During the 4th quarter of 2003, the ING GAZELLE INDEX™ increased slightly from 55.1 to 56.8. This was the third consecutive quarterly increase in the index value and the third consecutive quarter that the index value has been above 50. An index value of 50 or more means that CEO’s are more positive than negative in their current and future outlook.

The ING GAZELLE INDEX™ is a quarterly survey that measures the business confidence and expectations of 350 CEOs of the nation’s fastest growing African American-owned companies with 10 to 100 employees. It is a nationally representative survey with a margin of error of + or – 5%.

Even though the economy grew by 8.2% during the quarter, the growing economy did not translate into a significant improvement in the optimism of Gazelle business owners. The index value was dampened by the relatively bad employment situation. In looking back over the full year of 2003, 14.0% of Gazelle CEOs indicated that business activity in their company was significantly better than in 2002, 29.4% indicated that it was slightly better, 21.7% indicated that it was about the same and 34.6% indicated that it was worse than in 2002.

The outlook for employment among Gazelle CEOs continues to improve. The percent of Gazelle CEOs that anticipate increasing hiring three months down the road increased from 50.6% in the 3rd 2003 to 54.9% during the fourth quarter.

When Gazelle CEOs were asked to identify the best metropolitan areas for fast growing Black-owned businesses to locate, they identified Atlanta overwhelmingly. This was followed by Washington/Baltimore, Houston, Los Angeles, and New York City respectively as the best metropolitan locations. Similarly, Gazelle CEOs identified the most attractive states to expand or relocate their businesses as Georgia, Florida, California, Texas, and North Carolina.

Also included in the 4th quarter’s survey are responses to questions regarding the President’s management of the economy, the extent to which Gazelle CEOs are satisfied as business owners and the willingness of Gazelle CEOs to take their company public if given the opportunity. Sixty-eight and three-tenths percent (68.3%) feel that President Bush does not have the economy on the right track. This is down from 71% during the third quarter. Also, 59.7% of Gazelle CEOs would take their company public if they had the opportunity. Finally, 86.6% of CEOs indicated that they are more satisfied as business owners than they were when they worked for someone else.

African American businesses included in the survey have between 10 and 100 employees and have experienced the fastest rate of employment growth over the last five years. The average employment growth of Gazelles over the last five years is 212%.

The survey is part of ING’s ongoing effort to assist consumers, businesses, policymakers and the media to better understand the dynamics of one of the nation’s fastest growing business sectors. Quarterly results of the ING Gazelle Index are available electronically at www.inggazelleindex.com.