Latest Wells Fargo/Gallup survey: increased concern about tighter credit SAN FRANCISCO, Sept. 6 /PRNewswire-FirstCall/ -- Reflecting doubts about credit availability despite a still-strong economy, small business owner optimism declined slightly but remained strong in July, according to the latest survey results from the quarterly Wells Fargo/Gallup Small Business Index. The Index, the sum of both current and future perceptions, dropped to 100 in July - down 13 points from April. The Index tracks six key measures for both current and future expectations: financial situation, cash flow, revenues, capital allocation, job hiring, and credit availability. "Economic fundamentals remain solid but the chill of tighter credit is curbing small business owner optimism at a time when the vibrancy of consumer demand is in doubt," said Dr. Scott Anderson, Wells Fargo senior economist. "Small businesses depend on strong consumer demand for their sales. Declining home prices, high consumer debt levels, and rising food and energy prices have reduced the consumers' willingness and ability to spend in other areas." Small business owners' current view of the operating environment and financial conditions slipped eight points to 41 in July since the last quarterly reading in April. The percentage of small business owners saying obtaining credit was somewhat or very easy fell five points from 53 percent to 48 percent. Despite a drop in small business owner optimism, 94 percent said they feel successful being small business owners and over three-fourths said they would do it all over again if given the chance. Small business owners' future expectations fell five points from April to 59, the lowest level since June 2005. The percentage of small business owners expecting the number of jobs at their company to increase over the next 12 months fell seven points since April to 22 percent in July. "Since the survey began, small business owner optimism has maintained steady growth and rose to its highest point on record for the Index two quarters ago," said Rebecca Macieira-Kaufmann, executive vice president and head of Wells Fargo's Small Business Segment. "A key success factor for this segment of the economy is the ability to remain flexible and resilient despite economic uncertainty and change." About the Small Business Index Since Q3 2003, the quarterly Wells Fargo/Gallup Small Business Index has surveyed small business owners on their current and future perceptions of their business environment relating to their business financial situation. The Index consists of two dimensions: 1) Owners' ratings of the current situation of their businesses and, 2) Owners' ratings of how they expect their businesses to perform over the next 12 months. An Index score of zero reflects that an equal number of small business owners are optimistic and pessimistic about their companies' situation. Results are based on telephone interviews with 603 small business owners nationwide conducted July 12 - 23, 2007. The margin of sampling error is + 4 percentage points. About Wells Fargo Wells Fargo & Company is a diversified financial services company with $540 billion in assets, providing banking, insurance, investments, mortgage and consumer finance through almost 6,000 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest credit rating from both Moody's Investors Service, "Aaa," and Standard & Poor's Ratings Services, "AAA." Providing financial products and services to more than one and a half million businesses with annual sales up to $20 million in all 50 states, Puerto Rico and Canada, Wells Fargo is America's #1 small business lender in total dollar volume according to the most recent Community Reinvestment Act (CRA) data (2005). The second largest national Small Business Administration (SBA) lender in dollars, Wells Fargo is an SBA Preferred Lender in 28 states and the District of Columbia, and originated 4,937 loans for $578 million in 2006. Its diverse business services programs provide outreach and education to women, African American, Latino, and Asian business owners about financial services. Since 1995, Wells Fargo has loaned more than $33 billion to women and diverse business owners. For more information, please visit http://www.wellsfargo.com/biz. About the Gallup Organization For more than 60 years, the Gallup Organization has been a recognized leader in the measurement and analysis of people's attitudes, opinions and behavior. While best known for the Gallup Poll, founded in 1935, Gallup's current activities consist largely of providing marketing and management research, advisory services and education to the world's largest corporations and institutions. DATASOURCE: Wells Fargo & Company CONTACT: Sarah Pew of Wells Fargo & Company, +1-415-396-0866, Web site: http://www.wellsfargo.com/

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