SNOWBOARDING NEWS ITEM

2010 Games Expenditures, Construction on Track

THURSDAY, 26 OCTOBER 2006

Revenues are up, expenditures are on target and venue construction is on schedule according to the 2005/06 Annual Report released today by the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC).

The Annual Report includes the management discussion and analysis and financial statements for the fiscal year ending July 31, 2006. The VANOC Annual Report for the year ended July 31, 2006 is available at vancouver2010.com.

The report highlights progress in key areas such as 2010 Winter Games venue construction, revenue generation through VANOC’s marketing and sponsorship program and development and updating of the Organizing Committee’s business plan.

“We are confident that we are where we need to be at this stage of our program to deliver great Games in 2010. Our staff, government and First Nations partners, sponsors and pre-Games volunteers are all working together to build a project that will demonstrate our best to the world,” said John Furlong, VANOC chief executive officer. “Venue construction is advancing well. We are meeting our construction timelines with a solid venue development budget and a healthy contingency. Sponsorship dollars are coming in as companies from across Canada join our team and good progress is being made in the planning and development of all Games functions.”

“We are well advanced in our planning, our costs are being tightly controlled and our financing strategy is proving effective,” said Rex McLennan, VANOC chief financial officer. “We have strengthened our operational capacity to host the Games. Our information and risk management systems will ensure continued sound decision making as we move into the next phase of Games operations planning.”

Venues
The venue development budget for the 2010 Games is fully funded at $580 million including a healthy contingency of $66.8 million. Progress on venues continues on time and on budget and by the end of this construction season, the venue construction program will be more than halfway complete. VANOC plans to finish the venues well ahead of the Games to provide Canadian athletes with the maximum training advantage and is on schedule to deliver on this commitment.

Revenues / Sponsorship
VANOC has confirmed to date over $550 million in sponsorship revenue and the $100 million target set for sponsorship revenue in 2006 will have been achieved. The substantial sponsorship revenue raised to date reflects the successful conclusion of six National Partner agreements and multiple supporter and supplier agreements.

“This support from corporate Canada is a testament to the significant marketing power of the Games and we fully expect more Canadian companies to join our team,” said Dave Cobb, Executive vice president, revenue, marketing and communications.

Ongoing Activities and Focus
Select highlights of VANOC’s major activities over the next year include:

continued development of the VANOC business plan with a planned public release in early 2007,

After the Torino 2006 Winter Games, VANOC undertook a comprehensive review of its entire operations and updated its draft business plan. This proposed plan will be reviewed by the VANOC Board of Directors at its regular meeting in mid-November. Concurrently with the Board review, VANOC will continue ongoing discussions on elements of the business plan with its government partners and the International Olympic Committee.

The ongoing reviews and discussions of the business plan and its planned release in early 2007 are consistent with standard procedures for an Organizing Committee three years in advance of the Games.
new private sector sponsorship agreements including several new agreements to be completed by the end of 2006;
venue development – constructing and preparing the venues for the first test events in the winter 2007/08 season;
finalization of the 2010 Winter Games Sport Program;
selection of the design team and subsequent development of the Vancouver 2010 Games mascot (s);
preparing for the launch of volunteer recruitment and ticketing sales in 2008;
ongoing recruitment of staff, VANOC currently has 275 employees and anticipates a team of approximately 485 employees by the end of the 2007 fiscal year;
further development of Games-time transportation and accommodation programs; and
communicating the vision of the Games to all Canadians.