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Thursday October 25

According to Edelman, in China the web overtakes overtakes tv as most trusted medium.

Edelman recently published their "Fifth Annual Edelman Stakeholder Study".  The bad news? It shows an average drop of 31 percent in trust ratings for the four institutions measured -- Media, NGOs, Business and Government.
The good news for all of us who are active in interactive & digital? "While trust in media as an institution overall has declined markedly, there has been a dramatic increase, of more than 150 percent, in the trust of web-based media. In fact, web-based media has overtaken television as the most trusted and believable media source of news and information in Mainland China. "Web-based media in its broadest definition is now firmly entrenched in China," says Mr. VanderMolen. "The government and business can no longer look to the web as an emerging channel used by a small percentage of the population. The web has gone mainstream and the access to information that it provides can only continue to grow in influence and impact."

TRUST IN CHINESE INSTITUTIONS DROPS NEARLY ONE-THIRD;
WEB OVERTAKES TELEVISION AS MOST TRUSTED, BELIEVED MEDIA CHANNEL

Fifth Annual Edelman Stakeholder Study Also Reveals Increased Focus on 'Management/Leadership' as Corporate Reputation Driver

Beijing -- September 12, 2007 -- An annual study of business stakeholders in Mainland China shows an average drop of 31 percent in trust ratings for the four institutions measured -- Media, NGOs,
Business and Government. Compared to the same study last year, trust in media dropped by 45 percent, followed by a 33-percent drop in trust in NGOs, a 32-percent drop for Business and a 27-percent drop for Government.

"The drop in institutional trust needs to be framed against the backdrop of increased access to information and increasing peer-to-peer dialogues enabled by web-based communication," according to Asia-Pacific Edelman President Alan VanderMolen. "As transparency and the democratization of information grow, it is natural to see an increase in skepticism. All institutions must now strongly consider how they engage with the stakeholders critical to their success on the issues of importance to those stakeholders. The bottom-line," adds Mr. VanderMolen, "is that institutions must get a lot better at answering the question: 'What's in it for you? '."

The China Edelman study released today and part of global public relations firm Edelman’s annual Asia Pacific Stakeholder Study conducted by Harris Interactive Inc., examines the opinions of 140
opinion leading business stakeholders in Beijing, Shanghai and Guangzhou. The study specifically measures trust as it relates to the feelings of each stakeholder to rate their belief in the likelihood that
each institution will do 'what is right'.

The Changing Media Landscape:
While trust in media as an institution overall has declined markedly, there has been a dramatic increase, of more than 150 percent, in the trust of web-based media. In fact, web-based media has overtaken television as the most trusted and believable media source of news and information in
Mainland China.

"Web-based media in its broadest definition is now firmly entrenched in China," says Mr. VanderMolen. "The government and business can no longer look to the web as an emerging channel used by a small percentage of the population. The web has gone mainstream and the access to information that it provides can only continue to grow in influence and impact."

Further underscoring that point, of the ten markets in the region in which Edelman conducts the study, Mainland Chinese respondents had the highest incidence of posting on blogs. Forty-eight percent of
Mainland Chinese opinion leaders surveyed said that had posted on a blog in the past 12 months. That compares to a regional average of 30 percent. Mr. VanderMolen adds, however, that while web-based media have now overtaken television and newspapers as the first source of trustworthy news and information in Mainland China, the other
channels have comparable trust levels. "Essentially, we see three media buckets with similar levels of trust and believability."

Responsibility for Corporate Leadership:
Media is not the only institution experiencing a rapid change in landscape. While trust in business has
declined steeply, there has been a corresponding increase in the importance of 'Management/Leadership' as a driver of corporate reputation.

"In this year's study, we've seen a near doubling of the importance in 'management/leadership' as a reputation driver," Mr. VanderMolen said. It is now the top reputation driver for business operating in Mainland China, followed by 'corporate culture' in a distant second position. "We believe as institutional trust declines, there is a greater emphasis placed upon individuals -- and their behavior -- within the institutions," Mr. VanderMolen added.

-- END --

About the Survey
This was Edelman’s fifth annual Asia Pacific Stakeholder Research study conducted in partnership with Harris Interactive Inc., one of the world’s leading research houses. The research objective was to understand which factors are most important to stakeholders when corporations build relationships with them. Within this, the research examined:
− Trust in Asia Pacific institutions and information sources
− The drivers of stakeholder opinions
− The drivers of responsible corporate behavior / Corporate Social Responsibility
The regional respondents represented six different stakeholder groups, including:
− Senior business executives: C-Suite executive decision makers
− Institutional investors
− Government officials: Mid-range officials or above, such as senior officers and senior executive officers
− Media: Senior Business Editors/Reporters/Journalists and Producers
− NGOs/trade associations: Managers or above working in institutions, charity organizations, industry associations and/or trade associations
− Up-scale consumers: Middle to upper class consumers with buying power; work in multi-national corporations and large corporations

About Edelman
Edelman is the world’s largest independent public relations firm, with 3,000 employees in 48 offices worldwide. The firm was named PRWeek’s Large Agency of the Year for 2006. Advertising Age named Edelman as one of ten marketing firms to watch in 2007 in its Best Agencies issue. Edelman was also named 2006 Large Agency of the Year and 2005 International Agency of the Year by The Holmes Group. A&R Edelman was formed following the acquisition of A&R Partners in May 2006. For more information, please visit www.edelman.com or www.edelmanapac.com

For information or to arrange an interview, please contact:
Sabrina Dorr
Edelman China
Tel: +86 10 6530.8590
Fax: +86 10 6530.8766
sabrina.dorr@edelman.com

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