What is meant by the terms boilerplate language and Safe Harbor Statement in a media release?

Boilerplate language:

Boilerplate language is a media release refers to what is traditionally the final paragraph of the release, which provides generic information about the company. It usually tells whether the company is publicly or privately traded, its stock ticker, where it's based, the brands it owns, what it does, etc. Basically, it's a piece of copy that is designed to communicate the basics about the company that gets routinely pasted on the end of each media release.

Consequently, it's usually the first thing that gets cut if the release gets run, but that's a totally different discussion.

Here's a sample of boilerplate language from a recent AT&T release:
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services, the nation's fastest 3G network and the best wireless coverage worldwide, and the nation's leading high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of their three-screen integration strategy, AT&T operating companies are expanding their TV entertainment offerings. In 2008, AT&T again ranked No. 1 in the telecommunications industry on FORTUNE® magazine's lists of the World's Most Admired Companies and America's Most Admired Companies. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

Safe Harbor Statement:

Safe Harbor language basically provides legal protection for public companies, by indicating that the information in the release shouldn't affect stock price (which it may well do anyway.) It's one of those legal mandates, created for liability protection, that results in useless language that doesn't communicate anything. But that's another different discussion... (By the way, if you're in a publicly traded company, you should absolutely include safe harbor language in each of your releases.) Safe Harbor statements are also traditionally added at the end of media releases as part of the boilerplate language.

Here's a Safe Harbor statement from a recent XM Satellite Radio release:
Factors that could cause actual results to differ materially from those in the forward-looking statements in this press release include demand for XM Satellite Radio's service, the Company's dependence on technology and third party vendors, its potential need for additional financing, as well as other risks described in XM Satellite Radio Holdings Inc.'s Form 10-K filed with the Securities and Exchange Commission on 3-3-06. Copies of the filing are available upon request from XM Radio's Investor Relations Department.

(See what I mean about useless language?)

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Tags: press release media release safe harbor language boilerplate news release