PAC-VAN, INC. ON FIFTH ANNUAL ICIC – INC MAGAZINE INNER CITY 100
American Capitalism at Work

Boston, Massachusetts, April 24, 2003 – The results of the Fifth Annual ICIC-Inc Magazine Inner City 100 have been announced, and Pac-Van, Inc. from Indianapolis is ranked 55 on the list of the fastest growing inner-city companies in America. In addition, Pac-Van was one of four companies inducted into the Inner City 100 Hall of Fame for its placement on the prestigious list each of the five last years.

Now in its fifth year, the Inner City 100 provides unprecedented original data on fast growing U.S. inner-city businesses. The average annual growth rate for 2003 Inner City 100 companies -- businesses that compete in the service, manufacturing, retail and wholesale/distribution sectors -- was a stunning 647 percent for the five-year period 1997-2001, eclipsing by more than a hundred percentage points the average growth rate of last year’s winners.

Number one on the 1999 Inner City 100, Pac-Van continues to grow. The company's revenues have grown from $26,000 in its first seven months of business in 1993 to more than $37 million in 2002. Pac-Van, which rents and sells mobile offices, modular buildings, and storage units, has expanded from its headquarters in the inner city of Indianapolis to 19 locations in 13 states. According to CEO Brent Claymon, Pac-Van's inner-city location provides the company easy access to interstate highways and proximity to downtown Indianapolis. Their location also enables them to keep an eye on nearby competitors, says Claymon, who runs the company with his two brothers, Scott and Matthew.

“The Initiative for a Competitive Inner City (ICIC) and Inc. Magazine created the Inner City 100 list in 1997 as a way of highlighting the fact that business opportunities exist in America’s inner cities, and that smart business owners are using the location to their advantage,” said Michael Porter, Harvard Business School professor and ICIC’s founder and CEO. “But for the past couple of years the list has been more revealing. It shows that inner-city business operators have learned how to adapt their businesses to the challenges of a down economy, to identify growth opportunities and to pursue them vigorously. The reality is, they are the leading edge of a new business model.”

The names of the 2003 Inner City 100 winners were released today at the ICIC-Inc. Magazine Inner City 100 Summit held at the Westin Copley Hotel in Boston. The Inner City 100 Summit is a two-day event that this year included seminars for Inner City 100 owners and managers at Harvard Business School, a reception at Gillette Stadium and then culminating in a gala awards dinner attended by more than 1000 guests.

“Inner City 100 companies are operated by a remarkably savvy group of owners and managers who understand their markets and adapt quickly to markets’ changing needs,” said John Koten, editor at Inc Magazine. The Inner City 100 companies are profiled in Inc’s May issue. “They have learned how to cultivate their workforce, mainly comprised of entry-level inner-city residents, and exploit their location advantage: proximity to downtown and easy access to transportation routes. They are well-run companies, enlightened employers and good corporate citizens.”

Highlights of Inner City 100 company profiles include:
· The 100 companies collectively employ more than 17,000 workers. They generated more than 9,000 new jobs in the last five years alone. They pay above-average wages (average $13.80/hour). Close to a fifth of the owners say they intend to sell part or all of their company to their employees. In a survey, 99 percent said they expect no layoffs in the next six months.
· Thirty-eight of the 100 business owners are minorities: 16 Latino, 12 African-American, 9 Asian, and 1 of Middle Eastern origin.
· Sixty-four percent of the winning companies operate in the service sector; 29 percent in manufacturing; 4 percent in retail and 3 percent in distribution/wholesale.
· Ninety-seven percent of the winners provide health care benefits, 76 percent offer 401K plans and 71 percent offer life insurance.
· Forty-five percent of employees of Inner City 100 companies live in the inner city. Of these, 30 percent hold senior management positions, 30 percent work in mid-level management or skilled jobs.
· The median level of start-up capital was $20,000, with most of that (84 percent) coming from personal assets.
The record number of nominations received this year were largely due to our Nominating Partners: U.S. Conference of Mayors, New America Alliance, National Association of Manufacturers, the Rainbow/PUSH Coalition-Wall Street Project, the Asian American Business Development Center, and National Women’s Business Council. Merrill Lynch, the international financial management and business advisory services company, is the national sponsor of this year’s program and nominated over 500 companies.

For more information about the 2003 Inner City 100 list contact Deirdre Coyle at 617 292-2363 ext.242.

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Editor’s note: The Inner City 100 winners are based in 59 cities. Inner City 100 companies were selected from a pool 5,000 companies nominated from 155 cities compared to approximately 4,000 last year and fewer than 300 in 1999, the first year of the award was given. Criteria for the award include having at least 51 percent of operations located in economically distressed urban areas; having sales of at least $150,000 in 1997 and at least $1 million in 2001. Average annual sales for the 100 companies from 1997 to 2001 was in excess of $25 million. Collectively, sales totaled more than $2.5 billion.

About Initiative for a Competitive Inner City
The Initiative for a Competitive Inner City (ICIC) is a national, non-partisan, not-for-profit organization founded in 1994 by Harvard Business School Professor Michael E. Porter, following several years of pioneering research on inner-city business and economic development. With affiliates in three cities and significant on-the-ground activities in many others, ICIC has rapidly established itself as a national force in inner-city economic development. By identifying the competitive potential of inner cities; strategic location, local market demand, growth opportunities via integration with the regional economy and availability of labor, ICIC aims to build the business case for doing business in America’s inner cities. ICIC’s mission is to spark new thinking about the business potential of inner cities, thereby creating jobs and wealth for inner-city residents. For more information, please visit our web site at www.icic.org.

About Inc
Inc is the leading magazine written for the men and women who own and manage small-to-midsized, fast-growing companies. Published 12 times a year, Inc helps its 1.5 million readers by providing expert advice and practical solutions as they face the opportunities, pitfalls, and rewards of growing a company. inc.com (www.inc.com), the Web site for growing companies, was named Best Online Magazine by Folio and Best Overall New Publication (all media) by the Computer Press Association.

Media Contacts:
Deirdre Coyle, ICIC Ph: 617/292-2363
Angie Hamilton, Pac-Van Ph: 791-2020