AeANET : AeA Monthly News, July 2007

AeA Board Lobbies U.S. Congress; Upgraded Conference Center Opens for Business; and My Retirement Plans

The AeA Board of Directors visited Washington, DC, on June 5 - 7. AeA�s Board is made up of executives from the nearly 2,500 small, medium, and large member companies that span the entire industry from semiconductors to software. The Board meets three times a year and comes to Capitol Hill every summer to advocate for issues of importance to the high-tech industry with Members of Congress.

The issues discussed this year included:

U.S. Competitiveness / Education;
High Skilled Immigration / Visa Reform;
The President�s Trade Promotion Authority; and
The proposed Free Trade Agreements with Colombia, Panama, Peru, and South Korea.

The week kicked off with the Board hosting the sold-out �Annual AeA Technology 4 Government Dinner� on the evening of June 5. The dinner and reception is the premier Washington, DC, technology networking event that brought together over 600 leaders from the tech community with CIOs and contracting officials from the federal government, Administration, foreign dignitaries, and Members of Congress. The energy in the room was electric with a prominent Northern Virginia technology company executive telling me that the event has become, "DC's must attend event." The dinner also provides small businesses with a great opportunity to make contacts with senior government procurement officials.

The keynote for the dinner was provided by Mr. Jonathan Schwartz, President & CEO, Sun Microsystems, Inc, who spoke on the empowering paradigm shifts taking place through Internet technologies that award the user greater freedoms and access; and how this affects the operation of both government agencies and for-profit businesses. You can watch his speech online below.

The next morning, the Board separated into seven lobbying teams to meet with over 30 U.S. Senators and Representatives at their Capitol Hill offices. Additionally, the Board was addressed by:

Rep. George Miller (D-CA), Chairman, House Committee and Education and the Workforce and Chairman, House Democratic Policy Committee;
Rep. Zoe Lofgren (D-CA), Chairwoman, House Subcommittee on Immigration;
Rep. Bart Gordon (D-TN), Chairman, House Committee on Science and Technology;
Rep. Roy Blunt (R-MO), House Minority Whip;
Rep. Anna Eshoo (D-CA); and
Rep. Cliff Stearns (R-FL).

Many of these high-ranking Congressional Leaders were highly complimentary of the work of AeA; specifically the analysis the association offers on key issues. While on "The Hill" the Board of Directors also sat in the Senate Gallery and witnessed the Senatorial debates on immigration.

Following the annual lobby day, the Board came to AeA�s newly remodeled and upgraded David Packard Conference Center (DPCC) for the board meeting. Tim Guertin, President & CEO, Varian Medical Systems, and the 2007 Chairman of the Board, presided over the meeting. Guest speakers included Dan Goelzer, Member, Public Company Accounting Oversight Board (PCAOB), who discussed changes in the compliance guidance for Sarbanes-Oxley Section 404; and Ambassador Alan F. Holmer, Special Envoy to the China Business Dialogue. Ambassador Holmer was appointed by Treasury Secretary Henry Paulson on February 13, 2007, to oversee this dialogue that acts as the central vehicle for economic talks between the U.S. and China. AeA welcomes our new board members and congratulates Deidre Hanford, of Synopsys, for being elected the Vice-Chairperson of the Board.

Now that the upgrades are complete, the DPCC is once again available for all AeA members to use for your meetings, product launches, and presentations. Thanks to a generous grant from the David & Lucille Packard Foundation, AeA has upgraded the technology in the conferencing center to include a state-of-the-art audio and video conferencing system. We will also soon be kicking off a Technology 101 education series hosted in the DPCC that will deconstruct the complexities of technologies -- such as RFID and VoIP -- into laymen's terms for policy makers and the public. These live and on-demand webcasts will continue the success of our written Competitiveness Series four-page reports. For more info on the DPCC or for booking contact dpcc@aeanet.org.

And at the Board Meeting, I formally announced my plans to retire in February 2008. By that time, I will have been the CEO of AeA for over 13 years. I had let the Executive Committee of the Board know of my intentions in the spring of 2006 to retire around the time of my 65th birthday. It has been a genuine pleasure and privilege to have represented the American high-tech industry for these years, but I also believe that it is time for fresh talent and fresh ideas to deal with the challenges facing the industry for the next decade.

In addition to the privilege of representing the industry, I must thank the thousands of members that I have worked with over the years. We have together seen the industry climb through the 90s, survived the dot-com bubble bursting, and now as AeA's Cyberstates 2007 report shows a weathering of the storm as we have a continuing positive trend of increased employment in the industry. And with traction being seen in the 110th Congress on Competitiveness legislation, I am confident that if passed and fully funded we, as an industry, can continue to lead the economy in creating the jobs of the future.

Sincerely,

William T. Archey
President & CEO
AeA

AeA Chairman Tim Guertin, President & CEO, Varian Medical Systems, Rep. Anna Eshoo (D-CA),
and William T. Archey, President & CEO, AeA at the Board Reception on June 6 in the U.S. Congress (L-R)

Ambassador Alan Holmer Speaks to the AeA Board in the David Packard Conference Center	Sue Dark, President DeepNines, AeA Chairman Tim Guertin, President & CEO, Varian Medical Systems, & Dan Goelzer, PCAOB, (L-R)

Rep. George Miller (D-CA) and John Palafoutas, AeA, at the Board Breakfast Reception (L-R)	Senator Gordon Smith (R-OR), Jennifer Bosze, AeA Oregon, and Robert DeKoning, CEO, Routeware (L-R)

David Henshall, CFO, Citrix Systems, and Senator Bill Nelson (D-FL) at the Board Lobby Visits (L-R)	AeA staff and Board Members outside of the U.S. Capitol on the Lobby Day

Tim Guertin and Rep. Zoe Lofgren (D-CA), Chair, House Subcommittee on Immigration (L-R)	Rep. Roy Blunt (R-MO), House Minority Whip, Speaks at the Board Reception

Rep. Bart Gordon (D-TN), Chairman, House Science & Technology Committee Addresses the Board (Watch Rep. Gordon's speech)	Rep. Cliff Stearns (R-FL), Addresses the Board Luncheon (Watch Rep. Stearn's speech)

AeA Board Lobbies for Congressional Action on International Trade Issues

The AeA Board of Directors met in Washington, DC, on June 6 to lobby Members of Congress and their staff on issues of importance to the tech industry. The issues of particular international importance that the Board advocated for were support for the Congressional approval of the Free Trade Agreements (FTA) with Peru, Panama, Colombia, and South Korea; and the renewal of Trade Promotion Authority (TPA), which requires Congress to vote for or against trade agreements negotiated by the President without seeking any amendments.

While AeA hoped that Congress would move on the FTAs after the Administration and Congress reached a bipartisan trade deal in May that covered labor and environmental provisions, progress was slow on developing consensus text for the agreements. It is anticipated that Congress will act first on the Peru FTA (possibly in July) and Panama in the fall with minimal opposition. In contrast, Colombia is still facing opposition by many Democrats because of problems in the country with anti-labor union violence. AeA is working with the Latin America Coalition in support of all three agreements and has issued a paper highlighting the growing U.S. tech exports to Peru, Panama, and Colombia as well as the importance of the whole region to the U.S. high-tech industry.

The FTA with South Korea is also facing obstacles that could delay or prevent it from passing. Although this agreement may be one of the most significant agreements the U.S. has ever signed, many Members of Congress believe the provisions related to autos are inadequate. Others will not approve the FTA until Korea clears all barriers to U.S. beef exports. The Korea FTA is good for the high-tech industry on many fronts and AeA is working with the Korea Free Trade Coalition to garner Congressional support. AeA has issued a report on U.S. high-tech exports to Korea, which reached $10.6 billion in 2006, emphasizing the importance of the FTA to our members� continued global competitiveness.

The current Trade Promotion Authority (TPA) is scheduled to expire on June 30, 2007. Leading Democrats are indicating that they will not renew TPA, however, renewed authority would be needed to complete the WTO Doha negotiations that have been underway for six years. If the current Doha deadlock can be broken, Congress might consider a renewal of TPA limited to a Doha Agreement. Open global markets are critical to the U.S. high-tech industry but without TPA the U.S. would not be able to negotiate any new trade agreements while the EU and others are aggressively pursuing new deals. AeA pressed Members of Congress to support TPA renewal and we are serving on the Steering Committee of Trade for America, a business coalition in support of renewing TPA.

AeA will continue to meet with Members of the Congress and their staff to ensure that these trade agreements pass and that the Trade Promotion Authority is renewed. As part of our lobbying effort we also will mobilize grassroots support through our local offices and by reaching out to member companies. If you would like to support AeA�s efforts or receive more information about AeA trade policy activities, please contact Rob Mulligan, Sr. Vice President, International, or to read AeA's latest Competitiveness Series reports on the FTAs visit www.aeanet.org/cs.

Rob Mulligan (bio)
Senior Vice President, International

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

Washington Post Features AeA President�s Career

William T. Archey and AeA were prominently profiled in the Washington Post politics section "On K Street" on June 26 in an article by syndicated columnist Jeffrey Birnbaum. The article extolled the roll that AeA has played in DC as an unbiased nonpartisan source of trusted information, analysis, and industry leadership on "hot issues," which has garnered it great access and respect throughout Congress. "Data-starved congressional aides from both parties have long relied on AeA's four-page summaries to learn the basics about arcane yet important topics such as free-trade agreements and tiered Internet pricing proposals," says Birnbaum.

The article continues by stating how Archey is convinced that, "a lot of the perceived wisdom about Washington -- including the need to pick a partisan side and stick with it -- is simply wrong" and the equally exaggerated idea that the only way to achieve lobbying victories in DC is by giving campaign donations. AeA does not maintain a federal political action committee and "does not donate a penny to anyone."

Under Archey�s leadership, AeA has contended that, "the best policy comes when you have to make some compromises," and issues "ultimately do get decided by the center." For the last several years AeA has conducted an aggressive national advocacy campaign in support of a U.S. Competitiveness agenda, voicing strong support for the House Democratic Innovation Agenda and the President Bush�s American Competitiveness Initiative. AeA was also the co-chair of the Republican's Competitiveness Summit at the U.S. Department of Commerce here in Washington, DC.

Bill Archey will be retiring in early 2008, around the time of his 65th birthday, after twelve eventful years for AeA and the high-tech industry. In October, the AeA Board of Directors will be honoring his contributions to the industry by awarding him the 2007 AeA Medal of Achievement Award in San Jose, CA. For more information about this award luncheon, please contact Betty Baker at 408.987.4265.

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

Record Attendance at AeA's State Policy Action Network (SPAN) Conference in DC

State Government Affairs professionals from around the country visited Washington, DC, on June 4-5 for the semi-annual State Policy Action Network (SPAN) Conference. More than 75 people attended the program at AeA's headquarters in the newly remodeled and upgraded David Packard Conference Center (DPCC) to share the latest news from state legislative sessions and to strategize for the future.

SPAN Chairperson Kristine Berman, Director, Regional Government Affairs, HP, and Ben Aderson, Manager, AeA State Government Affairs, moderated the public policy discussions, which focused on:

E-commerce;
Environment;
Health IT;

RFID;
State Legislation Affecting Trade; and
Telecommunications.

Fred Humphries, Senior Director, State Government Affairs, Microsoft, gave a presentation on "How to Sell Government Affairs within Your Company" and Chris Badgley of PHARMA discussed "Best Practices." Other companies in attendance included Agilent, AOL, Apple, Applied Materials, eBay, Experian, Google, Infineon, Intel, Motorola, NXP, Philips, RIM, Symantec, Yahoo! and many more.

For more information on the program visit www.aeanet.org/SPAN 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.

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

The Premier Washington, DC Technology Networking Event

On June 5, AeA�s Board of Directors hosted over 600 senior leaders from the private sector and government at the Annual AeA Technology 4 Government Dinner. Jonathan Schwartz, President & CEO, Sun Microsystems, Inc, delivered the keynote address at this event to a unique audience of government CIOs, senior contracting officials, technology company executives, foreign dignitaries, Members of Congress, senior congressional staff members, and leaders from the Administration. Mr. Schwartz's keynote can be viewed online below.

AeA would like to once again thank the 100+ government guests that attended this event and the thousands more that work tirelessly to advance the business of technology within their agencies and departments. This year�s guests included Mike Wynne, Secretary, Dept. of the Air Force; Scott Charbo, CIO, Dept. of Homeland Security; David Drabkin, CIO, GSA; Vance Hitch, CIO, Dept. of Justice; Bob Howard, CIO, Dept. of Veterans Affairs; Dr. Robert Kolodner, National Director, E-Health, Dept. of Health & Human Services; Mark Krzysko, Deputy Director, Electronic Business, Dept. of Defense; and Dan Mintz, CIO, Dept. of Transportation.

AeA would also like to thank all of our sponsors for this event for their commitment to the association. For more information on this event visit www.aeanet.org/T4G2007 or for other opportunities with AeA's Government Market Group please contact Goldy Kamali at 202.682.4432.

Mrs. and Mr. Mike Wynne, Secretary, Airforce; and Mark Krzysko, U.S. Dept. of Defense (L-R)

600+ Attend the Annual AeA
Technology 4 Government Dinner

Dan Mintz, CIO, U.S. Dept. of Transportation & Gerald Wilkins, Cisco (L-R)

Participate Today To Access Your FREE Annual Subscription

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Your company's participation in the AeA Salary Survey is critical to maintaining dynamic reports for you and your industry peers. All data submissions are kept strictly confidential.

For more information, visit http://survey.aeanet.org. Or, contact AeA's Survey Support at SurveyInfo@aeanet.org or 1.800.542.9078.

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Apply by June 29th
To be Considered in the First Round of Application Reviews

October 15-16, 2007
Newport Beach, California

The AeA Technology Capital Conference for privately held high-tech companies provides an ideal setting to develop and maintain strategic relationships with investors interested in high-tech companies. The event will include presentations from up to 25 companies with $5-$75 million in revenues and educational workshops led by industry experts.

Showcase your company to a diverse group of investment professionals

Network and exchange information with fellow executives and investors

Learn from industry experts during the workshops and keynote speakers

Contact Tina Morais at 408.987.4234 or visit www.aeanet.org/CapitalConference for more information.

November 4-7, 2007 - Monterey, California

Featuring up to 200 Publicly Traded AeA Member Companies

Join us at the 37th annual AeA Classic, taking place at the Monterey Conference Center, November 4-7, 2007. Showcasing presentations from 200 public AeA member companies with a market cap or revenues of $100 million to $4 billion, companies will have an opportunity to gain visibility and develop business contacts with 600+ investors.

Access to 600+ investors and executives from 200 companies 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

Presenting company invitations will arrive in early June. To register or for more information, visit www.aeanet.org/Classic or call AeA's Financial Conferences Team at 408.987.4236.

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China and the United States - The Links Grow Stronger
Leading Destinations for U.S. High-Tech Goods Exports
2006 (in billions of current U.S. dollars)

Source: U.S. Census Bureau

Between 2000 and 2006, U.S. tech exports to China more than tripled, from $4.6 billion to $14.1 billion.
Only the United States� two NAFTA partners, Canada and Mexico, are larger export destinations for American tech products than China.
Between 2000 and 2006, U.S. tech imports from China nearly quadrupled, from $26 billion to $102 billion.
Total U.S. direct investment in China was $16.9 billion in 2005, a 12 percent increase over 2004.
China needs to act fairly and responsibly in its trade policies, including fair exchange rate policies, respect for intellectual property rights, complete WTO compliance, and other factors that currently strain the economic relationship between China and the United States.
Public policy in both the United States and China must recognize the interdependent nature of our economies and avoid protectionism and distorting trade practices. Such policies restrain trade, damage economies, and raise prices for consumers.

This is a natural sequel to last month's report on China entitled: China's 15 Year