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Tuesday, November 29, 2005

AMR Research Estimates Sarbanes-Oxley Spending Will Exceed $6 Billion in 2006

Companies Must Focus on Making Compliance Repeatable, Sustainable, and Cost-
Effective

BOSTON, Nov. 29 /PRNewswire/ -- AMR Research estimates that companies will
spend $6 billion on complying with Sarbanes-Oxley Act (SOX) requirements in
2006, on par with the $6.1 billion that will be spent in 2005. These findings
are based on a recent study conducted by AMR Research in which over 300
business and IT leaders were surveyed on their Sarbanes-Oxley and broad
compliance spending priorities.

In 2006, there will be key differences in how budgets are spent. Budgets
allocated to internal headcount are expected to fall by 8% while the
technology allocation will grow by more than 13% in real dollars over 2005
numbers. External consulting activities, which do not include audit fees, are
expected to hold steady in 2006.

* $2.3 billion (39%) - Internal labor / headcount
* $1.9 billion (32%) - Technology
* $1.8 billion (29%) - External consulting

Technology is playing an increasingly significant role in the integration
of SOX compliance initiatives into business processes. Throughout 2005,
companies reported that they were refining existing business and IT controls
in preparation for automation efforts using technology.

"These spending predications support a long-term approach to SOX
compliance," said John Hagerty, vice president of research at AMR Research.
"Budgets are shifting from headcount to technology so that compliance can
become repeatable, sustainable, and cost-effective."

AMR Research also found the following about companies complying with SOX:
* 39% of companies currently have an operational SOX solution, while 37%
are implementing one in 2005. Even so, over 80% of companies plan to
add to or improve on what they have in place in 2006.
* 40% of companies have a specific budget for SOX compliance; the
remainder fund efforts from existing operations.
* None of the companies surveyed have spent less than anticipated.

In early January, AMR Research will release the detailed results of this
broad-based compliance spending survey. For more information, please visit
http://www.amrresearch.com or call 617-542-6600.

About AMR Research:
AMR Research provides world class research and actionable advice for
executives tasked with delivering enhanced business process performance and
cost savings with the aid of technology. Five thousand leaders in the Global
1000 put their trust in AMR Research's integrity, depth of industry expertise,
and passion for customer service to support their most critical business
initiatives, including supply chain transformation, new product introduction,
customer profitability, compliance and governance, and IT benefit realization.
More information is available at http://www.amrresearch.com.

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