KLD Launches Global Climate 100 Index

Includes Companies Taking Positive Steps to Reduce Global Warming

Boston, MA, July 5, 2005 -- KLD Research & Analytics, Inc., an independent investment research and index provider, has announced the launch of the KLD Global Climate 100SM Index, the first global index focused on solutions to climate change.

KLD created the Global Climate 100 Index in response to growing demand from institutions and individuals for investment strategies that address global warming.

The Global Climate 100 Index is made up of companies that KLD expects will provide near-term solutions to global warming while offsetting the longer-term impacts of climate change through renewable energy, alternative fuels, clean technology and efficiency. KLD's Global Climate 100 Index is designed for investors seeking specialized strategies to invest in these types of companies.

"The Global Climate 100 includes companies making meaningful contributions to the commercialization of renewable energies such as solar and wind, future fuels such as natural gas and hydrogen, and innovations or applications of new technologies that help to reduce emissions of greenhouse gases," said Peter D. Kinder, founder and president of KLD Research & Analytics, Inc. "The Global Climate 100 are companies working on solutions to climate change. These companies alone won't 'fix' global warming, but the Index focuses investors' attention on where the possibilities lie."

"Climate change," Kinder continued, "has profound implications for political and environmental sustainability and for the lives of future generations, especially in the developing world. The Group of Eight nations (G8) have underscored the issue's urgency by focusing on global warming and the environment at their meetings to be held July 6-8 at Gleneagles, Scotland."

According to Thomas Kuh, Managing Director of KLD Indexes, industry momentum indicates strong demand for the Global Climate 100 Index. This year, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTERS) created their Green Wave Initiative, committing $1.5 billion to investments in innovative and responsible environmental companies. The Investor Network on Climate Risk, a group of pension funds and other institutional investors, launched a program to raise awareness about the financial risks posed by climate change.

"Pension funds are concerned about the financial risks associated with climate change," said Kuh. "As fiduciaries with a long time horizon, they are looking for new strategies to integrate these factors into their investments. The Global Climate 100 looks ahead to show investors where the opportunities to address global warming will come from."

KLD developed the Global Climate 100 Index in partnership with the Global Energy Network Institute (GENI), a non-profit research and education organization (www.geni.org). GENI will receive a portion of Index licensing fees, which will be dedicated to furthering its mission of promoting the development of electric power networks between nations and continents, with an emphasis on tapping abundant renewable energy resources.

"The Global Climate 100's promise for bringing major investment to "green" energy helps our work of creating a prosperous and sustainable future for all humanity," said GENI President Peter Meisen. "The solutions to energy security and climate change are found in these leading companies. This Index offers a powerful vehicle for attracting that investment."

The International Energy Agency projects that $10 trillion dollars will be invested in energy systems in the next three decades to meet growing global demand. "Climate change is a global issue, so it is not surprising that companies around the world are developing technologies, products and applications to respond to the problem," Kuh added.

Kinder concluded, "Renewable and efficient technologies are presently growing their market share, and the KLD Global Climate 100 Index will be the benchmark for investors who seek both returns and global sustainability."

Profile of Global Climate 100 Index

Company Highlights (Table 1)
According to KLD Senior Analyst, Andrew Brengle, "Both small pure-play companies and large diversifieds are staking their futures on the promise of renewable energy and alternative fuels."

Brengle continued, "Germany's Solon AG [1] makes photovoltaics that are built into the roofs of new buildings and the UK's D1 Oils [2] produces biodiesel from vegetable oil. General Electric [3], already a leader in energy efficient products, has invested heavily in wind and solar. Companies building the infrastructure for more efficient energy delivery and storage include US-based Echelon Corporation [4] with computerized energy monitoring systems and Japan's GS Yuasa Corporation [5] with innovative battery technologies." [See Appendix One for Source Data, Footnotes 1-5]

Large and Small Capitalization Companies (Table 2)
The holdings represent leading-edge companies, large and small. The diverse nature of these companies means that the Index includes some small-cap companies in niche markets as well as some of the world's largest companies in industries that have the greatest impact on climate change. Table 2 shows the constituent market capitalization.

Equal Weighting
The KLD Global Climate 100 Index allocates 1% to each of the 100 securities in the index to assure that large-cap companies do not unduly influence the performance of the index and to channel capital to small companies committed to preventing global climate change. This provides higher exposure to small-cap companies and lower exposure to large-cap companies than a cap-weighted index. Each quarter, KLD rebalances the Index to bring each holding back to 1%.

Sector Diversification of the Index (Table 3)
Companies in the KLD Global Climate 100 Index fall into three categories with roughly equal representation: renewable energy, future fuels, and clean technology and efficiency. Since it includes companies from a broad range of sectors - including oil, automotive, utilities, and financial services - the Global Climate 100 Index is more diversified than benchmarks for the renewable energy industry or the broader energy sector.

Geographic Representation of the Index (Table 4)
Companies in the Global Climate 100 come from 15 countries, reflecting a broad geographical distribution. Fifty-four percent of the companies are from North America, 26% from Europe and 20% from the Asia-Pacific region.

About KLD Research & Analytics, Inc.
KLD Research & Analytics, Inc. (www.kld.com) is an independent investment research and index company. Its products and services enable institutional money managers and investors to integrate social and environmental factors into their investment strategies. KLD helps money managers gather assets, manage risk and control costs. The company is known for the 15-year-old Domini 400 Social Index, the world's first index to benchmark the performance of equity portfolios subject to multiple social screens. Today more than $8 billion is invested in funds based on KLD Indexes.

About Global Energy Network Institute
The Global Energy Network Institute (www.geni.org ) is a non-profit research and education organization. GENI advocates the interconnection of electric power networks between nations and continents, with an emphasis on tapping abundant renewable energy resources - a strategy intended to reduce global tensions, grow economies and improve health and living standards worldwide.


Glossary of Terms Used:

Clean Technology: technology that reduces or avoids creating energy related emissions of greenhouse gases into the atmosphere. In other contexts, the term is applied to technologies that reduce water and hazardous materials pollution.

Climate Change: significant, long-term shifts in the underlying drivers of weather patterns and average global temperature. Scientists posit that emissions from human activities could cause radical and inhospitable changes in global climate over hundreds of years.

Future Fuels: natural gas, gas-to-liquids, biofuels, hydrogen for fuel-cells, landfill methane, and other liquid or gaseous alternatives to coal and petroleum.

Global Warming: the warming of average temperatures around the world resulting from the accumulation of heat-trapping gases in the earth's atmosphere. Such warming has been linked to more frequent hurricanes and severe drought as well as permanent changes in climate.

Greenhouse Gases: a series of gases known to trap the sun's heat in the earth's atmosphere, the chief among which are carbon dioxide, methane, nitrous oxide, and certain man-made fluorocarbons.

Renewable Energy: energy derived from biomass, geothermal sources, hydroelectric dams, solar radiation, ocean tides and waves, and wind.

Appendix One
KLD Research & Analytics, Inc.
Source Data for Quotes, Company Highlights Table 1

[1] Solon AG, Makes photovoltaics that are built into the roofs of new buildings
Source: Solon AG company website www.solonag.com/

[2] D1 Oils Plc, Produces biodiesel from vegetable oil
Source: D1 oils plc company website www.d1plc.com/

[3] General Electric Company, Efficiency leader invested heavily in wind and solar
Source: Joel Makeower, May 2005, "'ecomagination': Inside GE's Power Play", Strategic Thinking column, GreenBiz.com http://www.greenbiz.com/news/columns_third.cfm?NewsID=28061
General Electric Company website www.ge.com/
GE's ecomagination website http://www.ge.com/ecomagination/

[4] Echelon Corporation, Produces computerized energy monitoring systems
Source: Echelon Corporation company website www.echelon.com/

[5] GS Yuasa Corporation, Produces innovative battery technologies
Source: GS Yuasa Corporation company website http://www.gs-yuasa.com/us/index.asp

[6] Johnson & Johnson, Largest corporate user of renewable energy in the US
Source: U.S. EPA Green Power Partnership website
Johnson & Johnson company website

[7] FPL Group, Inc., Largest US wind-power portfolio accounting for 43% of US wind energy
Source: Sustainable Energy Institute and Numark Associates, Inc., November 2004, "U.S. Business Actions To Address Climate Change: Case Studies of Five Industry Sectors," GreenBiz.com
FPL Group, Inc. company website www.fplgroup.com/

[8] BT Group Plc, Signed the world's largest green energy contract in 2005
Source: Dow Jones International News, October 14, 2004, "BT To Source Most UK Electricity From Green Energy" (c) 2004 Dow Jones & Company, Inc.
BT Group plc company website www.bt.com/

[9] Air Liquide SA, Largest industrial gas supplier, active in all aspects of hydrogen fuel cells
Source: Hoovers
http://www.hoovers.com/l'air-liquide/--ID__90734--/freeuk-co-factsheet.xhtm l
Air Liquide SA company website http://www.airliquide.com
(enter fuel cell into website search engine)

[10] Sharp Corporation, Largest share of solar cell market in 2004; expects 25% growth by 2006
Source: Reuters News, March 30, 2005, "Sharp says to beat 04/05 solar cell sales target", (c) 2005 Reuters Limited
Sharp Corporation company website www.sharp-world.com/

[11] Syntroleum Corporation, Clean diesel fuel from natural gas deposits normally flared off
Source: Syntroleum Corporation company website www.syntroleum.com

[12] Energy Developments Ltd., Generates power from landfill gas
Source: Energy Developments Ltd. company website

[13] Vestas Wind Systems A/S, World’s largest wind turbine producer
Source: Dow Jones International News, June 27, 2005, "NEWS SNAP: Vestas Defends Openness, Outlook", (c) 2005 Dow Jones & Company, Inc. Financial Post, November 30, 2004, "Gale force winds of competition: Wind industry booming: But competition in hardware suppliers gouging profits", (c) 2004 National Post
Vestas Wind Systems A/S company website www.vestas.com/

[14] Iberdrola SA, World's largest wind energy generator in 2004
Source: Renewable Energy Report, May 30, 2005, "At wind industry giant Gamesa, factions battle over board of directors membership", Copyright 2005 McGraw-Hill, Inc.
Iberdrola SA company website www.iberdrola.es/

[15] Toyota Motor Corporation, Holds 64% of hybrid car market; plans to sell 300,000 hybrids by 2006
Source: AFX Asia, May 18, 2005, "RPT Toyota to build hybrid cars in Kentucky", (c) 2005, AFX Asia.
Toyota Motor Corporation company website www.toyota.co.jp/en/

[16] Ormat Technologies, Inc. , Generates power from geothermal and cogeneration plants
Source: Ormat Technologies company website www.ormat.com

[17] Xantrex Technologies, Inc., Products convert raw electricity from solar plants into high-quality power
Source: Xantrex Technologies, Inc. company website www.xantrex.com/

[18] Contact Energy, Generates electricity using hydroelectric, steam, and natural gas
Source: Contact Energy company website www.mycontact.co.nz/

[19] Hydrogenics Corporation, Develops hydrogen fuel cell technologies
Source: Hydrogenics Corporation company website www.hydrogenics.com/

[20] Conergy AG, Makes solar power water pumps, panels, and batteries
Source: Conergy AG company website www.conergy.de/

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