(BTC) for dropping the company in favour of a Toronto firm.

"It always saddens us when any advertising or other business is sent offshore,'' AAC said in a press release. "Not only because of the economic impact it has in the community -- BTC's leaving will no doubt have a profound effect on every level of our industry from the messengers that deliver their project, to photographers, graphic artists and printers that produce them -- but because it shows a fundamental lack of commitment to Bermuda as a community.'' AAC was BTC's agency for the past ten years until the telephone company decided to open the contract to other bidders. BTC announced this week it was hiring Canadian-based Communique Group to handle the account.

AAC said it was Bermuda's largest and oldest advertising agency with a staff of 23. The company is affiliated with Saatchi & Saatchi Worldwide. Clients include BF&M, Bermuda Home, ACE Ltd., IPCRe Ltd., Stuart's, Harbourmaster, and the Bermuda International Business Association.

The Communique Group's clients include Microsoft Canada, Adidas, Toshiba of Canada and United Distillers.

AAC is owned by Rhona Emmerson and Cathy Mahoney.

The local agency has an ally in National Liberal Party leader Charles Jeffers, who last night said it was important for local firms to be given contracts ahead of overseas rivals.