Quality not Quantity is the Answer to Better Company Reporting

LONDON, March 31, 2011 - Changing the rules and guidance on what should appear in a narrative
report could lead to a huge increase in boilerplate reports. So warns the IR
Society in its response to the Effective Company Stewardship: Enhancing
Corporate Reporting and Audit enquiry launched by the Financial Reporting
Council.

Commenting on the Society's submission Richard Davies, Chairman, said:

"We are seriously concerned about many aspects of the proposals made in
this consultation.

"Assumptions that enhanced rules will lead to better, more useful
information for investors are incorrect. We worry that it will lead to the
exact opposite of what we all want; clearer communication of the equity
story. More helpful would be a sorting out of the morass of different rules
that issuers have to contend with allowing companies to focus on quality, not
quantity."

Other concerns highlighted by the IR Society's response include the
misconceptions around savings to be made by enhanced use of technology. Many
UK companies have taken advantage of the changed default to electronic
communication with investors, meaning that now the principal cost is in
preparing the on line documents. The cost of doing this is significant and
for some companies it may well outweigh the saving from printing fewer hard
copies, argues the Society.

Notes for editors:

The Investor Relations Society's mission is to promote best practice in
investor relations; to support the professional development of its members;
to represent their views to regulatory bodies, the investment community and
government; and to act as a forum for issuers and the investment community.

The Investor Relations Society represents members working for public
companies and consultancies to assist them in the development of effective
two way communication with the markets and to create a level playing field
for all investors. It has nearly 600 members drawn both from the UK and
overseas, including the majority of the FTSE 100 and much of the FTSE 250.

Our response is based on feedback we have received from our members who
are engaged in the preparation of Annual Reports both as companies and
advisors.

    A full copy of the Society's response to the FRC can be found at:
    www.irs.org.uk
    or by phoning +44(0)20-7379-1763 for an e-mail copy

    For further information contact:

    The Investor Relations Society
    Richard Davies - Chairman +44(0)20-7492-0501
    Mark Hynes - Policy Committee Chairman +44(0)7957-430-333
    Michael Mitchell - General Manager +44(0)20-7379-1763

A full copy of the Society's response to the FRC can be found at: www.irs.org.uk or by phoning +44(0)20-7379-1763 for an e-mail copy, The Investor Relations Society, Richard Davies - Chairman +44(0)20-7492-0501, Mark Hynes - Policy Committee Chairman +44(0)7957-430-333, Michael Mitchell - General Manager +44(0)20-7379-1763