TIA

For Immediate Release
August 4 , 2006

                         

Arlington, Va. -- The Electronic Industries Alliance (EIA) and the Telecommunications Industry Association (TIA) expressed disappointment this morning over the fact that Congress was unable to agree on legislation to seamlessly extend and enhance the research and development (R&D) tax credit before leaving for the August recess. The credit, used by thousands of companies in high- growth sectors of the U.S. economy, expired at the end of 2005.

"We want to thank the many members of Congress, on both sides of the aisle, who have been strong champions of this critical research and development tax incentive," said EIA President & CEO Dave McCurdy and TIA President Matt Flanigan. "We know that the votes taken over the past week in the House and Senate did not reflect a lack of support for the credit, but it is nonetheless extremely disappointing to see another Congressional deadline pass without a bill sent to the President.

"By the beginning of September, when Congress returns, companies will have languished for more than eight months in an uncertain situation as they try to plan for future research projects and investment. This is not the way to foster innovation in this country. This is not the way to create high-skilled, high-paid jobs in this country. This is not the way to foster a competitive business landscape in this country.

"We hope that Congress will find a way to enhance and seamlessly extend the credit for as long as possible as soon as they return in September. We look forward to working in any way we can with the Members who have supported this provision for so long."

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About EIA: The Electronic Industries Alliance (EIA) is the leading advocate in Washington, D.C., for the U.S. high-tech industry. The Alliance, which traces its origins to the Radio Manufacturers Association (chartered in 1924), is a partnership of electronic and high-tech associations and companies whose mission is to promote the market development and competitiveness of the $400 billion U.S. high- tech and electronics industries through domestic and international policy efforts. EIA's corporate members - nearly 1,300 - provide products and services ranging from microscopic electronic components to state-of- the-art defense, space and industry high-tech systems, as well as the full range of telecommunications and consumer electronics products. Headquartered in Arlington, Va., the Alliance is made up of the Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics & Information Technology Association (GEIA); JEDEC; the Telecommunications Industry Association (TIA); and leading consumer electronics companies who participate in EIA's Environmental Issues Council. EIA is also heavily involved in cyber security issues through the Internet Security Alliance (ISAlliance), and education issues, through the National Science & Technology Education Partnership (NSTEP). For more information go to www.eia.org.

About TIA: The Telecommunications Industry Association is the leading trade association for the information and communications technology (ICT) industry. As owner and producer of GLOBALCOMM™, TIA serves ICT suppliers to global markets through its leadership in standards development, domestic and international policy advocacy, and facilitating member business opportunities. TIA represents the communications sector of the Electronic Industries Alliance (EIA). Visit us at http://www.tiaonline.org. GLOBALCOMM™ is a trademark of the Telecommunications Industry Association (TIA). The Next-Generation Communications Marketplace and Summit will take place June 18-21, 2007, at McCormick Place in Chicago, Illinois, USA. Visit www.globalcomm2007.com.

P.A. Release: 06-jointprEIA2/08.04.06