2. The Greater Washington Board of Trade’s Business Outlook 2011 Survey indicates business leaders’ optimism on the state of the local economy. Business leaders express their optimism through perceptions about the economy and their plans to hire, expectations for revenue and intentions to spend. Surveys of business decision-makers are a staple of national, regional and local economic analysis. Business surveys are used to measure trends, grasp new opportunities and identify approaching hazards. The following report presents current findings of business leaders’ optimism on the local economy and indicates changes over time. BUSINESS OUTLOOK 2011 SURVEY CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 1 Greater Washington Region HOW IS THE BUSINESS OUTLOOK INDEX CREATED? The Business Outlook Index is made up of the Index of Current Conditions and the Index of Future Expectations. The Current Conditions Index is based on survey questions related to overall business and economic conditions and an assessment of each business’s current financial situation compared to its financial situation a year ago. The Future Expectations Index is based on survey questions that probe: (1) expectations for general business and economic conditions over the next 6 months, (2) expectations for employment changes over the next year, (3) expectations for softening and strengthening of individual businesses over the next year and (4) expectations for revenue changes of individual businesses over the next year.

3. FINDINGS There was no change over the past six months in the Business Outlook Index. Both the Current Conditions Index (76) and the Future Expectations Index (91) remained the same, for an overall Business Outlook index of 83. This is the first Business Outlook survey conducted of business executives in the Greater Washington Region since February 2009, when the survey series started, that did not show improvement over the prior survey. REGIONAL BUSINESS OUTLOOK TRENDS OVER TIME CONDUCTED BYPRESENTED BYSPONSORED BY DATA PRESENTED AS AN INDEX PAGE 2

4. Current business and economic conditions in the Greater Washington region are… Since last year, your business’s overall financial situation has… INDEX OF CURRENT CONDITIONS DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 3 The Index of Current Conditions is based on two questions: FINDINGS 64% of the business executives interviewed in the latest survey said conditions in the Greater Washington area are mostly good while 20% said mostly bad. 52% in the latest survey said their business’s overall financial situation has improved over the past one year while 17% said they had declined. 1 2

5. Business and economic conditions in Greater Washington will… Your company or organization will… INDEX OF FUTURE EXCEPTATIONS DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 4 The Index of Future Expectations is based on four questions: FINDINGS Looking ahead six months, 57% of business executives surveyed in the latest study believe that conditions will improve. Only 6% said they would get worse. 39% expect that their businesses will add jobs while 6% expect to decrease the number of its employees. In the next 6 months… 1 2

6. Your business will… Your company’s or organization’s total revenues and/or total sales will… INDEX OF FUTURE EXPECATIONS DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 5 The Index of Future Expectations is based on four questions: FINDINGS 64% of business executives expect their companies will strengthen over the next year while 7% expect they will soften. About the same number (63%) expect their revenues and total sales to increase over the next year. Only 3% expect them to decline. In the next year… 3 4

7. ECONOMIC CONDITIONS: LOCAL VS. NATIONAL DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 6 FINDINGS Once again, local business executives rate current economic conditions in the Greater Washington Region as much better than they rate national conditions. More executives in the Greater Washington Region say NATIONAL conditions are mostly bad (47%) than who say mostly good (31%). At the same time, more say the region’s conditions are mostly good (64%) than mostly bad (20%). Current national business and economic conditions in the United States are… Current business and economic conditions in the Greater Washington region are…

8. BUSINESS FINANCING AND CREDIT DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 7 FINDINGS Looking back over the past six months, only 1% of respondents said they believe business financing has gotten much easier. That’s compared to 19% who say it’s gotten much harder. While a total of 22% say business financing has gotten easier, 42% say it has gotten harder over the past six months. Acquiring bank financing and credit for business and organizations has become… Over the last 6 months… Note: This question was not asked in the February 2009 or June 2009 surveys. Results are rounded. Sums of multiple responses may vary.

9. BUSINESS FINANCING AND CREDIT DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 8 FINDINGS Overall, more survey respondents expect business financing to get easier (46%) than harder (33%) over the next six months. In the next six months… Note: Results are rounded. Sums of multiple responses may vary. * Answer options in the February and June surveys were limited to “easier” and “harder.” Acquiring bank financing and credit for business and organizations will be… February 2009 June 2009 December 2009 April 2010 November 2010 Much easier**3% A little easier**33%44%43% Total easier15%27%37%47%46% A little harder**23%18%23% Much harder**15%8%10% Total harder61%40%38%26%33% Same (volunteered) 10%13%16%20%12%

10. February 2009 June 2009 December 2009 April 2010 November 2010 Purchase new equipment33%43%42%57%56% Upgrade computer technology 36%45%47%56%61% Take a risk on a new idea56%51%45%60%54% Expand products or services52%53%46%55%56% Expand or increase office space, plant size, stores or other facilities 12%11%14%18%19% Outsource more functions now handled by in-house employees **12%16%17% Increase advertising30%37%46% 48% Make facilities more “green” and energy efficient 35%29%31%36%40% Increase spending on professional services such as legal, accounting, or other consulting fees 12%11%14%17%19% PLANNED BUSINESS INITIATIVES, INVESTMENTS AND PURCHASES DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 9 FINDINGS In terms of increasing investment and expanding purchasing, there was little change between the April 2010 survey and the November 2010 survey in most every category. The largest increases between April and November were upgrading computer technology (+5) and making facilities more “green” (+4). The largest decrease was taking a risk on a new idea (-6). In the next few months… * Indicates that the question was not asked in the survey.

11. IncreaseDecreaseStay the Same Corporate events such as meetings, holiday parties, entertainment, and annual conferences 15%16%69% Charitable contributions9% 77% DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 10 FINDINGS More than two-thirds of the region’s business executives expect event spending to stay the same over the next year while nearly equal percentages expect such spending either to increase or decrease. More than three- fourths of the region’s executives expect business charitable spending to stay the same over the next year while equal percentages expect such spending either to increase or decrease. Looking ahead to the next year… * Indicates that the question was not asked in the February 2009 and June 2009 surveys. CORPORATE EVENT SPENDING AND CHARITABLE CONTRIBUTIONS

12. Is it easier or harder to do business in the Greater Washington region than it is in most other places in the United States… GREATER WASHINGTON AS A PLACE TO DO BUSINESS DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 11 FINDINGS A strong majority of local business executives continue to believe that it is easier to do business in the Greater Washington Region than in other other places in the U.S. In fact, the percentage saying it’s easier to do business in the region compared to other places increased from 66% in April to 75% now. That is the largest change experienced since we have been doing this survey. Easier Harder Same Don’t Know APRIL 2010 66% 17% 15% 3% DECEMBER 2009 64% 19% 10% 7% JUNE 2009 68% 18% 7% 7% FEBRUARY 2009 71% 15% 7% 7%

13. STIMULUS PACKAGE IMPACT ON GREATER WASHINGTON ECONOMY DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS FINDINGS A solid majority of the region’s business executives continue to believe the stimulus has had a positive impact on the area’s economy. However, only 14% say the positive impact has been “big” –which is a little higher than it was last year. CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 12 Note: These questions were not asked in February 2009. June 2009 December 2009 April 2010 November 2010 Big positive impact 8% 13%14% Small positive impact 68%56%59%54% Total positive76%64%71%68% Small negative impact 4%8%5%10% Big negative impact 4%7%2%5% Total negative No impact 8% 15% 14% 7% 20% 15% 14%

14. CONGRESSIONAL ACTION TO IMPROVE THE NATION’S ECONOMY DATA PRESENTED AS A PERCENTAGE OF SURVEY RESPONDENTS FINDINGS To improve the national economy, local business people overwhelming support expanding business tax incentives to encourage investment and making new investments to rebuild the nation’s infrastructure. They also strongly support encouraging financial institutions to loosen up commercial lending. CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 13 To improve the national economy, do you think the next Congress should do any of the following… YesNo Make new investments to rebuild the nation's infrastructure 86%10% Cut capital gains taxes51%42% Pass a constitutional amendment to require a balanced federal budget 49%45% Encourage financial institutions to loosen up commercial lending 71%23% Encourage financial institutions to loosen up home mortgage lending 53%41% Expand business tax incentives to encourage new investment 89%7%

15. Washington, DC Maryland Counties - Anne Arundel County - Calvert County - Charles County - Frederick County - Howard County - Montgomery County - Prince George’s County - St. Mary’s County Virginia Counties - Arlington County - Fairfax County - Fauquier County - Loudoun County - Prince William County - Spotsylvania County - Stafford County - Alexandria, Falls Church, Fairfax CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 14 The sample for this survey (N=200) included business executives from the Greater Washington region: SPRING BUSINESS OUTLOOK Greater Washington Business Survey

16. Presented by Greater Washington Board of Trade The Greater Washington Board of Trade is the Greater Washington region’s premier business network and the only local business association representing all industry sectors. Founded in 1889, the Board of Trade enjoys a long history of helping its members’ businesses grow by providing content-rich programs, connecting business leaders and marketing Greater Washington’s economic opportunities. As Greater Washington’s regional business organization, the Board of Trade addresses business concerns that stretch across geographic boundaries, such as transportation, emergency preparedness, green as a competitive advantage and workforce issues. Website: www.BoardofTrade.org Survey Conducted by Clarus Research Group Clarus Research Group is a full-service and nonpartisan survey research firm based in Washington, D.C. Clarus provides a full range of polling and market research services to corporate, association, nonprofit, public affairs, and media clients. Clarus conducts opinion and market surveys, focus groups, dial sessions, branding studies and message development. It is headed by Dr. Ron Faucheux, who also teaches at the Public Policy Institute at Georgetown University. Website: www.ClarusRG.com Sponsored by Tatum Tatum is the only professional services firm focused on serving the Office of the CFO. Tatum provides operational expertise to more than 6000 clients, across all industries, representing a total asset base of over 400 billion dollars, through a network of 37 offices and 1000 professionals nationwide. Website: www.TatumLLC.com CONDUCTED BYPRESENTED BYSPONSORED BY PAGE 15 BUSINESS OUTLOOK SERIES: BUSINESS OUTLOOK 2011 SURVEY Greater Washington Region