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FOR IMMEDIATE RELEASE Contact: Teresa Ruiz

July 25, 2006 973-621-4404

Anthony Puglisi

973-621-2542

MOODY’S INVESTORS SERVICE RAISES COUNTY BOND RATING

TO A2 WITH POSITIVE OUTLOOK

Essex County Executive DiVincenzo’s Administration is Credited with Restoring Fiscal Integrity to Essex County

1st time in 12 years the county gets such high marks

Newark, NJ – Essex County Executive Joseph N. DiVincenzo, Jr. announced on Tuesday, July 25th that Moody’s Investors Services has upgraded Essex County’s bond rating to A2 with a Positive Financial Outlook from A3 with a Positive Financial Outlook. It is the fifth time in less than four years that the financial rating house has awarded Essex County a positive financial review and increased its bond rating. This was the first time in 12 years that the County has received such a high rating.

The Moody’s report credits the DiVincenzo administration with stabilizing the county budget and creating a reserve for emergencies. “The upgrade to A2 and positive outlook reflect the multi-year improvement in financial operations reversing the prior trend of operating deficits and narrow reserves,” the report states.

The improved rating will help save Essex County millions of dollars in interest and insurance costs when it sells bonds, and will help make its bonds more attractive to private investors.

“This news is evidence that our long-range financial recovery plan is working and that Wall Street recognizes our efforts,” DiVincenzo said. “Restoring the County’s fiscal stability has been a priority of my administration. We certainly have made a great deal of progress by raising our bond rating from just above junk bond level to A2 in less than four years,” he added.

“The upgrade to A2 from A3 reflects the continuing success of the current management team in restoring fiscal integrity to the county,” the July 21st Moody’s report states. “Over the past three years, certain expenses have been reduced by a persistent pursuit of alternative funding and introduction of efficiencies that have enabled the county to maintain services while eliminating deferred charges (which would be reflected as fund deficits under GAAP accounting)… The positive outlook reflects Moody’s belief that the county will be able to stabilize its financial reserves at current levels,” it states.

The reports continues to read,” Also factored into the rating are the 2003 and 2004 year-end results which, together, reflect a significant augmentation of reserves reflecting conservative fiscal management and willingness to raise recurring revenues to pay for recurring expenditures, restoration of internal liquidity, elimination of $22 million in deferred charges, and a sharp reduction in reliance on one-time revenues ($8 million in 2005, down from $48 million in 2003)”.

The County Executive noted this is the fifth time since he took office in January 2003 that Moody’s has had a favorable review of Essex County’s financial standing.

Moody’s had downgraded Essex County’s bond rating to Baa2 with a Stable Financial Outlook in November 2002 and threatened to downgrade the bond rating again shortly before DiVincenzo took office. The County Executive met with Moody’s representatives and outlined a multi-year fiscal recovery plan, convincing the Wall Street ratings firm to maintain the County’s Baa2 rating with a Stable Financial Outlook. Maintaining the bond rating in 2003 marked the end to the downward spiral of its financial rating that Essex County experienced since 1975.

The DiVincenzo administration got Essex County’s financial standing heading in a positive direction in March 2004 when Moody’s improved Essex County’s Financial Outlook to Positive while maintaining its bond rating at Baa2.

The third step forward came on February 1, 2005, when Moody’s announced Essex County’s bond rating was upgraded to Baa1 and put the County on a positive credit watch signaling another pending upgrade.

On April 14, 2005, the County received its fourth favorable financial review in two years. The new A rating with a Positive Financial Outlook was the highest bond rating held by Essex County since December 1994 when an A bond rating was in effect.

A total of $31 million in spending was cut in 2003 and 2004, the first two years of DiVincenzo’s administration. These savings were achieved by streamlining operations, eliminating unnecessary contracts and positions, and cutting expenses. The County Executive has continued to follow a hiring freeze that was initiated in June 2003. He also worked with officials from the Essex County Improvement Authority, Essex County Utilities Authority, Essex County Vocational School District and Essex County College to follow his example and reduce their operating budgets. In the Vocational schools and County College, reductions were made in administrative areas so classroom instruction was not affected.

Millions of dollars in future construction and financing costs were saved by expediting the completion of major capital projects, such as building the new Essex County Correctional Facility, renovating the Historic Essex County Courthouse, completing the remediation of Riverbank Park and restoring Verona Park.

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