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The Network and BDO Consulting Release Third Quarter 2010 Data in the Quarterly Fraud Index (TM)

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The Network and BDO Consulting Release Third Quarter 2010 Data in the Quarterly Fraud Index (TM)

Number of fraud reports continues to decline – nearly one in five reports related to fraud despite overall industry statistics pointing to fraud incident increase

Norcross, Ga. – January 12, 2011 – The Network, Inc., a leading provider of governance, risk and compliance (GRC) solutions, and BDO Consulting, a division of BDO Seidman, LLP, today announced the third quarter 2010 findings of its Quarterly Corporate Fraud Index™, a comprehensive examination of fraud incident report activity from 12 million employees worldwide.

In third quarter 2010, fraud incident reporting accounted for 18.8 percent of all compliance reporting activity from more than 1,000 organizations worldwide. This percentage has trended downward over the past six consecutive quarters since the second quarter of 2009, when fraud-related reports accounted for 20.7 percent of all reports made.

In comparison to the same time period in 2009, the total number of fraud-related incidents fell by 4.6 percent, which marks the first decline in third-quarter statistics since the inception of the Quarterly Corporate Fraud Index. Year-to-date for 2010, the average percentage of fraud-related calls stands at 19.5 percent, down 1.1 percent from 2009.

“Fraud incident reporting has returned to the same levels seen at the end of 2008, but year-to-date, we’re still seeing almost one in five calls being directly related to fraud,” said Luis Ramos, chief executive officer of The Network. “There is still the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act to consider, and SEC regulations regarding the Dodd-Frank Act’s whistleblower provision are now coming online. Corporations must remain vigilant regarding their compliance policies and risk management programs to deter malfeasance.”

Over the past five years, third quarter comparisons of fraud reporting are as follows:

Fraud Report 2010

According to Timothy Mohr, Certified Fraud Examiner and partner at BDO Consulting, “industry-wide statistics point to an increase in the amount of fraud, but the number of hotline fraud claims has gone down, perhaps the result of non-company based reporting or better risk management at the executive level. Whatever the case, in light of Dodd-Frank, good business dictates that executives should continue to assess and expand their GRC programs.”

The Quarterly Corporate Fraud Index is compiled from actual incidents reported by clients of The Network and is analyzed by The Network and BDO Consulting. Fraud-related incidents include reports on corruption and fraud, misuse of assets, conflicts of interest and FCPA violations.

For more information regarding the Quarterly Corporate Fraud Index, visit http://www.tnwinc.com or email corporatefraudindex@tnwinc.com. To view a social media version of this news release, visit http://pitch.pe/117138.

About The Network, Inc.

The Network, Inc. is a leading provider of governance, risk and compliance solutions that help organizations mitigate risk and promote organizational compliance. Through the integration of on-demand software and services, The Network helps clients identify, communicate, resolve and mitigate risk issues and incidents. Established more than 25 years ago, The Network serves thousands of organizations in every industry, including nearly 50 percent of the Fortune 500. For more information, visit www.tnwinc.com.

About BDO Consulting

BDO Consulting provides litigation, investigation and restructuring services to major corporations, law firms, insurance companies, financial services entities and government organizations. Our highly experienced and well-credentialed professionals draw upon a range of industry knowledge and completed consulting engagements throughout the United States and internationally to provide clients with unparalleled service. BDO Consulting leverages the global industry and accounting knowledge of the BDO International network, providing rapid, strategic advice to assist our clients with dispute resolution, mergers and acquisitions, financial solvency and regulatory compliance issues. BDO Consulting is a division of BDO USA, LLP, a New York limited liability partnership and the U.S. member of BDO International Limited. BDO International Limited is a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. www.bdoconsulting.com

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