6) scores 17 points in the HIGH ROLL box. to his left.

4 OF A KIND

Four dice match, score the total of all the dice (4 of a kind + the other die).

FULL HOUSE

Scoring points
Each time a player throws the dice, he must obtain points. The player has the choice of accumulating points, based on his ambition, or to stop. If the player decides to throw the
Tally 25 points for three of a kind and another pair, for example:
(2 + 2 + 2 + 2 + 4) scores 12 points in the 4 OF A KIND box.
scores 25 points in the FULL HOUSE box.
dice again and does not obtain any points, he loses the accumulated points for this turn.
Tally 30 points for five numbers of one kind, for example:
scores 30 points in the YUM box.

Enjoy the game!

50 points

100 points

200 points 300 points

500 points 600 points

400 points 6

1000 points

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