Print Purchases and Outlook January 28, 2003 -- Between 80% and 90% of respondents typically purchase print the previous month. CAP Ventures believes this reflects the sample (weighted towards larger print customers) and bias towards participating in the survey. As with many surveys, we suspect that people who did not purchase print in the previous month may be more likely to not participate in the survey. Monthly print spending declined further over the winter from the summer and fall. CAP Ventures does not believe that the decline over the summer and fall months was due to changes in sample because mean annual print spend did not varied substantially through the year. However, the January decline may have been partially affected by the fact that the mean annual print spending data collected this month shows a noticeable drop. The decline in average monthly print spending over the winter months, however, is consistent with print spending over the fall and winter months last year. The six-month outlook for print spending continues to be positive and is up substantially in January. You can see the steady increase in six month outlook in the late winter and early spring last year. The declining six-month outlook in the late spring and early fall reflects the typical slow down in spending associated with the winter months. CAP Ventures believes the rise in six-month outlook in January portends well for spring 2003. Respondent Profile * Sample size: Between 75 and 100 print customers respond every month. * Primary business: Distributed across key industries including advertising, financial, government, professional services, manufacturing, retail and other. * Size of company: The sample is weighted towards medium to large print customers compared with the overall population of companies. Approximately 25% of the companies have annual print budgets in excess of $1 million; another 20% have revenues under $50,000. * Geographic region: There is representation from all major regions in the United States but slightly smaller sample sizes from the Northeast and South regions relative to the overall business population. * Title: The respondents are consistently from purchasing, creative, marketing and administration. * The mix of respondents by industry, size of company, geography and title has been very consistent throughout the year. This consistent sample profile is important when comparing results over time.