Sticking to Success: A.I. Technology

Stock News:

Stock News: Covance Buys

Marketing Muscle: Braun Expands

Virtual Classes Grow: STG & PLS

Taken Over? Don’t Despair

Expansions

Management Moves

Crosstown Moves

Leaving Town

Death

Corrections or additions?

Life in the Fast Lane

These articles were published in U.S. 1 Newspaper on

November 25, 1998. All rights reserved.

Top Of Page
Sticking to Success: A.I. Technology

If you use an epoxy to help assemble a space shuttle

or a computer or a sensitive electronic component, you want that epoxy

to keep its flexibility no matter what. A.I. Technology (AIT) can

boast about its epoxies; they are flexible, they work better than

solder, and they operate within a wide range of temperatures.

Success with nearly 300 such products has helped AIT double its

business

in two years. Founded in 1981 by Kevin Chung, this high tech

manufacturing

firm bought the old McLean Engineering building on

Princeton-Hightstown

Road and moved in with nearly 100 employees last month. AIT

manufactures

adhesives, epoxies, and thermal materials for the computer,

communications,

and power supply industries; it also provides services to these

industries.

All products are made to order and delivered within two weeks. Their

shelf life ranges from several months to a year, and some must be

stored at below zero temperatures. Pricing ranges from pennies per

square inch of sheet material to several hundred dollars for some

of the epoxies that are used in very specific esoteric applications,

says Joe Tallone, manager of marketing and sales. AIT, which had been

based on Princess Road, markets its products in Asia and South America

as well as in the United States. All manufacturing, sales, and

shipping

are done in Princeton Junction.

One segment of AIT’s product line consists of films,

pastes and gels that guard against heat — the great enemy of

computers

and other electronic products. "These materials are specifically

designed to help conduct heat from a processor into a heat sink,"

says Tallone. "Our thermal materials help conduct heat from a

sensitive electronic component or chip into a heat sink, which can

then disperse the heat through its `fins.’" This thermal material

is used in a range of sizes, from small chips and components to

products

as large as power supply units.

AIT also manufactures adhesives and epoxy materials that are available

in electrically conductive and nonconductive form, and also in

thermally

conductive form. The prize epoxies are so flexible they can survive

without fracturing when used to bond electronic components that expand

at different temperatures. They are provided in both pastes (in

syringes

for automatic dispensing) and other formats (including sheet material

of 11-inch width up to any length). "These materials are used

in everything from the computers and power suppliers for the space

program to medical equipment such as pacemakers," says Tallone.

Companies desiring to move away from solder in the manufacturing

process

will be helped by the AIT product line. Solder is time consuming to

apply and contains lead, a hazardous material. "There is a

definite

risk of solder fracturing when components are turned off and on,"

says Tallone. "With AIT’s flexible epoxy, there is no fracturing

between the connection." The product, called Solder-Sub, has been

tested by major companies and is presently being introduced worldwide

by computer, multi-chip, ball grid assembly (BGA), and other component

manufacturers.

Clients can outsource some of their manufacturing operations to AIT.

One service, for heat sink manufacturers, involves placing thermal

materials on heat sinks or heat spreaders and shipping them to

computer

makers and small power suppliers. "We have to heat the heat sink

and place it accurately at a high rate of speed," says Tallone.

Another service involves using lid-sealing material to bond two halves

of, for instance, a smart card or a telephone handset. Some of these

AIT pastes protect against electro-magnetic leakage.

A proprietary service involving epoxy deposits as a replacement for

solder has the potential to be extremely valuable, says Tallone.

"Other

companies are doing this using our materials."

Chung, 47, obtained his PhD in physics from Rutgers University and

previously worked for RCA as well as other major companies. He holds

about 10 to 15 patents in the field and is a speaker of record on

polymer flip chip, thermal materials and other adhesive topics.

Chung’s

wife, Cynthia Chu, is also a principal in the firm. They have two

teenage children.

Tallone, 50, went to Rider and has an MBA from Seton Hall. He

previously

worked for W. R. Grace as manager of planning, for B&D as corporate

planning director, and for the federal government as director of trade

for the mid-Atlantic region. Tallone is married with one teenage

child.

At 60,000 square feet, AIT’s new facility is almost eight times the

size of its old location on Princess Road. The 16-acre property,

complete

with a lake, had been owned by McLean Engineering, a manufacturer

of fans and blowers, which moved to Robbinsville. Fennelly Associates

had marketed the property for $2.45 million. Bond financing from the

New Jersey Economic Development Authority helped guarantee AIT’s bank

loan. "Caren Franzini and team were instrumental in helping to

obtain financing at a more favorable purchasing opportunity,"

says Tallone.

A good measure of the company’s business has been won from its

competitors

during the past two years. "We plan on continuing with this same

rate of growth in 1999," says Tallone.

— Jeff Lippincott

A.I. Technology, 70 Washington Road, Princeton

08540. Kevin Chung, president. 609-896-3838; fax, 609-896-3315.

E-mail:

aitech@tigger.jvnc.net. Home page: http://www.aitechnology.com.

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Stock News:

Chrysalis Bought

A Canadian firm, Phoenix International Life Sciences,

has bought Chrysalis International Corp., and will acquire all its

outstanding shares and debt. Fifty people working on College Road

in Chrysalis Transgenic Services will stay at that location, but 10

people in a headquarters office in Raritan will be moved, either to

Canada or to College Road. Phoenix will issue shares worth $8.29

million

and assume $10.5 million in debt.

Traded on Nasdaq as CRLS, the company develops therapeutic products

and biological testing services on transgenic animals. But its largest

project was canceled in midstream, and it lost 25 cents per share

in the third quarter, three times the loss for that quarter last year.

The nine-month loss of $6.7 million was four times the loss for the

same period last year.

The College Road lab, says CFO John G. Cooper, "is very

well-positioned

for future growth." Chrysalis evolved from DNX, the firm made

famous by its work with pigs that produce human-like blood, as did

its neighbor at 303 College Road, Nextran. Nextran holds the rights

to the pig research, while Chrysalis works with genetically engineered

lab mice.

Chrysalis (DNX Transgenics), 301B College Road

East, Princeton Forrestal Center, Princeton 08540. Mark E. Swanson,

vice president transgenic sciences. 609-520-0300; fax, 609-520-9864.

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Stock News: Covance Buys

Covance, 210 Carnegie Center, Princeton 08540-6681.

Chris Kuebler, chairman and CEO. 609-452-8550; fax, 609-452-9375.

Home page: http://www.covance.com.

Covance Inc. has bought GDXI Inc., a leading provider of centralized

electrocardiogram (ECG) analysis for clinical trials. ECG analysis

is one of the most important and frequently utilized diagnostic tools

in clinical trials, with more than 50 percent of all clinical trials

including it as part of the study protocol. The purchase price was

not disclosed.

"This acquisition reflects our strategy of shaping solutions for

our customers by providing them with rapid access to high quality

data that accelerates the drug development process," says Chris

Kuebler, chairman and CEO of the Carnegie Center-based firm.

GDXI has processed more than 5 million ECG’s since it was founded

in 1972. The company is currently supporting clinical trials involving

more than 31,000 patients at over 2,300 sites worldwide. GDXI

distributes

a proprietary hand-held ECG device to clinical trial sites that can

be used anywhere in the world. The device collects the data, performs

a real-time quality check, then transmits the information by telephone

to GDXI’s central operations center in Reno, Nevada, which is staffed

24 hours a day, seven days a week. On-site cardiologists review the

information and provide a patient report to the study sponsor within

24 hours.

"Our systems and processes help eliminate errors and get the data

into the hands of investigators quickly," says J.B. Bultman, GDXI

president. "This reduces the cost and time involved in conducting

clinical trials."

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Marketing Muscle: Braun Expands

Market researcher Paul Braun has doubled his company’s

space at Research Park, adding 3,200 square feet for a total of 6,200

feet. He has also doubled his staff from what it was six months ago,

going to 10 full-time employees and 170 permanent part-timers.

"Our sales are up significantly this year," says Braun. Only

a small part of it, he says, was due to the election polls.

"Elections

counted for 20 percent, because we were doing work for national news

magazines, but I have work booked to April of ’99."

The Research Park location, because it is on a bus line, has helped

Braun recruit part-time interviewers; about one-fifth use the bus.

For such clients as national news agencies, television networks, and

local and national research firms, the firm does business-to-business

research during the day, and consumer research on weekends and

evenings.

Braun has been working in the research field since 1979. He quit a

New York job five years ago because he was working 19 hours a day,

seven days a week. He and his wife were starting to raise a family,

so he took a job with a Princeton-based market research firm, was

fired after 15 months, and founded his own firm to be a direct vendor

and a contract company for telephone market research. At that time,

three years ago, the name was Leitner/Braun.

Now Braun subcontracts to 40 research firms ranging from Mathematica

on Morgan Lane to Global Strategy Research in Manhattan. Other clients

include Princeton Survey Research, American Opinion Research, Research

Strategies, and Mapes & Ross. Clients not related to the research

industry include Peterson’s, Prudential, and Wisconsin-based Mosaic

Funds, a firm which helps parents anticipate college costs.

Like every young company Braun Research has had growing pains. "I

sleep so little, as it is, all someone has to do is breathe the wrong

way," he confesses. Earlier this year he had some unnerving

warnings

from his accountant, Jim Rose of Rose Dultz Associates. "He made

me listen to the possibility that in six months — with a three

paycheck month in October — I might be out of business." Rose

offered the help of a factor, a lender who advances cash in return

for buying receivables. Braun decided against it and, as it turned

out, he believes he made the right choice.

Timing, he says, is one of his strengths. "I knew when I needed

to buy my partner out. Now I know I have to make investments in

people.

When we get money, we give it to them. The people I have hired are

mostly my friends and people I have known for many years," says

Braun. "It is an ensemble cast. They all have ambitious visions

on what their careers are going to be like."

"It comes down to what a company exists for," says Braun.

"It’s the `vision thing’ if you will. I try to be a different

kind of boss. I let people try to be comfortable with their own

philosophy.

I wouldn’t mind being rich but I’m not. My goals are to send my kids

to college and to retire."

A Brooklyn native who majored in political science at Brooklyn

College,

he lives in Princeton with his wife, Carol Miller Braun (who works

in the emergency road service phone department for Triple A), and

they have two preschool children, Amanda and Stephen. His father,

Murray Braun, was a coat cutter in the garment industry. Says Paul:

"He busts his buttons when he sees his name on the door."

Braun Research Inc., 271 Wall Street, Princeton

08540. Paul A. Braun, president. 609-279-1600; fax, 609-279-1318.

E-mail: braunres@aol.com.

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Virtual Classes Grow: STG & PLS

Web-based training is growing as fast or faster than

the Web itself. These virtual learning programs provide documentation

of the learning process and spur productivity, so they can be a

cost-effective

solution for the in-field training of decentralized sales forces.

They are also useful for helping trade groups document professional

accreditation courses, as well as for colleges and universities

offering

virtual instruction. The courses can be speedily published and easily

revised, provide measurable results, and are customizable to any skill

level.

The United States market for virtual learning programs was $197

million

last year, says International Data Corporation, but is expected to

grow to more than $6 billion by 2002. An IDC analyst described it

as "one of the most dramatic growth industries in existence today,

showing clear signs for long-term viability."

In line with this growth, two virtual learning companies in Princeton

are expanding. STG International LLC added three people in the last

year and has changed its name, to more accurately reflect its

business,

to VLearn International. Princeton Learning Systems is growing its

staff from 13 to 18 and has physically expanded, from Forrestal

Village

to State Road.

VLearn International, 4365 Route 1 South, Princeton

08540. Thomas D’Innocenzi, president & CEO. 609-514-5000; fax,

609-452-7009.

Home page: http://www.vlearn.com.

"Our product is a virtual learning product," says Jim Scott,

the chief financial officer of the 11-year-old VLearn International.

It had started out as Systems Task Group, became STG Technology, and

then acquired Darien Technology before changing its name. The firm

has added three employees in the past year.

Among VLearn’s contracts are one for doing English language training

over the Internet through a Taiwan-based program called Merica Chain

Group, Asia’s largest English training and test preparation company.

VLearn also has a contract with the ministry of education in Singapore

to develop curriculum for Internet training in the classroom.

On another front, it is one of the few companies to provide a tool

over the Internet to get the employees involved in solving the Year

2K problem to make them part of the solution. Called PC Aid 2000 it

helps workers at multinational companies assess their PCs to identify

hardware and software that needs to be upgraded. It also provides

real-time reporting and control of the PC problem (U.S. 1, March 12,

1997, and August 19, 1998).

Princeton Learning Systems, 707 State Road, Suite

212, Princeton 08540. William J. Healy PhD, president. 609-924-2882;

fax, 609-520-1702. E-mail jnazario@fsu.org. Home page:

http://www.fsu.org.

Princeton Learning Systems develops financial and securities industry

compliance and education systems under the aegis of Financial Services

University (FSU), a Web site configured to perform all the functions

of a virtual campus (U.S. 1, September 4, 1996; March 12, 1997; and

May 27, 1998). At the 1996 founding, William J. Healy and Steven Haase

aimed for $45 million annual sales and a before tax profit of $15.6

million by 1999.

Thomas Crawford has come from J.H. Cohn to be senior operating

officer,

and Juan Villegas, formerly webmaster for Merrill Lynch’s in-house

Learning Network, is director of learning technologies. Just

announced:

William J. Lombardo as executive vice president of sales and

marketing.

New contracts have added 30,000 employees to the FSU user base.

"Studies have shown that because new training technology is

customarily

self-paced, multimedia, interactive, and mastery-based, it is capable

of increasing retention by 40 percent," says Healy. "Since

it can be accessible after hours, time-off-the-job as well as actual

learning time can be reduced by as much as 60 percent and delivery

costs up to 70 percent."

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Taken Over? Don’t Despair

Princeton Hydro LLC, 80 Lambert Lane, Lambertville

08530. Stephen J. Souza, president. 609-397-5335; fax, 609-397-5333.

E-mail: phydro@worldnet.att.net.

Princeton Hydro LLC turns out to be a remarkable exception to the

rule that — when companies are acquired, re-engineered or

downsized

— employees are left out in the cold. In July, 1996, Post Buckley

Schuh & Jernigan (PBS&J), based in Miami, bought out the Quakerbridge

Road office of Coastal Environmental Services. In July of this year

PBS&J decided it was not a "good fit" and closed down the

shop. Another tragic story? Far from it.

The nucleus of the Quakerbridge Road office — Stephen Souza, Mark

Gallagher, and Geoffrey Goll — negotiated with PBS&J and bought

the company from them. They continued operations under a new name,

Princeton Hydro. PBS&J agreed to transfer all existing backlog, plus

the office furniture and sampling equipment, to the new company, which

continued to conduct business at Quakerbridge Road. On September 1

PBS&J officially ceased its operations and Princeton Hydro opened

its offices in Lambertville.

Princeton Hydro now does business as a water and wetland resources

management consulting company. The staff includes an engineer, wetland

scientists, aquatic biologists, and environmental scientists. Stephen

Souza, president of Princeton Hydro, got his Ph.D in ecology/fishery

biology, from the University of Connecticut. He did his graduate

studies

in Environmental Science at Rutgers University after majoring in

marine

biology from the University of Massachusetts, Class of ’74. Souza

is responsible for the direction and coordination of all lake, pond,

and reservoir projects.

Mark Gallagher, senior vice president, is responsible for the

supervision

of a broad variety of environmental assessment activities, primarily

involving wetlands and wildlife habitat elements. He has a bachelor’s

in biology from Moravian College, Class of ’77, and a master’s degree

in botany and plant physiology from Rutgers. Geoffrey M. Goll, program

director, environmental engineering, specializes in the development

of engineering designs and permits for the preparation of applications

for state and federal agencies. He got his bachelor’s in civil

engineering

from Rutgers University, Class of 1990.

Princeton Hydro provides consulting, design, and implementation

services

in the areas of lake and wetland resources restoration and management

to both private and public sector clients. Clients include Princeton

Township, Merrill Lynch, OENJ Corporation, Merck, and lake

associations

throughout the tri-state region.

Millennium Science & Engineering, 2 Bradford Court,

Cranbury 08512. Dean Ritts, environmental engineer. 609-716-0809;

E-mail: dritts@mindspring.com.

The Clean Air Act is alive and well in New Jersey, says Dean Ritts,

and he is here to help you cope with it. "From what I have worked

with New Jersey regulators, they have been very diligent about

following

what they were supposed to be doing," says Ritts. He opened the

New Jersey branch of this Virginia-based environmental engineering

firm that does industrial waste water treatment and air quality

engineering.

The president of Millennium Science & Engineering, Andy Loven, had

been president of Engineering Science, which has since evolved into

Parsons Infrastructure and Technology, the firm that has the contract

to do the motor vehicle inspections in New Jersey. This office serves

such clients as American Cyanamid and Merck. "We keep companies

from going afoul of the Clean Air Act," says Ritts, "by

inventorying

emissions and designing air pollution strategies."

A biology and history major at Duke University, Class of ’84, Ritts

has a master’s in civil engineering from San Jose state. He worked

for Acurex Corporation, doing air quality engineering, and engineering

science in air quality and waste water treatment engineering. He has

been with Millennium for 18 months; his wife, Rosalyn Ritts, is a

director at Sarnoff. They met at Duke, where she earned her biomedical

engineering degree. They have two children, ages nine and five.

Asked for an example, Ritts tells of a company in Georgia that was

worried over its compliance with the EPA’s risk management program.

"We showed them that if they reduced their inventory of propane

they would not have to comply with the program. For a few hundred

dollars of our time we saved them thousands of dollars of

paperwork,"

says Ritts.

"There is a fine line between giving the engineering solution

versus doing what the really customer needs to solve a problem,"

Ritts says. "For instance, you can buy a Cadillac or a Volkswagen,

but the Volkswagen may be the best choice for a particular

client."

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Expansions

Alpha Microsystems/Support Works, 2525 Route 130,

Cranbury Plaza, Cranbury 08512. Thomas Palmisano. Home page:

http://www.alphamicro.com.

After the recent down-sizing at Dow Jones, Thomas Palmisano left with

some of his cohorts in the tech support group to join this 20-year-old

computer firm. Palmisano is establishing a call center to diagnose

unbranded products, on warranty, for hardware and software problems.

It is connected with Alpha’s service center in Edison. The service

center has no telephone number available to the general public but

the company may be reached in California at 714-957-8500.

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Management Moves

Rhodia Inc., Prospect Plains Road, CN 7500,

Cranbury

08512-7500. David Eckert, president, North American chemicals.

609-860-4000;

fax, 609-860-0074.

Gilles Grenier has moved from France to be general manager of Rhodia

Silicones North America. Silicones are used for release coatings for

pull-off protective backings on self-adhesive labels and envelopes,

and also for fluids and sealants for industrial markets. The division

also makes and markets room temperature vulcanizing agents for the

electronics, aerospace, and automotive industries. Rhodia is a

subsidiary

of Rhone-Poulenc S.A. The campus at Prospect Plains Road houses the

division headquarters for surfactants, fine organics, food

ingredients,

water soluble polymers, latex and specialty polymers, and phosphorus

products.

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Crosstown Moves

Landscape Maintenance Services Inc., 306 Wall

Street,

Research Park, Princeton 08540. Thomas D. Dario, president.

609-252-1501;

fax, 609-252-1503.

The seven-person landscape maintenance office moved from 1,700 feet

at Princeton Meadows Office Center to similar-sized space in Research

Park and has a new phone and fax. It is the wholly owned subsidiary

of Medford-based Canterbury Corporate Services.

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Leaving Town

First Union National Bank, 304 Princeton-Hightstown

Road, East Windsor 08520. 609-394-4753; fax, 609-394-4758.

As a result of its merger with CoreStates, First Union National Bank

closed this office on November 6 and has sold it for $800,000 to an

investor in Pennsylvania. The 2,500-foot building has 12.4 acres.

Glenn Blumenthal represented First Union National Bank, and the

listing

brokers were Sab Russo and Terry Lencheski of CB Richard Ellis Central

New Jersey, based in Iselin. The bank retained a branch at 29

Princeton-Hightstown

Road.

Fund for Public Interest Research, 119 Somerset,

New Brunswick 08903. Alison Thornton, director. 732-214-8272; fax,

In the fall, as planned, the Witherspoon Street office closed and

consolidated with one in New Brunswick. It employs college students

to raise awareness and campaign for causes such as the Sierra Club

or issues sponsored by the Public Interest Research Groups or PIRGs.

Sandler Sales Institute, 357 Kilburn Road,

Langhorne

19047-1949. John S. Punyko, president. 215-757-5644; fax,

215-757-7923.

E-mail: jpunyko@ix.netcom.com.

John Punyko has moved his sales training firm from 600 Alexander Road

to Langhorne.

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Death

Howard Stone, 37, on November 12. He was an assistant

professor of physics at Princeton University.

Corrections or additions?


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