New Wells Fargo/Gallup Survey: Small Business Owners Optimistic About Their Personal Finances Latest Index Results Hold Steady Overall Despite Significant Variations in Regional Index Scores SAN FRANCISCO, Aug. 30 /PRNewswire-FirstCall/ -- The nation's small business owners apparently aren't letting any broader fears about higher oil prices, terrorism, rising interest rates, or slowing economic growth affect their optimism. A new Wells Fargo/Gallup survey reveals that a majority of small business owners indicate a growing level of confidence in their personal financial situations. While the overall Wells Fargo/Gallup Small Business Index rose slightly over the last quarter from 100 to 103, 68 % of small business owners surveyed say their personal financial situations are either "excellent" or "good." The modest increase in the Index, which measures business confidence and overall market conditions, points to the continued strengthening of small business owner confidence. "The continued optimism we are seeing from small business owners is also very clearly translating into greater optimism with regards to how they view their personal financial situations," said Rebecca Macieira-Kaufmann, small business segment manager for Wells Fargo. "The steady rise of small business owner optimism and confidence in their business and personal financial situations is another positive sign for the economy." Small business owners surveyed were asked to cite their company's most important problem. Lack of business/poor economy was cited by 23% of all respondents, followed by financial/cash flow issues (18%), lack of qualified employees (13%), and health insurance (10%). Additional survey results indicate that 70% of small business owners surveyed say their personal financial situations are getting better, while 77% expect to be better off financially a year from now. 67% of small business owners say they are in a good position to maintain their current standards of living when they retire. Additionally, 54% of small business owners say their business will be a major source of their retirement income -- either from continued ownership or from its eventual sale. "The last few years have forced many small business owners to re-examine our retirement plans to ensure we were planning realistically for the future," said Ann Padilla, Owner of SunnySide Inc. / Temp Side, a Denver-based staffing company. "Business has been picking up over the last 12 months, but the recent economic downturn was a wake-up call that reinforced the need for strong business and personal financial planning." While the overall Index score remained relatively flat, there were significant variations from region to region. The Index score for the East Region had the largest increase, rising 20 points from 84 to 104, while the Index score for the South remains the overall highest scoring region at 128 (up from 119). The Index score for the Midwest region was the only region with a major decline in scoring, dropping 21 points to 78. The Index score for the West region again remained virtually the same, dropping one point to 92. The Index tracks six key measures for both current conditions and future expectations as reported by small business owners: current financial situation, revenues, cash flow, capital spending, number of jobs, and credit availability. About Wells Fargo Wells Fargo & Company is a diversified financial services company with $420 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only "Aaa"- rated bank in the United States. Providing financial products and services to more than one million businesses with annual sales up to $20 million in all 50 states, Puerto Rico and Canada, Wells Fargo is the #1 lender to small businesses in the United States in total dollar volume according to 2002 CRA data. The second largest SBA lender in dollars, and third largest in loans, Wells Fargo is an SBA Preferred Lender in 28 states, and originated 3,181 loans for $473 million in 2003. Wells Fargo has also been ranked the number one SBA 504 lender nationally for the last two years. Speer & Associates rated Wells Fargo's online services #1 for small business and for consumers (2003). Its targeted 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 $20 billion to women and minority business owners. 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: Matt Hurwitz of Wells Fargo & Company, +1-415-222-1679, or Web site: http://www.wellsfargo.com/

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