"I am delighted the program has met with such immediate success," said Governor John Baldacci, who pointed out the initiative is designed to create good paying jobs with benefits and economic opportunity for the people of Maine.

"The Pine Tree Zones encourage businesses from outside of Maine to relocate to economically distressed areas of the state," Governor Baldacci pointed out. "The Pine Tree Zone Program helps Maine compete against other states for business attraction. We also continue to support businesses that are already here in Maine."

The initiative provides tax incentives to spur economic development to targeted areas of Maine where unemployment is relatively high and wages relatively low. Since its introduction, more than 100 properties with a total area exceeding 30,000 acres in 130 communities have been listed as part of the program.

Michael Hickey, president of Hickey & Associates, a site selection firm in Minneapolis, Minnesota, confirmed that Maine's marketing efforts are working. "I think Maine is more and more on the radar screen for site selectors," he said. "Public incentives that help reduce the cost of doing business, and that include a commitment by the company to create new jobs, are a key part of economic development. More companies are looking to small towns and cities for relocation provided the demographics and the infrastructure are there."

The certified Pine Tree Zone companies include one that develops health assessment software, another that provides financial services, another that stores materials for the paper industry and one that provides sales-consulting services for high-tech companies.

Other certified firms manufacture modular homes, fiberboard, personal care products, absorbent foam medical products, engineered textiles, industrial and residential water and fluid monitoring systems, residential and commercial decking products, and robotic devices.

In addition to existing incentive programs such as business equipment tax reimbursement, job training and financing programs, the Pine Tree Zone Program will offer Employment Tax Increment Financing, refunds of corporate income taxes, local option Tax Increment Financing and several other innovative benefits important to relocating or start-up businesses.

As the fiscal year closed out on June 30, the Governor said, ""I am pleased that the state's fiscal house is in order and that other economic indicators are favorable for future growth. This year we balanced the budget without raising taxes, protected those most vulnerable in our state, and made crucial investments in economic development and the education and health care of our citizens. I look forward to continuing on a path of positive growth to be shared by all citizens across Maine."

For more information on Maine's Pine Tree Zones, go to www.mainebiz.org or call 207-624-9800.

SOURCE Maine Department of Economic and Community Development -0- 07/08/2004 /CONTACT: Elaine Scott, DECD Marketing Director, +1-207-624-7485, elaine.scott@maine.gov / /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20040708/NYFNSL07 AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com/ /Web site: http://www.mainebiz.org/ CO: Maine Department of Economic and Community Development ST: Maine IN: FIN ENV SU: ES-EO -- NYFNSL07 -- 8883 07/08/2004 05:12 EDT http://www.prnewswire.com