August 2006

Total Population: 1.6 million Virginia’s Hampton Roads: Geography Gloucester 36,695 Total Population: 1.6 million James City 53,487 York 60,948 Williamsburg11,605 Poquoson 11,844 Newport News 181,647 Hampton 146,878 Norfolk 241,727 Isle of Wight 31,925 Portsmouth 99,617 Southampton 17,585 Virginia Beach 439,467 Suffolk 73,515 Chesapeake 210,834 Franklin 8,594

Regional Opportunities Today we are competing with regional economic development groups throughout the USA and the WORLD “There is nothing in economic development that creates as much confusion in the minds of company executives, prospects, and site selectors as competing organizations representing overlapping geography. The merger of the Hampton Roads Economic Development Alliance and the Peninsula Alliance for Economic Development is a clear signal that leadership in the Hampton Roads region is serious about economic development.” Eric Canada President. Blane, Canada Ltd. Wheaton, IL

HREDA – Locality Partnership HREDA Business Attraction Local ED - Marketing Missions - Trade Shows - Research Leads Special Events Direct Mail International Promo Campaigns Consultant Relations National Public Relations Existing Industry Asset Development Small Business Hospitality / Tourism Retail Entrepreneurial Programs Workforce Development Community Redevelopment HREDA New Business Attraction Local ED “Deal Closer”

Project Initiation

Marketing Services for 2005 PERFORMANCE MEASUREMENTS 225 Corporate Appointments 70 Consultant Appointments 72 Client Visits HREDA OUTREACH 24 Domestic Marketing Missions 14 International Marketing Missions 18 Domestic Trade Shows 19 Special events 11 International Trade Shows National and international Advertising This activity has resulted in 10 Announcements 1,867 New Jobs Average Base salary of $39,845 Capital Investment of $104,007,104

Virginia Beach 2.9 Residents One Metro Area WHEN 100 NEW JOBS ARE CREATED IN A HAMPTON ROADS CITY OR COUNTY HERE IS WHERE THE HOLDERS OF THESE JOBS WILL RESIDE Example: 100 Jobs Created in Hampton Virginia Beach 2.9 Residents Suffolk 1.3 Residents York 9.9 Residents Hampton 100 Jobs 49.2 Residents Portsmouth 0.9 Residents Norfolk 2.3 Residents Newport News 23.1 Residents

Virginia Beach $0.32 by Virginia Beach Residents One Metro Area WHEN $1.00 OF NEW PAYROLL APPEARS IN A HAMPTON ROADS CITY OR COUNTY, HERE IS THE AMOUNT EARNED BY INDIVIDUALS RESIDING IN VARIOUS LOCATIONS Example: $1.00 Earned in Norfolk Virginia Beach $0.32 by Virginia Beach Residents Hampton $0.03 by Hampton Residents Chesapeake $0.14 by Chesapeake Residents Norfolk $1.00 Earned $0.32 by Norfolk Residents Portsmouth $0.04 by Portsmouth Residents Suffolk $0.02 by Suffolk Residents Newport News $0.02 by Newport News Residents

One Metro Area “It is apparent that our region is highly interdependent from an economic standpoint. Hundreds of thousands of citizens live in one location, but work in another.” Dr. James V. Koch President Emeritus, Old Dominion University

Metropolitan Statistical Areas Economic Strength Ranking Economic Strength is the long-term tendency for an area to grow consistently in both size and quality. There are 361 Metropolitan Statistical Areas in the United States. The highest ranked areas have had rapid, consistent growth in both size and quality for an extended period of time. The lowest ranked areas have been in volatile decline for an extended period of time. 2005 2004 Change Direction Washington-Arlington-Alexandria 1 3 Advanced Charlotte 3 1 Declined Richmond 18 19 Advanced Raleigh 19 9 Declined Baltimore 36 44 Advanced Hampton Roads 43 59 Advanced Durham 48 34 Declined Charlottesville 63 41 Declined Greensboro 97 124 Advanced Source: Policom Corporation

Economic Development Budget Comparisons How will Hampton Roads compare in 2007? Competitive Annual Public Private Markets Population Budget Sector Sector Fairfax, Virginia 2,000,000 $5,000,000 100% 0% Savannah 400,000 $4,500,000 N/A N/A Jacksonville 1,224,000 $4,000,000 50% 50% Indianapolis 1,900,000 $3,600,000 60% 40% Hampton Roads 1,600,000 $3,200,000 50% 50% Richmond 1,153,000 $3,200,000 74% 26% Charlotte 2,263,000 $3,000,000 50% 50% Piedmont Triad 1,517,000 $2,186,500 66% 34% Raleigh/RTP 1,700,000 $1,600,000 75% 25% Charleston 900,000 $1,500,000 55% 45%