NORWALK, CT, March 24, 2004 —Nearly half of senior corporate and institutional executives believe that facilities services will play a strategic role in achieving 2004 goals and 42 percent say that proper management of real estate and facilities has a direct impact on shareholder value, according to a groundbreaking research study conducted by EMCOR Group Inc., a Fortune 500 leader in mechanical and electrical construction and facilities services for a diverse range of businesses globally.

"Now more than ever, forward-looking businesses are seeking innovative strategies for boosting bottom line business performance, increasing value to shareholders, improving their overall productivity and quality of operations, and better utilizing existing assets," say Frank MacInnis, chairman & chief executive of EMCOR. "This first-of-its-kind study indicates that senior executives across a spectrum of industries are looking to facilities services to help meet those critical goals."

Conducted by Moskowitz/Jacobs Inc., an internationally recognized market research firm, the major research study included C-suite (CEO, president and CFO) and senior operational management executives (e.g. facilities, real estate) across a broad range of industries and from many of the largest companies and institutions in the U.S., Canada and the U.K. There were 450 respondents from industries that included financial services, healthcare, higher education, manufacturing, energy & utilities, hotels/hospitality, retail, manufacturing, pharmaceuticals and transportation, and construction/real estate. The research was quantitative and statistically significant at the 95 percent confidence level.

Notably, the results reveal that there are four key and distinct mindsets that drive facilities management decision-making: Big Risk & Reward, Success & Achievement, Results Driven & Personnel Fulfillment, and Preservation & Protection.

Among other significant findings of the survey:

• Energy was a major area of concern, with 87 percent of respondents indicating they have room to improve; 74 percent saying that they do not have a handle on controlling the cost, quality and reliability of the power delivered and consumed across their enterprise; 59 percent indicating that they feel they are not well positioned in-house to control energy and improve operational efficiency; and with 49 percent saying that they are seeking ways to optimize energy usage.

• Financial Services is a lead industry for facilities services outsourcing, based on the extent and degree of the different tasks and activities that they outsource; the study provided clear quantification of each of these various areas.

• Executives have high expectations and demands of a company they will allow into their businesses and as an integral partner; 82 percent say that financial stability is an important factor in their choice of a facilities services provider, and 78 percent say that reputation and track record are key.

• Facilities services outsourcing is a very high interest area, overall, in all industries, at all organization levels and in all mind-set segments, yet a full 50 percent of executives say that their real estate/facilities are not currently well managed.

• Senior management is becoming more involved in facilities services outsourcing decisions, with 91 percent being involved in all decisions of more than $1 million in annual outsourcing fees for facilities service; 37 percent are involved in every decision.

• Successful integration of facilities services outsourcing within an organization depends upon understanding drivers for each decision maker, which vary by industry, job position and motivator/mindset.

MacInnis concludes, “Our strategy is to increase the proportion of our revenues from multi-year facilities services relationships. The results from this study validate that the array of services EMCOR provides is, and will be, in demand as the facilities services market continues to evolve. Our diversity of services and markets that we serve make EMCOR uniquely positioned to fulfill the entire range of facilities and construction services required by our customers.”