AGENCIES BRUSH UP IMAGE OF CALIF.

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One year after Gov. Pete Wilson and the California Advertising Alliance proposed a pro bono campaign to improve the state's image, the group is delivering on its promise.

At a news conference Aug. 9, Gov. Wilson and state Assembly Speaker Willie Brown Jr. will unveil a $10 million campaign spearheaded by Bob Kresser, chairman-CEO of Kresser/Craig, Santa Monica, and the alliance, a 2-year-old organization initially formed to voice concern about increased efforts to tax advertising.

TV, radio and outdoor ads, created jointly by Kresser/Craig, Dailey & Associates in Los Angeles and Foote, Cone & Belding in Santa Ana, will promote the state's ethnic diversity, entrepreneurial heritage and innovative companies.

"Each piece of communication reminds people that the government is making progress every day in its efforts to support business," Mr. Kresser said, adding that while the campaign takes a fairly serious tone, specific ads are meant to be more "tongue-in-cheek and fun," like a commercial that reminds people that California is home to chardonnay, Levi's and the Stealth bomber.

Another newspaper ad headlined "Why Arizona wants you to desert California" goes so far as to suggest businesses subscribe to Arizona Highways and vacation in the Southwest as long as they remain in California.

Ads are expected to break this week in the Los Angeles Times and other state newspapers, as well as in regional publications like California Business.

In conjunction with the alliance's campaign, the California Marketing Partnership, a group of state-based companies including Times Mirror Co. and Pacific Bell, will break its own $3 million national campaign. The paid effort, created solely by Kresser/Craig, includes TV spots, magazine inserts and an economic development resource guide.

Mr. Kresser said the alliance's campaign-themed "California. The climate's right"-began as an effort to promote business retention. But Julie Meier Wright, California's secretary of trade and commerce, said the focus has been broadened to include expansion and recruitment of out-of-state businesses amid signs that the ailing California economy is starting to rebound.

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