Commonwealth of Kentucky

Office of the Governor

FOR IMMEDIATE RELEASE



Contact:

Jay Blanton

502-564-2611

502-330-2802



Jill Midkiff

502- 564-2611

502-330-1185


Larry Hayes named Secretary for Economic Development

Secretary of Governor's Executive Cabinet has served as interim CED
secretary since September 2008

FRANKFORT, Ky. (Aug. 7, 2009)-Gov. Steve Beshear today announced the
appointment of Larry Hayes as Secretary of Kentucky's Economic
Development Cabinet. Hayes, who is currently Secretary of Gov. Beshear's
Executive Cabinet, has served as interim economic development cabinet
secretary since last September.

"Larry has been a trusted aide and advisor as my Secretary of the
Cabinet since I took office nearly two years ago. However, there is
nothing more important right now than our efforts to maintain and grow
jobs during this trying economy," Gov. Beshear said. "If you look at his
background and his record of creating jobs and strategies for successful
economic development, there is simply no one better to lead our efforts
than Larry Hayes. His broad range of both public and private sector
experience has benefited many areas of the state and I look forward to
his continued work in the recruitment and retention of jobs on behalf of
Kentucky."

The Cabinet for Economic Development is the primary state agency
responsible for creating new jobs and investment in the state. Hayes was
one of three finalists forwarded to the Governor by the Economic
Development Partnership Board this week. Gov. Beshear interviewed the
three finalists this week in person before making the selection.

Hayes will step down as Secretary of the Cabinet, a position he has held
since December 2007. Gov. Beshear today announced that Mary Lassiter,
the state budget director, will be the new Secretary of the Cabinet.
Lassiter, who earns about $150,000 annually, will fill both roles. Gov.
Beshear said that while he "hates to lose Larry Hayes from his current
role, I am confident that with Mary's capable and strong leadership, we
won't miss a beat in effectively and efficiently administering this
government on behalf of the Commonwealth."

"Nothing is more important than creating and maintaining jobs for our
economy right now," Hayes said. "We have made progress even in very
difficult economic times and, as importantly, we have some very
important opportunities on the horizon in areas such as energy and
advanced manufacturing - strengths of our state and areas where this
Governor has demonstrated incredible leadership. I am very appreciative
of Gov. Beshear's confidence in me and I believe strongly that with his
continued leadership and vision we will make a real difference in
Kentucky by creating more and better jobs for our people."

The Economic Development Cabinet is overseen by the Partnership Board,
comprised of both private sector and public sector members. As Cabinet
Secretary, Hayes will serve as its chief executive officer, in charge of
the day-to-day conduct of its affairs. He will report to the partnership
board, which has set his annual compensation at $250,000 as part of a
three-year contract. The position will receive standard state employee
benefits and, unlike previous contracts with former Cabinet secretaries,
will contain no performance incentives or other such measures. Moreover,
Hayes will continue to take a voluntary 10 percent pay cut as he did as
Secretary of the Cabinet for the rest of this year.

In recent months, Hayes has been intimately involved in negotiations
with Ford to invest more in its Louisville Assembly plants, maintaining
thousands of jobs. He also helped lead efforts to relocate DHL to
Northern Kentucky from Ohio, a move that will bring hundreds of jobs
back to the state. And Hayes was central to the negotiations to bring
the Argonne Federal Laboratory to Kentucky to conduct research into
advanced automobile batteries. Argonne, based in Chicago, will be
working jointly with the University of Kentucky and the University of
Louisville at a new research center in the state.

While serving in the administration of former Governor Martha Layne
Collins in the mid-1980s, Hayes helped lead the efforts to bring Toyota
Manufacturing to Georgetown, Ky., a move that has created thousands of
jobs and billions of dollars in investment for the state.

The two other finalists for the Economic Development Secretary were:

*        Chad Newell, who is currently a developer with Newton Oldacre
McDonald, a retail development firm in Nashville. Newell previously was
executive vice president of the Metropolitan Development Board in
Birmingham, Alabama.

*        Rhonda Rice, executive administrator with Innovation Valley,
Inc., a regional economic development partnership in East Tennessee, and
executive vice president of the Knoxville Area Chamber Partnership.

"The Partnership Board conducted an extensive national search.
Fortunately for Kentucky, the best candidate was in our midst in Larry
Hayes," said Luther Deaton Jr., chairman of Central Bank & Trust Company
and vice chair of the Partnership Board. "Larry combines deep experience
in both the public and private sectors. He has created jobs. He has run
businesses. And he has been an instrumental part of some of Kentucky's
most significant economic successes - from bringing Toyota to Kentucky
to the creation of the Greater Louisville Inc. I'm excited about the
leadership he brings to the table and the opportunity to work with him
as we strive together to move Kentucky forward."

"I've had the pleasure of working with Larry Hayes extensively in recent
years," said Steve St. Angelo, president of Toyota North America. "He
understands Kentucky's important role nationally and internationally in
the automotive business as well as the importance of strategic thinking
and focused action on behalf of economic development. His leadership is
one of the reasons Toyota is in Kentucky. We look forward to working
with him and the Governor as they aggressively and thoughtfully lead our
economic development efforts during these most challenging of times."

"Larry Hayes may well be the most honorable, competent person I've ever
met in my life," said Nick Nicholson, President and Chief Executive
Officer of Keeneland in Lexington. "He has done so much for Kentucky. He
worries more about results than who gets the credit. He's just a
wonderful public servant. I don't think the Governor could have made a
better choice than Larry Hayes for the Commonwealth."

The several-month search for a permanent Economic Development Cabinet
Secretary was conducted by the PACE Group, a national executive search
firm that has conducted searches for private industry, government and
nonprofits in more than 40 states since it was founded in 1993. PACE has
regional offices in Chicago, Ill. and Tupelo, Miss.

PACE submitted the names of five finalists to the partnership board at
its regular meeting on Wednesday.  Pursuant to KRS 154.10-040, the names
of the final three candidates selected by the partnership board were
then submitted to the Governor for final selection.

Hayes has a long history of leadership and success in both the public
and private sectors. He previously held the same position as Secretary
of the Cabinet from 1983-1987 under former Gov. Collins. Before his
return to state government, Hayes served as deputy mayor of the city of
Louisville under Mayor Jerry Abramson from 2003-2007.

Previously, he was the first head of the organization that would become
Greater Louisville Inc., leading the merger of that community's Chamber
of Commerce and Economic Development organizations.

In addition to his many years of public service, Hayes also has run and
invested in several successful businesses in the warehouse, distribution
and banking industries. Hayes lives in Louisville with his wife,
Melissa. Hayes has three children and six grandchildren.