GE Tops FORTUNE's Ranking of the World'sMost Admired Companies.

NEW YORK--(BUSINESS WIRE)--Sept. 20, 1999--

Culture of Top

Performers Distinguished By Placing Leadership

at Top of "Must Haves"

For the second year in a row, General Electric is No. 1 on FORTUNE's third annual ranking of the most admired companies in the

world, a list of 333 companies in 24 industries, with 25 companies selected as "all-stars" for exemplifying leadership on a global scale. Microsoft came in at No. 2 on the all-star ranking (up from No. 3 in 1998) that was once again dominated by U.S. corporations, followed by other repeat performers Coca-Cola (No. 3, down from No. 2), Intel (No. 4, up from No. 5) and Berkshire Hathaway (No. 5, up from No. 7).

Cisco (No. 8), Wal-Mart (No. 7), Lucent Technologies (No. 11) and Home Depot (No. 20) made their debut as all-stars, while Gillette, struggling with the impact of global economic crises, and British Airways, facing stiff competition on key routes, both exited the list. Disney and Hewlett-Packard remained all-stars, but tarnished ones--Disney dropped from fourth to 21st'; HP went from sixth to 23rd. Time Warner, publisher of FORTUNE, replaced Disney as the most admired entertainment company in the world.

While over half of the companies considered most admired in their industry in 1998 returned to take top honors in their fields again this year, some industries saw dramatic changes. Southwest jetted up from No. 4 to take a commanding lead in the airlines category, while Dutch carrier KLM fell from second to eighth place. Ford grabbed the pole position in the motor vehicle industry, moving from fifth to displace Toyota, which fell to second. Among petroleum refiners, Exxon soared to the top as Royal Dutch/Shell slumped from first to fourth.

Merck became the most admired pharmaceuticals company, proving Viagra's effects were only temporarily stimulating for its producer, Pfizer, which fell to second. Diversified financial services firms are facing increased pressure from the online trading and 24-hour markets, but American Express succeeded in becoming the most admired company in that category, followed by Morgan Stanley Dean Witter, which traded up to second from fourth.

To find out what unique management qualities set these companies apart from their peers, the Hay Group, which produced this survey with FORTUNE, studied the leadership approach shared by these organizations and uncovered a number of key differences. Most important among them was the emphasis placed on the role of leaders in driving performance, with most companies putting it at the top of their list of "must haves." Hay research also showed that top organizations distance themselves from the pack by focusing on the following key issues: disciplined leadership identification and selection; intensive leadership development programs that address individual needs and the organization's strategic goals; values that emphasize the importance of people as well as financial results; and leadership models that include such attributes as self-confidence and self-control, achievement orientation, empathy, and team work.

To complete the list of the world's most admired companies, FORTUNE consulted a select group of experts--senior executives and outside board members of companies in each of the industries included, along with relevant Wall Street analysts. Global companies were also rated according to eight criteria: overall management quality, product or service quality, innovativeness, value as a long-term investment, financial strength, commitment to community and to the environment, and use of corporate assets.

To reflect this list's international scope, a ninth category was added: global business acumen. A company's overall ranking is the average of the scores of all nine attributes. To compile the FORTUNE most admired global company all-star list, our panel of experts was asked to name the five companies they admire most, in any industry and in any country: the top 25 vote-getters were named to the all-star roster. (See attached for the complete "all-star" list.)

The October 25 issue is available on newsstands beginning October 11. For more information, or to schedule an interview with a FORTUNE writer or editor, contact Nyssa Tussing at 212/522-6724.