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Release No. 0028.03

Alisa Harrison (202) 720-4623\
Taylor Oldroyd (202) 720-1019

VENEMAN LAUNCHES \$1.4 BILLION PROGRAM TO EXPAND TELECOMMUNICATION AND
BROADBAND TECHNOLOGY IN RURAL AMERICA

WASHINGTON, January 29, 2003, Agriculture Secretary Ann M. Veneman today
announced that USDA will expand efforts to bring farmers, rural
residents and businesses greater access to improved telecommunication
technology through the financing of more than \$1.4 billion in loan and
loan guarantees to rural telecommunications providers. In addition,
Veneman announced that President Bush will propose spending \$196
million for the program in its FY2004 budget.

"In his message to the American people last evening, the President
discussed the importance of continued economic growth and opportunity
for all Americans," said Veneman. "The expansion of this technology
initiative will better equip our rural communities to enhance
opportunities for economic development. These tools will help farmers,
rural businesses, students and health care recipients, with new
technologies and telecommunications services."

The Secretary also announced that the Administration will propose
investing \$177 million in FY 2004, an increase of \$44.5 million, to
upgrade its County Service Centers, most of which will be used to
provide Geographic Information System (GIS) technologies to these
offices, allowing farmers and ranchers more access to satellite mapping
and planting information. County Service Centers are located throughout
the U.S. and utilized by producers and other constituents to receive
vital programs and services administered by USDA.

"More effective computer systems and satellite technologies will help
USDA provide better services to our nation's farmers and ranchers, who
rely so heavily on our services and programs," said Veneman. "These
efforts announced today are part of the Bush Administration's continued
commitment to invest in rural areas throughout the country."

In making the announcement, the Secretary and Undersecretary for Rural
Development Thomas Dorr joined Rural Utilities Service Administrator
Hilda Legg in demonstrating how new technology can be used to serve
rural areas. During a live two-way webcast linked to various rural
businesses and community centers from across the country, they talked
with residents and businesses benefiting from the USDA loan program.

Officials from NEX-Tech Corporation in Kansas explained how they were
able to develop broadband infrastructure to service all homes and
businesses in three rural communities. Several local businesses have
reported increased economic opportunities as a result.

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One such example is Osborne Industries, a local agricultural services
manufacturing company that through the high-speed connection has been
better able to manage and market their products competitively in
domestic and international markets.

Members of the University of Virginia Medical School in Charlottesville
also discussed how they used the advanced technology to treat patients
at a hospital in rural Virginia. Medical staff talked about how they
were able to help a two-year old rural West Virginia boy who suffered
from a severe heart condition. Through the expansion of broadband
infrastructure to this rural community the child was provided medical
treatment without having to travel from hospital to hospital.

"Economic and quality of life opportunities largely depend on access to
markets and the ability to complete in the global digital economy," said
Dorr. "The return on this investment will be the opportunity to create
more jobs and stronger rural economies."

Building high-speed technology infrastructure is an investment in the
future of rural America and a key element of President Bush's economic
agenda. Stressing the importance of broadband during his August Economic
Forum in Waco, Texas, President Bush said, "In order to make sure the
economy grows, we must bring the promise of broadband technology to
millions of Americans....broadband technology is going to be incredibly
important for us to stay on the cutting edge of innovation here in
America."

Guidelines for the program and information on how to apply for loans, is
available today in the Federal Register. Interested applicants can also
obtain information by visiting USDA's web at <http://www.usda.gov/>.

USDA Rural Development is the lead federal entity for rural economic and
community development needs. It administers financial and technical
assistance through a network of state Rural Development offices, various
non-profit and educational institutional partners, and its national
office. Further information on these and other rural programs is
available at a local USDA Rural Development office or by visiting
USDA\'s web site at <http://www.rurdev.usda.gov/>.

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