Release #666-97

Contact:

Governor's Press Office: 518-474-8418	Mayor's Press Office: 212-788-2958
ESDC: Caroline Quartararo 212-803-3740	EDC: Bernadette O'Leary 212-312-3523

Mayor Rudolph W. Giuliani and Governor George E. Pataki announced today that Reuters American Holdings Inc. will remain in New York City for at least the next 23 years, retaining 1,800 jobs and creating over 2,300 new jobs. In addition, Reuters will occupy a new office tower developed by the Rudin Organization at 3 Times Square.

The Mayor was joined by Reuters Chairman and CEO Michael O. Sanderson, Rudin Management Company President Bill Rudin and Co-Chair Jack Rudin, Prudential Managing Director Brian Murphy, and Deputy Mayor Randy Levine for the announcement made at MTV's new Broadway studio overlooking Times Square.

"I'm thrilled to be here today to announce an agreement with Reuters American Holdings, Inc. -- one of the world's leading news and financial services companies -- to build its new North American headquarters right here in Times Square," said Mayor Giuliani. "This is great news, both for Reuters and for New York. For the City, it means we'll keep 1,800 jobs, and see a projected 2,348 new jobs created over the next 23 years. We've now retained 35 major companies and their 79,700 jobs that could have left the City. These companies are expected to produce over 40,000 new jobs as they stay and grow in New York City and also generate approximately $1.38 billion a year in total tax revenue for the City.

"This new office tower will be a landmark in the heart of a district that has landmarks on every corner," the Mayor continued. "It will be 32 stories high, overlooking all the energy and excitement of the new, clean, family-friendly Times Square. Right now we're standing in one of those other new landmarks -- the impressive new MTV studio. It's also another one of the developments that confirms New York City's status as the media and information capital of the world."

Governor Pataki said, "What tremendous news for New York. This has always been the media capital of the world and Times Square, now with Reuters on one side of the street and Condé Nast on the other, will be the centerpiece of the capital. I congratulate Michael Sanderson, Chairman and CEO of Reuters, for making the decision to remain and grow in New York. Like McGraw Hill, Price Waterhouse and Interstate Bakeries in Queens, Reuters had to make a business decision and could have gone anywhere. When all the pluses -- an unparalleled work force, the most exciting City in the world, and common sense government -- were weighed in the balance, New York came out on top."

Michael O. Sanderson, Chairman and Chief Executive Officer of Reuters America Holdings Inc. said, "We are determined to substantially grow our business in America. This new U.S. headquarters, to be called The Reuters Building, makes a bold statement consistent with that intention. As a world leader in the business of supplying news and financial information to the financial services industry, corporations and the media, it seems only appropriate for Reuters new U.S. headquarters to be located prominently at the crossroads of the world's media, business and cultural activities."

Reuters, a leading international news and financial information services company, will consolidate its seven New York City offices and establish its North American headquarters at the new Times Square location. Reuters had considered relocating 1,200 New York City jobs to New Jersey or to Connecticut, where the company has two locations. The Prudential Insurance Company will sell the land where the tower will be built and the Rudin Organization will develop the 32-story office tower on behalf of Reuters. Construction is expected to begin in 1998 and be completed in less than three years.

The 774,677-square-foot office tower is located at 3 Times Square at the corner of Seventh Avenue and 42nd Street. Reuters will initially occupy approximately 500,000 square feet in the building. Reuters will consolidate its current offices at 1700 Broadway, 199 Water Street, 40 East 52nd Street, 116 John Street, 9 Debrossi Street, 757 Third Avenue, and 825 Eighth Avenue at the Times Square location. This will be the second major office tower to be built in the area since the start of the 42nd Street project. The first tower is being developed at 4 Times Square by the Durst Organization.

Reuters has entered into an agreement with the City of New York that was negotiated by the New York City Economic Development Corporation (EDC) and is expected to be approved by the City's Industrial Development Agency (IDA). Under the terms of the agreement, Reuters will receive a maximum of approximately $12.5 million in City and State benefits if it successfully retains the 1,800 jobs in New York City. The City and State will also contribute a maximum of $13.5 million in additional benefits if the company creates the projected 2,348 new jobs over the 23-year term of the agreement. The City's portion of the total benefits is $12.6 million.

Reuters generates $29.3 million annually in total New York City tax revenue. These revenues will offset the tax benefits the company will receive from the City in a little more than 5 months. Of the City's total contribution to the Reuters benefits package, 52 percent is linked to job growth.

This project is part of Mayor Giuliani's effort to revitalize Times Square and 42nd Street. The entire 42nd Street Development Project will generate between $330 million and $355 million in annual economic activity for the City and State, in addition to the repayment of the City investment through rental income. The entire 42nd Street Development Project also is estimated to create 35,000 permanent jobs in the City.

"Under Mayor Giuliani's leadership, the City has successfully reversed the trend of businesses leaving New York City," said EDC President and IDA Chairman Charles Millard. "And Times Square is symbolic of the tremendous turnaround the City is experiencing throughout the five boroughs. Mayor Giuliani has shown a commitment to the City's economic growth by securing agreements with Reuters and 34 other major employers to stay in New York City for terms as long as 50 years."

Charles A. Gargano, Chairman of the Empire State Development Corporation, said, "Reuters' decision to grow in New York is yet another example that the policies of both Governor Pataki and Mayor Giuliani -- policies of cutting taxes, eliminating bureaucratic red-tape and lowering the costs of doing business -- are reaping huge benefits for all New Yorkers. This is a great day for New York City and for New York State, and it sends the unmistakable signal that, once again, New York is the Empire State."

In the event the company does not maintain the specified job level, the agreement calls for the repayment of some or all of the benefits taken, as well as penalties, and/or a reduction or elimination of any unused benefits. In addition, the company cannot take advantage of any benefits tied to job growth until it certifies that it has created the specified number of additional jobs above and beyond those it has agreed to retain.

Reuters financial services include transaction products enabling dealers to trade electronically in foreign exchange, futures and options, and securities. Reuters' Instinet provides screen-based services enabling traders to carry out transactions directly and anonymously. This is the company's fastest growing segment.

Reuters was founded in England in 1851 by Paul Julius Reuter, a German immigrant. In 1964 Reuters launched the first international computerized information retrieval system. Presently, Reuters provides news coverage to more than 80 countries in 24 languages and has 143 bureaus throughout the world, providing up-to-the-minute news coverage for print and television.