AeANET : Midwest Council September 2007 Monthly News

Fuel Tech, Inc., Midwest Member News, Chicago IT Procurement Forum, Grant Thornton's Dealing with Transition FASB 123(R), and more

The high-tech industry continues to evolve and seek innovative approaches to improve energy efficiency, productivity and environmentally friendly products, services and corporate programs. We are witnessing a new era of innovation with companies creating new alternative and renewable energy sources with advances in fuel cell technologies, wind, solar, and biofuel, and other key products that will improve energy independence and impact on the environment. Additionally, of the 100 Best Corporate Citizens for 2007, published by Corporate Responsibility Officer Magazine, thirteen of the top twenty listed companies are from the technology industry. As more and more companies and individuals focus on enhancing these efforts, their own corporate culture, and new and innovative technologies, AeA will also continue to expand our public policy priorities and initiatives to support the high-tech industry.

In addition to a variety of AeA member companies driving growth and recognition in the broad spectrum of technology (including AeA members featured in the August edition of Forbes), the Midwest is home to many companies and initiatives that deserve recognition. One such company developing and deploying advanced solutions to control pollution, reduce green house gases, and improve efficiency in the energy-related industry is Fuel Tech, Inc., based in Batavia, IL. We are pleased to welcome Fuel Tech, Inc. to AeA and encourage you to review more details below on this growing company. Stay tuned for more initiatives and information from AeA in this arena.

Thank you for your ongoing involvement in AeA, and as always, feel free to contact me with your thoughts and suggestions on how we can improve the level of service we provide to you, our members. Please also be sure to mark your calendars for our upcoming programs and committee meetings. I can always be reached at 630-613-7174, or by email, ed_longanecker@aeanet.org.

About Fuel Tech, Inc.

Fuel Tech is a fully integrated company providing a broad array of technologically advanced solutions to meet the pollution control, efficiency improvement, and operational optimization needs of energy-related facilities worldwide. Our unique problem-solving approaches enable customers to produce energy and processed materials in a cost-effective and environmentally sustainable manner.

The Company�s nitrogen oxide (NOx) reduction technologies include the NOxOUT�, NOxOUT CASCADE�, NOxOUT ULTRA�, Rich Reagent Injection (RRI) and NOxOUT-SCR� processes. These technologies have established Fuel Tech as a leader in post-combustion NOx control systems, with installations on over 450 units worldwide.

The Company�s FUEL CHEM� technology platform, including the TIFI� Targeted In-Furnace Injection� process, revolves around the unique application of specialty chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity, acid plume and loss on ignition (LOI), as well as the formation of sulfur trioxide (SO3), ammonium bisulfate (ABS), particulate matter (PM2.5), carbon dioxide (CO2) and NOx. This technology, in the form of a customizable FUEL CHEM program, is being applied to over 60 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

Many of Fuel Tech�s products and services rely heavily on the Company�s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. These capabilities, coupled with the Company�s innovative technologies and multi-disciplined team approach, enable Fuel Tech to provide practical solutions to some of our customers� most challenging problems.

As a key participant in the air pollution control and fuel treatment chemicals industries, Fuel Tech is a member of the following organizations: The Institute of Clean Air Companies (ICAC); Council of Industrial Boiler Owners (CIBO); American Coal Council (ACC); PRB Coal Users� Group; and AeA (American Electronics Association).

Incorporated in 1987, Fuel Tech has over 100 employees, of which approximately 20% hold advanced degrees. The Company maintains domestic offices in Batavia, Illinois, site of its Corporate Headquarters, and in Stamford, Connecticut. International offices are located in China and Italy. Fuel Tech�s Common Shares are listed on The NASDAQ Stock Market, Inc. under the symbol �FTEK.�

AeA Member News & Announcements:

Upcoming AeA & Supported Events:

AeA/Stanford Executive Institute Graduates Nearly 100 Senior Technology Leaders

From August 12 - 23, 96 senior leaders from technology companies around the world participated in the 2007 AeA/Stanford Executive Institute. This intensive eleven-day executive management course on the Stanford University campus has been held annually since 1975 and provides a rare opportunity to step back and assess critical business challenges, learn new perspectives, and apply successful strategies to running globally competitive technology businesses.

In partnership with Stanford's School of Engineering and Graduate School of Business, the Institute has developed the careers of over 3,400 high-tech executives. Attendees at the 2007 program took every opportunity to explore leadership, business management and strategy with the Institute's elite faculty, CEO speakers, and accomplished participants. Together executives learned valuable lessons in corporate stewardship, while discussing 19 high-tech business cases and leading books. Curriculum addressed technology market strategy, accounting, finance, innovation, negotiation, strategic management, operations, and culture.

In addition to University faculty, speakers included CEOs, Board Chairmen, VCs, and political leaders, such as:

Timothy E. Guertin, President and CEO of Varian Medical Systems and current AeA Chairman of the Board, who shared what qualities and traits he looks for in senior leaders and high potential employees. He also discussed what business knowledge and skills helped facilitate his own rise through several key management positions during his 31-year Varian Medical Systems tenure.
Eric Benhamou, the Chairman of the Board of Directors of 3Com Corporation and Palm, Inc. and co-founder of Bridge Communications and Benhamou Global Ventures, shared his experiences as a CEO and leading his company through a merger, to his transition into private investing and the active role he plays as a mentor to innovative high tech companies.
Bill Archey, President and CEO of AeA, highlighted tech's historical involvement in legislative and government initiatives. He shared updates on competitiveness, net neutrality, SOX, and intellectual property issues impacting the industry.
Senator Jackie Speier (D-CA) and Jan Yanehiro, Co-Authors of This is Not the Life I Ordered, addressed over 100 women in technology at the Tech Women in Leadership Brunch offered in partnership with Stanford University and the Alliance of Technology and Women.

And at the Institute, Deepak Chopra, Founder and Chief Executive Officer of OSI Systems, was honored by AeA and Stanford University with the 2007 Alumnus Award for Outstanding Achievement. Mr. Chopra attended the Institute in 1981.

For more information about the Institute or to register for next year visit www.aeanet.org/stanford or contact Jeannine Seremi-Banayat at 408.987.4276.

Eric Benhamou	Tim Guertin	Bill Archey

Senator Jackie Speier

Jan Yanehiro

Sincerely,

Elaine Sanders
Senior Vice President
Financial Conferences, Executive Education, and Affinity Programs
AeA

U.S. and China Approaches to Innovation and Competitiveness Policies

On August 2, AeA hosted a program in the David Packard Conference Center for over 50 participants from industry and government that analyzed the policy approaches taken by the U.S. and China towards promoting innovation and competitiveness. Both countries are confronting the same challenge to be competitive in the rapidly changing global economic environment and see innovation leadership as a critical factor in their efforts, but they are coming from very different starting points.

William T. Archey, AeA President and CEO, kicked off the program with a discussion of AeA�s efforts over the last three years to alert U.S. policymakers to the need for policy changes in the areas of math and science education, research, and highly-skilled foreign workers if the U.S. wants to maintain its global competitive leadership. He noted that China has taken lessons from the U.S. policy approach after Sputnik, and is devoting substantial resources to development in key technology sectors, funding of research, and increasing the number of engineers. Fortunately, the Congress finally responded to AeA�s efforts with the passage of the 21st Century Competitiveness Act just before leaving for its August recess. The Act provides incentives for American children to take math and science, training for teaching of math and science, and increased budgets for basic R&D.

Greg Shea, President and Managing Director of the US Information Technology Office in Beijing (USITO), expanded on the Chinese policy approach which includes a 15-year plan, Guidelines on National Medium and Long-Term Program for Science and Technology (2006-2020). The plan seeks to have, by 2020, over 2.5 percent of GDP invested in R&D, reliance on foreign technology below 30 percent, and to be among the top five countries with worldwide patents. They target eight industries as priority areas for development and innovation. Despite this strategic targeting of resources, China�s ability to innovate will be hampered by its lack of intellectual property protection and the resistance to working with global standards. To discourage the focus on indigenous innovation that could exclude U.S. high-tech companies, USITO has been arguing the importance of the innovation ecosystem that requires a complete set of policies designed to foster innovation.

The second panel of the program included presentations by Rich Brecher, Director Global Advocacy for Motorola; Greg Slater, Director Trade Policy for Intel; Chris Moore, Deputy Assistant Secretary for Trade Policy and Programs at the U.S. Department of State; and Richard Johnson, Senior Partner at the law firm of Arnold and Porter. The industry representatives agreed that, in essence, they would like to see the U.S. government do more to support innovation and competitiveness of U.S. companies while the Chinese government should do less regulating that negatively impacts foreign companies. Through the U.S. � China Strategic Economic Dialogue (SED), both countries have agreed to principles for an innovation dialogue going forward. As part of this dialogue they agreed to hold an Innovation Conference in Beijing around the time of the next SED meeting in December. Finally, Rick Johnson outlined the work of the OECD in assessing China�s approach to innovation.

The program highlighted the importance of these policies in the U.S. and China to the U.S. high-tech companies that are playing a central role in the economic development of both countries. AeA continues to be active on both fronts seeking more support from the U.S. government while coordinating with USITO in trying to steer the Chinese government away from interventions that would hinder the business of our member companies.

Rob Mulligan (bio)
Senior Vice President, International

William T. Archey, President & CEO, AeA

Greg Shea, President & Managing Director, USITO

For more information on the International Issues affecting your company, visit:

Competitiveness Legislation Signed Into Law...AeA Plan Moving Forward

The passage of the America Competes Act represents a positive step forward and a major accomplishment for AeA. As stated in the op-ed co-authored by Craig Barrett, Chairman, Intel, and William T. Archey, President & CEO, AeA, and printed in the August 19 San Jose Mercury News it is among the most important bills passed in years for the high-tech industry. However, AeA is now working to ensure that this is not the end of the line of the Competitiveness agenda on the Hill, but rather just an important first step. AeA�s focus come the fall, when Congress returns from Summer Recess, is to push forward on the Competitiveness agenda.

Among its many beneficial provisions for the high-tech industry, the America Competes Act contains two major provisions. The first is the call for the doubling for research programs at the National Science Foundation (NSF), the National Institute of Standards and Technology (NIST), and the Department of Energy (DOE) Office of Science. The second is the authorization of a total of $43.3 billion over the fiscal years for 2008-2010 for science, technology, engineering, and mathematics research and education programs across the federal government. The next step for AeA is to push Congress to ensure full funding for these two important elements and other provisions in the Competitiveness Agenda that will benefit the high-tech industry.

While AeA is pushing for full funding, it is also working on other elements of the Competitiveness agenda. The bulk of AeA�s efforts will be focused on High-Skilled Visa reform. Using the momentum of our grassroots efforts created by the hard work of AeA staff across the country and the executives of our participating member companies, AeA will continue to educate, preach, and demand High-Skilled Visa reform.

If you would like to get involved to volunteer and tell your company's story, please contact your local council executive director, Alan Vazquez, Manager/Counsel, Domestic Policy, at 202.682.4439, or John Palafoutas, Senior Vice President for Domestic Policy & Congressional Affairs.

John Palafoutas (bio)
Senior Vice President for Domestic Policy & Congressional Affairs

Child Online Safety Group Formed to Promote Legislation and Create a Safer Internet Experience

AeA has recently launched its Child Online Safety group. This group is dedicated to promoting legislation that promotes a safer Internet experience for children, while ensuring that state legislation is technology neutral. Recently, AeA has rolled out its online safety webpage to provide examples of the dangers on the Internet, useful tips on how to protect yourself and loved ones, and links to informative websites for further information on Internet Safety.

Online safety is just one issue AeA is tracking throughout the states. Come the fall, AeA will continue to monitor legislation impacting RFID, E-Waste, and E-Commerce in the handful of states that have not finished their legislative calendar for the year.

For more information on activity across the states or to get involved with AeA's State Government Affairs contact Ben Aderson, Manager/Counsel, State Government Affairs and Technology Policy, at 202.682.4428 or Alan Vazquez, Manager/Counsel Domestic Policy, at 202.682.4439.

Ben Aderson (bio)
Manager/Counsel, State Government Affairs and Technology Policy

AeA Members Save 10% on Registration

AeA is proud to be an association sponsor for RFID World: Boston, which will focus on the issues of security, privacy and authentication. This educational business and technology conference delivers the practical answers and realistic information about the issues affecting the growth of RFID in the months and years ahead.

Companies will gather together to discover and improve solutions that will either protect their brand, curtail counterfeiting, protect consumers, or comply with ePedigree regulations.

At the conference AeA's Ben Aderson will present a keynote address on, "How Government Policy Affects RFID: The Good, The Bad, and The Bizarre." While some policymakers and consumers are well-informed about the benefits of RFID, many misunderstand how the technology can be used. Legislation has been introduced that restricts government procurement, forces products with an RFID tag to be labeled, and bans RFID tags altogether. The consequences of poor policy can be devastating to the industry and impede product sales. This session will address how industry can help policymakers and consumers better understand RFID in order to prevent harmful regulation and take advantage of government's interest in using the technology.

Learn more or register today using promotional code "aea07" to receive your discount!

AeA�s Government and Commercial Market Group Launches a
Marketing for Business Steering Committee

On Wednesday, August 15, AeA's Government and Commercial Markets Group (GCMG) launched the Marketing for Business Steering Committee. Senior marketing, sales and business development professionals from 11 industry leading companies gathered together in Washington, DC, to discuss their 2008 priorities, collaborate together on GCMG's 2008 strategy and discuss ways that AeA members can leverage the association's resources most effectively to help support their business development efforts.

The purpose of this committee is to give AeA members the opportunity to guide the programs, events, strategy, and partners that the association develops to help all AeA members win more business and offer exclusive opportunities to network with key prospects, clients, and partners.

Q- Which companies should participate?
A- Any member company (small, medium and enterprise) interested in growing their private and public sector business.
Q- Who should participate?
A- Senior marketing and business development executives.
Q- How often does the committee meet?
A- Once each quarter for lunch. The next scheduled dates are: November 14, 2007, February 12, 2008, and July 9, 2008.

AeA's Marketing 4 Business Steering Committee is comprised of the following members:

For additional information or to get involved, please contact Goldy Kamali, Director, Federal Government Market Group at (202) 682-4432 or visit the GCMG's committee webpage.

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AeAHealth! and UnitedHealthcare�s Tip of the Month:
Coping with Everyday Stress

Sources of stress are everywhere and, if not dealt with effectively, could lead to decreasing levels of productivity by you or your employees. UnitedHealthcare understands this and as part of the AeAHealth! Insurance Program offers member companies access to the Care24 program.

Care24 is available 24 hours a day, 365 days a year, and allows you to speak directly with experienced registered nurses, master's level counselors, attorneys, financial advisors, management consultants and trainers about your stress. In addition to access to experts via the telephone, Care24 delivers AeA Members opportunities to attend training and wellness seminars and consultations on personal legal and financial concerns; critical stress management; decision support for minor emergencies; information on diagnostic procedures and treatments; and more. Care24 is also available in more than 140 languages for non-English speakers and their families.

For more information about AeAHealth! and its offerings�such as Care24�that are provided by UnitedHealthcare, please contact Tiffany Barrett at 202.682.4459 or tiffany_barrett@aeanet.org.

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November 4-7, 2007 - Monterey, California

Featuring up to 200 Publicly Traded High-Tech Companies

Join us November 4-7 at the Monterey Conference Center for the 37th annual AeA Classic Financial Conference. Showcasing presentations from up to 200 publicly traded AeA member companies with a market cap or revenues of $100 million to $4 billion. Presenting companies will have an opportunity to gain visibility and develop business contacts with 600+ investors.

Access executives from 200 companies and 600+ investors in one location

Leverage the small group break out sessions to exchange information and identify new business opportunities

Network with fellow executives and the investment community in a casual setting

To register, visit www.aeanet.org/Classic or call AeA's Financial Conferences Team at 408.987.4236.

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High-Tech Industry Specific Salary Data At Your Fingertips

In today's market, it is critical to know if you are over or under compensating your employees so