WASHINGTON, DC-- February 13, 2002—William T. Archey, president and CEO of AeA, the nation’s largest high-tech industry group, today issues a strong statement opposing the introduction of legislation entitled "Ending Double Standards for Stock Options Act," sponsored by Senators Levin, McCain, Fitzgerald, and Durbin:

"The high-tech industry was the first in the US economy to distribute stock options to its entire workforce, from top executives down to entry-level positions. As it stands, stock options help employers attract and retain qualified workers by giving them a financial stake in the future of the company. Many companies would find the tax and accounting regime of the Levin-McCain bill so onerous that they would discontinue offering options to all but the most senior executives.

"The Levin-McCain bill is an attempt to fix something that ‘ain’t broke,’ resulting in added confusion for employees with stock options. The current rules governing accounting and tax treatment of stock options are transparent and consistent and require no added complications. The Levin-McCain bill would frustrate investors and impose unnecessary costs on broad-based employee stock option plans.

"The high-tech industry successfully defeated this bill in 1997. We will mount a similar effort this time as well."