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Copyright 1993 American Broadcasting,Companies, Inc., All rights reserved. ABC NEWS SHOW: BUSINESS WORLD January 24, 1993 LENGTH: 3899 words BODY: STEPHEN AUG; ABC' News: Welcome to Business Worldl I'm Stephen Aug, and here's what~s onithis week's agendaL [voice-over] Congressionall Democrats geti ready to take on the Federal Reserve only days afker Bill Clinton was inauguuatedl Do they fear the Fed will do:mCl6nton what some claim it did to Bush?'From Baltimore, this week's Business World guest, Maryland senator Paul Sarbanes. Also, new media, television over your phone line, cable with 500 channels, a new era in home shopping. Once you believe it, will you still want to see it? And eashing in oni an unpopular habit- companies are capitalizing now that smoking,is out, of fashion. ANNOUNCER: From ABC News, this is Business World. Now from New York,,here's Stephen Aug. ### AUG: Smoking was once considered a fashionable habit. Not anymore. Two recent studies have pointed out how widespread the effects of second~hand smoke can be, one of them released just this past week. And it's getting expensive, too. New York State has proposed adding another 2'l-cent tax to the price of a pack, bringing the tax on butts to 60 cents. And while a generation ago cigarette companies used television ads to entice you to smoke, today's advertising is aimed at helping you, kick the habit. [voice-over] In the oldl days,,when smoking was socially, acceptable; tobacco companies thrived. Even though smoking is no Ionger acceptable, cigarette sales still total about $45 billion a year. But now there's a new billion-dollar business aimed at! those 48 million Americans who stiff liglnt up - the business of helping themiqu.it. SAMUEL ISALY, Pharmaceutieall Analyst: This is the first time that it is profitable for smoking cessa2ion, because you have companies that„ in, effecN, are counteradvertising and'not in the public interest, intheir profit interest. AUG: [v,oice-over]'The lion's share of those profits are made by the four prescription nicotine patches. Last year, five million smokers paid about, $300 for three: months''therapy, making &se patches the most widely accepted new pharmaceutical ever: Roger Zimmerman, who quit with the Prostepipatch eight months ago, is glad he gave it a try. ROGER ZIMMERMAN, former Smoker: The best decision I've made in my life, for my family and'r for myself. It''s great, I'm alive agaim It's like being reborn. AUG: [voice-over] It doesn't work for everyone, but it does roughly double the normal 8 percent success rate. And patches work best when used with psychological support. That's good news for behavior modification groups like

Smokenders. S~MOKENDERS~~ GROU~P' LEADER: So you have to be careful of stiopping~, for somebody else. We want very personal! reasons. AUG: [voice-over]! Unlike its early days, more than 90 percent of Smokenders' business is now with corporations. - TOMMY THOMPSON, CEO, Smokenders: The attitude in corporations in the last 10 years has become more open, as you i can show that the investrnent, made in smoking cessation is recapturablle through, lbwer health premiums, as you can show the avoidance:of liability issues: AUG: [voice-over] Showtiime Networks brought, in Smokenders in 1990, when it went smokefree on popular demand. KEN KAHRS, Senior Vice Presidbnt,,Showtitne Networks: As the evidence has grown about secondhand smoke and the impact it has on peoplb, we've heard more and' more from employees who feel they have a right to a smokefree environment at work. AUG: [voiice-over] Showtime pays mosrof the $250 cost of six sessions on company tiime. About two-thirds of the smokers have kicked the habit.. DO'R'I' FRE!IBAUM, former Srmoker: They deal with a pretty serious.psychological and physical addiction, and I think that tiirne frame allows you the time to, transition. AUG: [voice-over] The makers of Cigarrest, a$20 motivational program that comes with a mild over-the-counter drug, say their strategy is to be easily accessible to smokers. DON DANKS, Advantage Life Prograrn: They tend to be more blue-collar. A lbt of them don't have health insurance, and'they don't have tihe ability to have reimbursement for the nicotine patches. AUG': [voice-over] But the company adniits patches have hurt'its sales, andi it's now tuming to:other behavior-modifcation prodiucts. You canialso try this $40 rnotivational program designed to work with patches, oryouican try nicotine gum. Even the travel industry is jumping on the smokefree bandwagon. A dbcadb ago, only five percent of the Burbank Hilton's rooms were smokefree. Today, 70 percent are. TOM' ELLIS, General Manager, Burbank Hilton: What we've fbund" before, when we had a lower percentage, t'he.people were writing on their co mment cards, "We dbn!tt like the smell of smoke iin our room." So~we increased the number accordingly. AUG: [voice- over] Since irt's a drag,to stop smoking„analysts say there's IV little change the cessationi business will self-destruct in the near future, and ~ there's always the dream of faraway smoke-filled lands. ~ Mr. THOMPSON: One day, someone will stan& up in Japan, and it will be one of the Q hundredi largest industrialiists, and they will know that the right thing for >L their employees is to: stop them, from smoking cigarettes. ~A. O Cd 0~

AUG: We'll be right back.