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These articles by Melinda Sherwood and Barbara Fox were published in U.S. 1 Newspaper on May 19, 1999.
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Digital Editing’s Prime Time: For Everyone Doing
Ad managers and corporate media departments can do just
about anything a big production house can do now that digital editing
equipment — such as Avid — has gotten better and cheaper.
"Some of the systems are so user friendly you can sit down and
start editing right away," says James Boyd, a board member
for Moving Image Professionals of Central Jersey.
Moving Image Professionals will host a non-linear editing equipment
exposition on Wednesday, May 26, at 7:15 p.m. at the Princeton Forrestal
Village food court. The latest models of Avid Express, Media 100,
Fast 601 and Panasonic Post Box — all comparable in price —
will be discussed and demonstrated by representatives from each company.
Cost: $10. For information call 732-821-0831.
Ten years ago, Boyd says, non-linear editing systems cost between
$70,000 to $100,000. Today you can buy a complete turnkey system for
about $25,000 to $50,000. "You can buy the software for $8,000
to $10,000," he says, "but you need a lot of hard-drive storage
space because video eats up a lot of gigabytes."
"If your company is doing any kind of video for the Internet,"
Boyd adds, "this equipment is particularly relevant, since it
can be used with Photoshop and AfterAffects."
Anyone who wants to keep up-to-speed on new media should get acquainted
with the digital system. "Since the CD-ROM," Boyd says, "VHS
is going the way of audio tapes."
— Melinda Sherwood
That great song from "42nd Street," "You’re
in the Money" will be the theme song for Steve Goodman,
a Philadelphia attorney who is also a piano player. Goodman’s jazz
riffs are the feature attraction for the New Jersey Entrepreneurial
Network (NJEN) lunch on Wednesday, June 2, at noon at the Forrestal.
Instead of the usual round of self-introductions plus speaker, the
NJEN’s last meeting for the season will give everyone time to do what
they don’t usually have time to do — meet each other. And Goodman
will play, cabaret style, attempting to make himself heard over the
After Wharton, Class of 1962, Goodman was editor in chief of the University
of Pennsylvania Law Review and clerked for U.S. Supreme Court Justice
William J. Brennan Jr. He was a senior partner at Wolf Block, Schorr
& Solis-Cohen before joining the business and finance section in the
Philadelphia office of Morgan Lewis & Bockius.
The NJEN typically attracts entrepreneurs needing capital, professionals
(such as accountants and lawyers) seeking the business of new companies,
and venture capitalists with money to invest in new businesses. The
pianist is so well-liked that this meeting is expected to attract
more than the usual number of Philadelphia investors who are aware
of his musical prowess and would like to hear him play.
"Very few understand how well Steve plays and almost no one has
heard him," says Fred Beste, a partner with the MidAtlantic
Venture Fund. "He says he flipped a coin as to whether to get
a law degree or go to the conservatory." Now Goodman is indeed
a respected attorney with a practice focusing on emerging growth companies.
"Steve is the acknowledged legal guru in this community,"
says Beste. "In the Philadelphia community there are very many
good ones, and you could argue about second place, but nobody would
debate who is in first place. Everybody will tell you he’s the man."
Goodman’s other secondary theme choices are "There’ll be Some
Changes Made," appropriate for venture capitalists with ailing
portfolios, and the ditty from "Damn Yankee," that starts
with the line "You Gotta’ Have Heart." Both entrepreneurs
and venture capitalists do need plenty of heart. If the music stops,
you’ll know the money man has taken a break to do a deal.
As large numbers of people move to PC and Internet banking,
banks in Princeton could start getting business for all over the world
— loan applications from New Zealand and deposits from Malaysia.
So predicts Geoffrey Connor, the former state banking commissioner
who is now an attorney with Reed Smith Shaw & McClay in Forrestal
Connor has put together a morning workshop on electronic banking for
the New Jersey Bankers Association on Thursday, June 3, at 8:30 a.m.
at Forsgate. Anyone may register. Cost: $150. Call 609-924-5550, extension
520. William J. McNichol Jr. of the Reed Smith law firm will
discuss the intellectual property issues of PC and Internet banking.
Paul Tomasofsky, vice president of NYCE Corporation, will ponder
the marketing opportunities. He is in charge of the Remote BankServices
product line, which includes telephone and PC-based home banking and
bill payment services as well as remittance processing services. A
state regulator, William L. Horahan will raise some disturbing
issues regarding senior citizens and electronic banking. Two attorneys
— Timothy J. Byrne and Jerald Hurwitz — will discuss
An alumnus of Williams College, Class of ’68, and Harvard Law School,
Connor was banking commissioner for four years, working for Governor
Jim Florio and briefly for Governor Whitman. In five years, Connor
predicts, electronic banking will be popular with 40 percent of the
market. "And the other 60 percent just won’t do it at all."
If, as a consumer, you want this, "you ought to tell your bank
you want it." But he has these concerns:
is secure — a long combination of perhaps 1,000 symbols and numbers
— but what the consumer keys in is relatively short and easily
stolen. As a former banking commissioner Connor is very concerned
about how a 15-year-old could get his parents’ access code and empty
their bank account.
More likely victims are the elderly. "The problem is the older
widow who gives her daughter the electronic key," says Connor.
Right now the daughter can access her mother’s account on the ATM
machine, but as Connor points out, "How much you can take out
of the ATM doesn’t compare with what you can transfer on the Internet."
is buying a home or a car, you had better be on line if you are offering
loans and mortgages. Suddenly you are not just competing with the
10 banks in your town."
yet look like a bank. "I guess you have to have a picture of a
portico with columns," says Connor. "You have to exude safety
and soundness, confidentiality and trustworthiness, but at the same
time there has to be some interest there."
the world of disclosure, fair lending, truth in lending, and settlement
procedures. They are now based on hard copy; be sure all those same
consumer protections are on the Internet."
is how can this be profitable," says Connor. "Right now a
lot of these internet products are offered without being profitable.
The way to do it profitably may be to offer not too many services
on the Internet — money transfer, routine bill paying, and taking
Theoretically, electronic banking is cheaper than staffing a branch
with people, says Connor, "but it will compress the interest rate
margin, because people will go for the best deal. And if you offer
it electronically you have to offer it in person."
including using only his "home" ATM machine, never an ATM
machine at a strange bank, to make a deposit. His advice: "I would
make hard copies of everything that is important because deposits
in cyberspace can disappear."
Compaq Computer is the platinum sponsor and PricewaterhouseCoopers
and PaineWebber are the silver sponsors of Technology New Jersey’s
First Annual Internet Innovator and Excellence Awards Gala to be held
on Thursday, June 17, at 6 p.m. at the Marriott at Newark Airport.
The non-profit member association has designed a special sponsorship
program that will provide maximum exposure at the event and post-event
benefits. Call Grace Polhemus, president, at 609-924-6117 or
at email@example.com to make arrangements to be a
Individual tickets for the black tie "Celebrated Red Envelope"
ceremony may be reserved directly from the website http://www.technologynj.org.
Cost: $95 for members or $125 for guests.
Need space for your technology start-up? Need money
for your start-up? The New Jersey Economic Development Authority says
it has a fresh supply of both on Route 1 South in North Brunswick.
The shell of its second new 40,000-foot building at the New Jersey
Technology Center (Tech II) is finished, and about half of it is still
vacant. The other half has been leased by a Warren-based firm, Celgene,
which trades on Nasdaq as CELG. Celgene has taken 18,000 feet for
the R&D labs of its agrochemical subsidiary, Celgro, and CUH2A is
designing the fitout.
"Part of the state’s strategy for attracting and fostering high
technology business development, the Technology Center is especially
suitable for businesses in the biosciences, micro electronics, and
information technology industries that need space at affordable lease
rates," says Caren Franzini, EDA director. For information
call 609-292-0369 or E-mail firstname.lastname@example.org.
Perhaps the most attractive perk for an NJEDA tenant is the hefty,
$100 per square foot fit-out allowance that helps pay for design and
construction of laboratory space. In the case of Celgene, that amounts
to $1.8 million. Other opportunities to qualify for NJEDA monies are
through bond financing, loan guarantees, and direct loans. For a fee,
tenants can use labs and research equipment at Rutgers.
Current tenants in the EDA-owned office park are Advanced Care Products,
a research firm investigating over-the-counter hygiene products, Datamark
Software Inc. (providing electronic customer loyalty programs, the
Rutgers’ Cook College Agriculture Research Project (working in the
regulatory clearance area), and Chubb Computer Services, the technology
training firm. Any firm needing a stand-alone building need only ask
— the park has plenty of room.
The fresh supply of funding comes from Progress Bank, a Pennsylvania-based
bank that has joined the Technology Funding Program. With TFP, high
technology businesses can borrow from $100,000 to $3 million, and
the EDA guarantees a portion of the loan at below market interest
rates. The successful applicants for these monies are usually companies
that have already been funded by venture capital or other private
funding — and they have products under a contract or licensing
"Lending to high tech companies is a specialty industry, and we
to have a bank that is familiar with this is a real plus," says
Rose M. Smith, EDA spokesperson. Progress Bank’s specialized
lending division focuses on early-stage, venture-backed companies.
In just two years it has developed more than 60 relationships and
has more than $60 million in commitments.
Also in the Technology Funding Program are six other banks, including
Summit (which funded Magnetic Specialties), Commerce Bank (which lent
to Price Systems), and PNC Bank. These banks are also committing funds
to "low technology" businesses through the Statewide Loan
Pool for Business. Call 609-292-0187 or E-mail email@example.com
Another fresh source of money is coming, indirectly, through a private
pension. In an unusual reversal, the AFL-CIO Building Investment Trust
(BIT) is partnering with the NJEDA to invest $22.2 million in development
funds for the Technology Center. In return, it will get an equity
position. The first AFL-CIO investment was $8.6 million for a construction
loan. The second investment, $13.6 million, will help to pay for the
fit out costs. "This is the first equity investment we have made
in a project being developed and managed by a public entity,"
says Stephen Coyle, president of the AFL-CIO Building Investment
Trust Corporation. "It has proven to be a highly successful prototype."
Consider putting next year’s annual report up on the
Internet as well as — or instead of — publishing a paper version.
Educational Testing Service did that and went from a 32-page piece
with a 55,000 print run last year to 12 pages and only 35,000 copies
this year. "We were looking to something distinctive and felt
we had set a pretty high standard in the past," says Edward
Tate, director of communications at ETS. "We did not save money
this year because we needed to do a print companion piece, but in
future years we expect to reach more people for less money."
The report had national and international distribution to the education
community, public policy decision makers, government leaders, and
elected officials. Unlike some for-profit firms that gave shareholders
the choice of a print or an Internet-based version, ETS made its own
decisions about whom to mail to this year. "No one is compelling
us to distribute our annual report but we have a very wide constituency,"
says Tate. To bring people to the website, ETS mailed postcards and
letters and took out advertisements in education publications.
The home page has a flashing click-through icon and the full address
is http://www.ets.org/etsar. To get the full effect one must
have — or download — Adobe Acrobat Reader, Authorware Web
Player, and Quick Time 3.0.
"Less than one half of 1 percent of all official annual reports
are produced primarily online," says Hans Neubert of Manhattan-based
Belk Mignona, which designed both the web and print version of the
ETS report. Its other clients include Sony and Lands End. "While
it is a growing trend for companies to post their annual reports on
the Internet, these documents are usually just copies of the print
version." The ETS version — complete with video clips, audio
clips, samples of tests, and more than 200 useful links — won
the Big Apple award in the annual report category for the New York
chapter for the Public Relations Society of America.
"This multimedia annual report gives us a chance to demonstrate,
in ways that weren’t possible before, how ETS serves the educational
community," says Nancy Cole, ETS president. Six case studies,
using video clips, show how ETS helps schools and colleges.
Tate admits that no money was saved, at least for this year. "We
essentially produced it for the same budget as last year, but we believe
the reach could be five times greater," says Tate. "You are
talking about a print run of 50,000 versus a web-based report —
where the number of people who can see it is limitless."
National Business Institute (NBI) is offering a one-day
program "New Jersey Sales and Use Tax for Manufacturers" designed
for CPAs, attorneys, enrolled agents, controllers, tax managers, financial
vice presidents, or other tax officers of profit and nonprofit corporations
doing business in New Jersey. The seminar will provide manufacturers
and their tax advisors with information necessary to minimize the
sales and use tax burden by examining exemptions developed specifically
The class will be held Tuesday, June 22, at 8 a.m. at the Holiday
Inn on Route 1, and on Wednesday, June 23, at 8 a.m. at the Holiday
Inn at Cherry Hill. Cost: $189. Call 715-835-1405.
Michael F. Batelli Jr., senior manager with the multistate tax
services group of the law firm of Deloitte & Touche LLP, and David
J. Shipley, an associate in the state and local tax group of the
law firm of Dechert Price & Rhoads, will be the instructors.
Topics include recent legislative developments; areas of sales and
use tax exposure for manufacturers; manufacturing exemptions; administration,
compliance, and audits; and other tax issues such as bad debts, property
held for use outside the state, and county taxes. This program is
designed to qualify for eight hours of continuing professional education
credit for accountants.
NBI also offers comprehensive manuals prepared by experienced professionals
in each area. They include "Advanced Real Estate Law in New Jersey,"
a guide to procuring and insuring free and clear title, permitting
process and environmental liabilities, ethical obligations, and liens
and credit issues (cost, $59); and "Commercial Lending in New
Jersey," covering fundamentals of commercial loan documentation,
dealing with default, bankruptcy, ethical issues, and lender liability
Also "Internet Strategies for the Paralegal in New Jersey"
provides an introduction to the information super highway, strategic
use of the World Wide Web, using the Internet for substantive legal
research, and how to become your firm’s vital link to cyberspace ($63).
Women-owned businesses are eligible for financial assistance
and business counseling through several programs offered by the Small
Business Administration (SBA). In 1998, the SBA New Jersey District
Office approved 338 loans, totaling $52.3 million, to women-owned
businesses. "It’s an accomplishment that we’re very proud of and
would like to see repeated in 1999," says Francisco A. Marrero,
a New Jersey district director of the federal SBA.
The Service Corps of Retired Executives (http://www.score.org)
and the NJ Small Business Development Center (http://www.nj.com/njsbdc),
both counseling arms of the SBA, can help women entrepreneurs put
together a firm business plan.
Once that plan is perfected, the SBA offers three financing options:
the Guaranty Loan Program, the Small Business Pre-qualification Program,
and the MicroLoan program. The Guaranty Loan program allows businessowners
to borrow up to $750,000, while the Pre-qualification Program can
provide up to $250,000 in loans. MicroLoans average around $10,000
and the maximum term allowed is six years.
For more information, visit http://www.onlinewbc.org.
or one of the SBA Business Information Centers, located at 2 Gateway
Center in Newark or 200 Broadway in Camden. Here you will find over
200 business guides and several software packages that can help get
your business off the ground.
The First Union Regional Foundation helped to
fund "Building Stronger Centers," a week-long training program
for employees of daycare centers that took place earlier this month.
The landmark program — touted as the only one of its kind —
was organized by the New Jersey Community Loan Fund (NJCLF), the Child
Care Connection, and the Association for Children of New Jersey. It
included management training, technical assistance, and curriculum
More than 50 centers applied for 15 available slots, said Anne
Li of the NJCLF, and those chosen have plans to expand their programs
to meet the demand for child care for working families. Jan Phillips,
program director for Mt. Carmel Guild Day Care, was among the participants,
and other funding came from the Schumann Fund for New Jersey and the
state department of human services and community affairs. Additional
training will be offered in July.
Comcast, the leading provider of cable television and high speed Internet
services in New Jersey will adopt 25 classes at the Liberty Science
Center (LSC), allowing 750 students to visit LSC this year. LSC is
home to more than 250 hands-on exhibits about invention, health, and
environmental themes, numerous science-related activities, and the
nation’s largest IMAX Domed Theater. Call LSC at 201-200-1000.
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