Romney Docs by up064b28


									Company                Response

Corporate Software     Corporate Software’s business model involved supporting
                       American software makers by providing technical support and
                       sales assistance. On the domestic front, Corporate Software
                       provided call center and help desk assistance for American
                       companies, like Microsoft or Pfizer, from facilities in the United
                       States. Internationally, Corporate Software served as a reseller
                       of American software to European customers and provided
                       technical support for these products. Microsoft recognized
                       companies like Corporate Software as instrumental building
                       blocks for reaching multinational customers and ensuring the
                       successful export of American software across the globe.

Stream International   Bain owned only a tiny portion of Stream until after Romney
                       left Bain. While Stream provided many services to its clients,
                       The Washington Post primarily details call centers that Stream
                       operated internationally. Stream’s international call centers,
                       which were based in Europe and Japan, provided technical
                       support in numerous languages to meet the needs of
                       customers in foreign markets. These services were vital for
                       companies like Microsoft and Dell to sell their products to
                       coveted European buyers. American callers would have their
                       calls answered by American call centers. Stream did not have
                       Indian operations until after Romney left Bain.

Modus Media            This is a tired attack that the Washington Post has debunked
                       twice before. Modus Media’s business involved helping
                       companies like Microsoft sell their software to foreign buyers.
                       Many of these products were manufactured in the United
                       States and exported as retail packaged products. Others were
                       produced at international locations closer to the end users.
                       Packaged software products sold in the United States were
                       manufactured in the United States. Modus Media’s business
                       abroad supported US exports.

GT Bicycles            The Washington Post does not mention any new offshoring
                       activity at GT Bicycles during Bain’s involvement. This is
                                        because Bain simply acquired a company that already had
                                        been sourcing certain component parts abroad for years. Bain
                                        did not acquire the company and suddenly inspire it to
                                        outsource, as the Post would suggest.

SMTC                                    SMTC wasn’t formed until months after Governor Romney left
                                        Bain Capital – a fact the article acknowledges. As a result, it’s
                                        obvious that Governor Romney had nothing to do with the
                                        opening of a plant in Mexico. Again, the Washington Post has
                                        debunked this attack twice before.

ChipPAC                                 This allegation was particularly egregious. No overlap existed
                                        between Romney’s tenure at Bain and Bain’s investment in
                                        ChipPac. As the Washington Post knows, Romney left Bain in
                                        February 1999, and ChipPac was acquired a month later.
                                        Regardless, ChipPac’s previous owner was a South Korean
                                        company well known to American consumers: Hyundai.
                                        Unsurprisingly, a major Korean company already had facilities
                                        in Asia at the time of Bain’s investment. Bain did not ship
                                        American jobs to Asia, as the Post would suggest. Rather, Bain
                                        acquired a company that already had international operations.

CS/Stream/Modus Timeline

      1993: Bain acquired Corporate Software.

      1995: Corporate Software merges with R.R. Donnelly to form Stream. Donnelly owned 86% of
       this new entity; Bain owned 4%.

      1998: Modus and Corporate Software break away from Stream. Bain takes control of Modus.

      Feb. 1999: Romney leaves Bain.

      October 1999: Donnelly announces plans to sell Corporate Software and Stream.

      Nov. 1999: Bain acquires Stream.

                                          Corporate Software
General Background:

       Prior to the Stream merger, Corporate Software provided three major services: (1) reselling of
        software for companies like Microsoft, (2) domestic outsourcing of help desk/IT for American
        corporations, and (3) call centers to provide technical support for American software companies.

Corporate Software Before Bain

Corporate Software’s German Office Serviced German Buyers Of American Software. “Rosenthal
expects to build strong alliances with the many American PC software vendors already operating in
Germany. '’We will augment their product offerings with our service plans, providing our German
customers with the same advantages of doing business with Corporate Software that our U.S. customers
enjoy,’ he said.” (Corporate Software Inc., “Corporate Software Opens West German Office,” Press
Release, 3/21/88)

Corporate Software Was A Reseller And Exporter Of American Software, Particularly Microsoft
Products. “The Company purchases the major portion of the products it sells from approximately 20
publishers and distributors. . . . In 1992, products from Microsoft and Lotus account for approximately
38% and 18%, respectively of net sales.” (Corporate Software Inc., Form 10-K, filed 3/31/93)

Prior To Bain’s Acquisition, Corporate Software Had Operations In Massachusetts, California,
Canada, the United Kingdom, Germany, France and Belgium. (Corporate Software Inc., Form 10-K,
filed 3/31/93)

       Corporate Software’s Global Offices Serviced Local Markets. “The Company’s global
        systems capabilities and presence provide a competitive advantage in consistently meeting the
        needs of global customers. . . . The Company has systems and expertise to fulfill customers’
        global requirements. The Company supports its global customers through subsidiaries and
        branches in Canada, the United Kingdom, Germany, France, and Belgium. This infrastructure
        has contributed to the Company winning a number of pan-European and global software and
        service contracts. The Company believes that its global presence and capabilities create a
        competitive advantage in meeting the needs of global customers.” (Corporate Software Inc., Form
        10-K, filed 3/31/93)

       The Company Efficiently Processed Orders For Software Sales To Foreign Markets. “All of
        the Company’s operations, including North American, utilize the same integrated distribution and
        financial information systems for processing and accounting for customer orders. This system
        provides the Company with the capability to service customer requirements throughout Europe,
        as well as the ability to consolidate global customer and vendor information. The Company’s
        global systems capabilities and presence provide a competitive advantage in consistently
        meeting the needs of global customers.” (Corporate Software Inc., Form 10-K, filed 3/31/93)
       Corporate Software Provided Support Services To Assist Its Software Customers. “The
        Company offers hotline advisory services designed to assist internal help desks in making
        selections and supporting products . . . The Company’s Product Support Specialists are available
        to provide technical support on the more difficult post-sales problems confronted by the
        Information Centers.” (Corporate Software Inc., Form 10-K, filed 3/31/93)

Corporate Software’s Business 1993-1995

Microsoft Praised Resellers Like Corporate Software As “An Instrumental Building Block” To
Reach Multinational Customers. “Microsoft Corp. has announced a new program designed to build a
worldwide network of authorized distributors and resellers specializing in providing services, support and
distribution options to large organizations. . . . ‘The large account reseller network is an instrumental
building block in Microsoft's long-term plan to make it easier for large organizations to do business with
us,’ said Jeff Raikes, senior vice president of the U.S. group at Microsoft. ‘We are recruiting channel
resellers who can best fulfill the needs of domestic and multinational customers.’” (Microsoft Corp.,
“Microsoft Announces New Channel Program To Support Large Account Customers With Microsoft
Select,” Press Release, 1/27/93)

Pfizer Outsourced Its Software Technical Support To Corporate Software Employees – In New
York And Boston. “Corporate Software Inc. today announced that Pfizer Inc.'s U.S. Pharmaceuticals
Group is relying on Corporate Software for both on-site and remote PC software support services. Pfizer
Pharmaceuticals turned to Corporate Software in early 1992 to provide this support. Today, Corporate
Software employees located at Pfizer Pharmaceuticals headquarters in New York City and at Corporate
Software's support operations outside Boston provide a range of microcomputer services.” (Corporate
Software Inc., “Corporate Software Announces Agreement To Provide PC Software Support To Pfizer
Pharmaceuticals,” Press Release, 3/8/93)

Corporate Software Hired Recent College Graduates By The Hundreds For Its Tech Support Staff.
“As part of the transition, Corporate Software is hiring by the hundreds. It wants to add 500 full-time
employees, primarily technical support staff, in the first six months of this year. That would raise its total
number of employees to 1,600. For many of those hired, Corporate Software would be their first or
second employer out of college.” (Alex Pham, “Corporate Software's Metamorphosis,” The Boston Globe,

60 Percent Of 900+ New Tech Support Jobs Were In Massachusetts. “Two years ago, the company
had just 30 people providing technical support. By June, it hopes to have 1,000. Its entire payroll
mushroomed from about 200 employees in 1988 to more than 1,100 in January. Three-fifths of the new
jobs will be in Massachusetts.” (Alex Pham, “Corporate Software's Metamorphosis,” The Boston Globe,

General Background

       Stream International was controlled by R.R. Donnelly & Co., with Bain serving as a minority
        investor. While it’s mainly known for providing call center support in the United States and
        Europe, these call centers primarily serviced local markets.


Bain Owned Just 4 Percent Of Stream In 1995. “In 1995 Bain merged Corporate Software with R.R.
Donnelley & Sons Co.'s global software services unit to create Stream International Holdings Inc. At that
point, Donnelley owned 87% of Stream and Bain just 4%, according to a U.S. Securities and Exchange
Commission filing.” (David Carey and Sarah Cohen, “Solectron To Buy Bain Capital Unit,” Daily Deal,

Stream’s Business

Stream’s Call Center Operations Were Based Out Of Massachusetts. “The little secret is that the
‘Microsoft’ employee might not have the slightest idea if it's raining or sunny in Seattle because he or she
is likely sitting in a modern office in Westwood, Mass., the headquarters of a little-known company called
Stream International Inc.” (Jon Auerbach, “More Than A Bit Player; Stream International Catches Wave
Of Outsourcing Services,” The Boston Globe, 3/8/96)

International Operations Serviced International Customers

American Call Centers Handled American Phone Calls. “For example, Road Runner is a cable
modem Internet service sold by cable television systems scattered around the country. Time Warner
Communications of the Mid-South offers the high-speed service in the Memphis area. Stream holds an
exclusive contract to provide second-tier technical support for Road Runner. When Road Runner
customers nationwide call their local cable companies with technical questions about their service, their
calls are routed to Stream in Memphis.” (Kevin McKenzie, “With Higher Profile, Stream Puts Emphasis On
Recruiting,” The [Memphis] Commercial Appeal, 9/20/99)

Stream’s International Call Centers Serviced International Calls. “Stream International Inc. plans to
open a telephone center in Northern Ireland where 120 workers will answer European computer users'
technical questions.” (Dawn Chmielewski, “Firm Fills Growing Need For Computer Advice,” The Patriot
Ledger, 11/29/95)

Stream’s International Call Centers Serviced International Calls. “A further 500 jobs are in prospect
as the result of an investment decision by Stream International, a leading manufacturer and reseller of
personal computer software and services. The Boston-based company, part of the R.R. Donnelly Corp.,
is currently establishing a sophisticated call center in Londonderry to service its software publishing and
corporate end-user customers in Europe.” (Sir Patrick Mayhew, “Irish Ayes,” Pittsburgh Post-Gazette,

Sen. Ted Kennedy Praised Stream For Opening International Call Centers. “Massachusetts Senator
Edward M. Kennedy welcomed Stream's announcement. ‘I commend Stream International for its
leadership in providing technology solutions for both Massachusetts and the global economy. The 500
new jobs being created will have a significant impact on the economy of Northern Ireland, and will also
play an important role in the search for lasting peace that is currently underway.’” (Stream International
Inc., “Stream International Expands Operations To Northern Ireland,” Press Release, 11/29/95)

Stream Sold, Serviced, And Consulted For American Software Products In European Markets.
“Already established as the world's largest provider of software resale and related technology
management services to the corporate marketplace, the Corporate Technologies Business Unit of Stream
International plans to become Europe's largest Lotus Notes service provider. To this end, Stream has
made a significant investment in additional specialised Lotus Notes consulting resources. As part of this
investment, Stream and Lotus have announced a joint series of Pan European seminars on Lotus Notes
Internet and Intranet solutions, commencing in February.” (Stream International Inc., “Corporate
Technologies Unit Of Stream Launches Lotus Notes Consulting Services,” Press Release, 1/15/97)

Stream Opened Its Northern Ireland Call Center To Service A European Client. “In October 1995,
US-owned Stream International faced a dilemma. The company, which provides corporate technical
support services and makes software, had just signed a contract with a major new European client. To
serve the business, it needed to have a new facility up and running in under two months. ‘We were
operating in a facility in London that was not designed for this sort of operation,’ says Judy Salerno,
Stream president and chief operating officer. ‘We had to act quickly.’” (“Stream International, Northern
Ireland,” Corporate Location, Nov./Dec. 1997)

European Call Centers Served European Customers In Their Native Languages. (Stream
International Inc., “Stream International Opens A Second Support Center In France,” Press Release,
7/17/01; Stream International Inc., “Stream International Announces Expansion of Nordic Language
Coverage in Europe,” Press Release, 11/22/00)

Stream International’s Derry Call Center Was Built To Service Clients Operating In The UK. “Stream
International is to establish a computer call centre in Derry to provide on line support services for its US
clients operating in the UK. Operators at the call centre will help computer users install software and solve
any operating and training problems.” (Gerry Moriarty, “Stream Of Jobs For The North,” The Irish Times,

In 2000, Stream Opened A New Mexico Call Center To Service American Spanish Speakers And A
Spain Call Center To Service European Spanish Speakers. (Stream International Inc., “Stream International
Announces Expansion of Spanish Language Coverage in Europe and North America,” 10/12/00)

Stream Did Not Have Operations In India Until After Romney Left Bain

Stream Did Not Begin Servicing North American Clients With Indian Call Centers Until September
2000, More Than A Year After Romney Left Bain. “Stream's Mumbai location was opened in
September 2000, and is equipped to handle voice, email, chat and self-help support for North American
clients.” (Stream International Inc., “Stream International Appoints K. Ramesh Director of Mumbai, India Customer Contact
Center,” Press Release, 12/17/01)

        The Indian Call Center Allowed Stream To Offer 24-Hour Service. “’Our decision to expand
         our services to India provides clients with access to a unique labor market, which is not only
         highly skilled, but also has a strong work ethic. Customers will benefit from our guaranteed timely
         24 hours response even though their questions are being answered from half way around the
         globe.’” (Stream International Inc., “Stream International Launches Virtual Interaction Center
         Offering Expanded E-Service Capabilities In India,” Press Release, 9/14/00)

General Background

        After the spin-off process, Modus concentrated on reselling American software products to
         customers in the United States and around the world. Products sold to American customers were
         made in America.


Stream Spun Off Modus Media In 1998. “In early 1998 Stream spun off its Modus Media International
unit, a supplier of supply-chain management services.” (David Carey and Sarah Cohen, “Solectron To
Buy Bain Capital Unit,” Daily Deal, 9/25/01)

As Of December 1999, Bain Owned 38.8% Of Modus’ Common Stock. (Modus Media International,
Form S-1, filed 12/10/99)

Washington Post: Governor Romney Was Not Involved In Outsourcing To Mexico

This Is A Tired Attack That Has Been Refuted By The Washington Post Twice Before. “A third
company, Modus Media, announced in June 2000 that it would open a plant in Guadalajara, Mexico after
cutting 200 jobs from a plant in Fremont, Calif. Notice a problem with the last two examples? The
outsourcing occurred in 2000 and 2001. Romney left Bain in early 1999.” (Josh Hicks, “Does Mitt Romney Love
Outsourcing?” Washington Post, 5/4/12)

        Washington Post: “Modus Media Case Is Also Not An Example Of Shipping Jobs
         Overseas.” “The Modus Media case is also not an example of shipping jobs overseas. The
         company closed one plant in California and transferred the jobs to North Carolina, Washington
         and Utah. At the same time, it opened an unrelated plant in Mexico. The Obama campaign once
         trumpeted the fact that we had dinged a conservative Super PAC for making the same leap in
         logic.” (Glenn Kessler, “4 Pinocchios For Obama’s Newest Anti-Romney Ad,” Washington Post 6/21/12)

Governor Romney Left Bain Capital In February 1999 To Lead The Olympics In Salt Lake City. (Josh
Hicks, “Does Mitt Romney Love Outsourcing?” The Washington Post, 5/4/12)

Fact Checkers Have Stated That The Facts “Exonerate Romney” From Allegations Relating To
Any Bain Deals In The Early 2000s. “We’ve gone over this problem with the Obama campaign before,
awarding three Pinocchios to a January memo the team released blaming Romney for job losses and bad
deals that took place after the former executive had stopped working for Bain. These facts essentially
exonerate Romney from allegations that he was responsible for any outsourcing, bad deals and layoffs
that occurred with Bain’s companies in the early 2000s.” (Josh Hicks, “Does Mitt Romney Love Outsourcing?”
Washington Post, 5/4/12)

Modus Media Had Foreign Operations To Service Foreign Customers

Modus Media Had Foreign Operations To Supply Foreign Customers “Modus Media International,
Inc. today announced the signing of a multi-million dollar, two-year contract with Microsoft Corporation
(Nasdaq: MSFT) to produce Microsoft retail packaged products for the Company's North America/Latin
America regions. Modus Media has begun servicing the contract through its an Utah Solution Centers. A
key worldwide partner to Microsoft, Modus Media recently signed similar production agreements with
Microsoft for European and Asia-Pacific packaged products. The Europe and Asia contracts are serviced
through Modus Media's Solution Centers in Kildare, Ireland and Singapore.” (Modus Media International, “Modus
Media International Selected By Microsoft Corp. To Produce Retail Packaged Products,” 10/7/98)

The Majority Of Modus’ Revenue Came From International Sales. “We currently conduct business in
Taiwan, Singapore, Ireland, the United Kingdom, the Netherlands and other foreign locations, in addition
to our North American operations. Sales outside North America accounted for 51% and 55% of our total
revenue for 1997 and 1998 and 55% for the nine months ended September 30, 1999.” (Modus Media
International, Form S-1, filed 12/10/99)

Products Made For The American Market Were Manufactured In America. As part of the agreement,
in August Modus Media began manufacturing Quicken 2000 at its Lindon [Utah] and Raleigh Solution
Centers and successfully distributed 500,000 units within 48 hours -- enabling a nationwide, simultaneous
release of Quicken 2000 in 1425 retail outlets throughout North America. Modus Media will next focus on
the QuickBooks release targeted for distribution in December. (Modus Media International, “Modus Media Chose By
Intuit,” 10/27/99)

In December 1999, Modus Had Six Solution Centers In The United States. (Fremont, CA; Raleigh,
NC; Lindon, UT; Salt Lake City, UT; Boise, ID; Preston, WA) (Modus Media International, Form S-1, filed 12/10/99)

                                                        GT Bicycles

Bain Invested In GT Bicycles In November 1993. (GT Bicycles Inc., Form 10-K, filed 3/28/97)

Before Bain Acquired GT Bicycles, It Was Actively Involved In Importing Parts From Asia And
Exporting Assembled Goods. “Possibly just as important to GT as the enterprise zone incentives is
Santa Ana's other, less-discussed designation as a foreign trade zone. It is one of only a handful of cities
in California (Long Beach and Ontario are among the others) to be so designated by the U.S. Department
of Commerce. That's a big plus for manufacturers who do a lot of importing or exporting, because it
exempts them from customs duties. GT does both, importing parts from Asia, including precision parts
from Japan, and shipping an increasing number of finished bikes to China and other growing markets.”
(Rick Reiff, “GT Bicycles Could Be First Into Santa Ana,” Orange County Business Journal, 7/21/93)

GT Would Sell Products Manufactured In Asia To International Customers. “GT Bicycles currently
distributes bicycle products internationally through 56 independent distributors who supply 65 countries
and through its wholly-owned distributors, Riteway Japan, Riteway France and Caratti. The Company
sells to its independent international distributors directly from its Santa Ana, California facility. In addition,
large orders are shipped in containers directly to these distributors from the Company's Taiwan and
People's Republic of China suppliers.” (GT Bicycles Inc., Form 10-K, filed 3/28/97)


SMTC Wasn’t Created Until Months After Governor Romney Left Bain
In July 1999, SMTC Was Formed By The Merger Of The Surface Mount Technology Centre and Hi-
Tech Manufacturing (Both Canadian Companies). “Lehman Brothers, Scotiabank and GE Capital are
in the market with a $155 million credit facility for SMTC Corp., a new company being formed by the
merger of Canada's The Surface Mount Technology Centre Inc. and Hi-Tech Manufacturing Inc.” (Naruth
Phadungchai, “Busy Week For Bank One, Lehman Brothers,” Bank Loan Report, 7/26/99)

SMTC Purchased The Chihuahua Facility In August 1999, Months After Governor Romney Left For
The Olympics. (Darrell Dunn, “SMTC Buys Mexican Facility,” Electronic Buyers News, 8/23/99)


Bain Invested In ChipPAC After Mitt Romney Left Bain Capital

Hyundai Electronics Industries, A South Korean Company, Sold ChipPAC In March 1999. “Hyundai
Electronics Industries Co., Ltd. (HEI) of Seoul and Ichon, Korea, and its U.S. subsidiary Hyundai
Electronics America (HEA) announced today that they have entered into an agreement to sell a 90%
interest in Hyundai's ChipPAC business, a leader in the worldwide semiconductor assembly-and-test
industry, to a U.S. investor group led by existing ChipPAC management and supported by Bain Capital,
Inc. and SXI Group LLC, a Citicorp Venture Capital, Ltd. portfolio investment vehicle.” (ChipPAC, “Hyundai
Electronics Agrees To Sell Majority Interest In ChipPAC,” 3/15/99)

ChipPAC Was A Korean Company With Foreign Holdings That Predated Bain’s Involvement

Prior To Bain’s Involvement, ChipPAC Already Had Factories In Korea And China And Sales
Offices In 5 Countries. (Nam In-soo, “Hyundai Sells ChipPAC To US Firm,” Korea Herald, 3/16/99)

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