For immediate release:
May 7, 2007

Contact:
(212) 803-3740

ESDC TO DISSOLVE SOME SUBSIDIARIES, MERGE OTHERS
Moves Will Promote Greater Efficiency, Accountability and Transparency

Empire State Development Corporation Chairman/Downstate Patrick Foye today announced that the Corporation is dissolving 13 of its subsidiaries and merging 25 others into a single holding company in an effort to promote good corporate governance and ease oversight burdens.

The Corporation is also continuing its review of its other subsidiaries, many of them created in the early days of the Corporation’s existence, to see if there are others that can either be merged into the holding company or dissolved.

“These actions are very much in line with Governor Spitzer’s call for greater efficiency, accountability and transparency in state government operations,” Chairman Foye said. “These moves will remove inactive subsidiaries from the books while facilitating oversight of others that may still have assets.”

The 13 subsidiaries slated for dissolution were created for specific purposes which have either been completed or were never undertaken. The 25 being merged into the holding company, Empire State Allsub Corporation, are no longer active but relate to projects still in existence. A separate corporate structure for each is no longer necessary.

Creation of the holding company, Empire State Allsub Corporation, was approved by the Corporation’s board at its April 19 meeting. Completion of the merger of the 25 subsidiaries into Empire State Allsub should be completed later this month.

Empire State Development is New York’s chief economic development agency, encompassing business, workforce and community development. ESD also oversees the marketing of “I LOVE NY,” the State’s iconic tourism brand. For more information, visit www.nylovesbiz.com.