New York City Comptroller William C. Thompson, Jr. announced today on behalf of the New York City Employees' Retirement System, the New York City Teachers' Retirement System, the New York City Police Pension Funds and the New York City Fire Department Pension Fund, that SAFECO Corporation will implement unfiltered communication mechanisms and procedures between its non-management board of directors and shareholders. This decision comes in response to a shareholder proposal submitted by the funds for the vote of shareholders at the company's 2003 annual meeting.

"I am pleased that as a result of the New York City Pension Funds'
initiative, SAFECO has not only recognized the need for but taken action to increase direct communication between its shareholders and board of directors," said Thompson. "The adoption of this important corporate governance policy will serve to increase the board's responsiveness to the shareholders and enable the board to benefit from shareholder input."

SAFECO's new policy includes the establishment of special e-mail and post office addresses specifically created to facilitate shareholder communication with non-management directors. The correspondence sent to these special addresses will be monitored by the corporation's Lead Director, who will ensure that it reaches the appropriate board committee or board member(s) and to facilitate an appropriate response. The new mechanism will also allow for face-to-face meetings between directors and shareholders.

As a result of SAFECO's decision, the funds have agreed to withdraw their proposal that called for the board to enable direct communications, including meetings, between non-management directors and shareholders, based on the applicable standard adopted by the New York Stock Exchange Board of Directors.

Martha E. Stark, Commissioner of Finance of the City of New York, chair of the Boards of Trustees of the New York City Retirement System and the Teachers Retirement System, and a member of the Boards of Trustees of New York City's Police, Fire and Deferred Compensation Funds said
"I thank SAFECO for opening lines of communications with its shareholders, who include New York City's employees and retirees. As stewards of billions of dollars of pension funds, we need to be certain that corporate executives are acting in the interest of shareholders. Direct communication between shareholders and independent directors will help restore investor confidence that corporate leaders are building long term shareholder value and scrupulously running the companies in which we invest."

Lillian Roberts, Executive Director, District Council 37, AFSCME, and Trustee to the New York City Employees Retirement System noted
"SAFECO's decision to establish a direct line of communication between
shareholders and non-management directors is a victory for all investors.
The idea that directors of public companies need to communicate with their
shareholders and respond to their legitimate demands is a major step in the
New York City Pension Fund efforts to reform corporate governance in the
United States."

Betsy Gotbaum, Public Advocate and Trustee to the New York City' Employees Retirement System said "For too long major corporations have ignored the voices of shareholders. I am proud that the New York City Employees Retirement System is spearheading this campaign for direct communication between shareholders and directors at SAFECO. I know that efforts like this will help protect our pension system from the harmful effects of corporate secrecy."

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