Also on the Web: Financial Statements

Expansions

Contracts Awarded

Crosstown Moves

Down Sizing

Leaving Town

Management Moves

Deaths

Corrections or additions?

These stories by Kathleen McGinn Spring and Barbara Fox were

prepared for the March 7, 2001 edition of U.S. 1 Newspaper. All rights

reserved.

Life in the Fast Lane: Expert Plan

With company-funded pension plans joining lifetime

employment as the stuff of corporate nostalgia, tax sheltered 401(k)

plans have become the cushion employees count on to ensure a

comfortable

retirement. Access to the plans is taken for granted by employees

of most large companies. Yet, says Win Cody, founder of ExpertPlan,

a firm that offers online 401(k) plan administration, fully 80 percent

of small and mid-sized employers do not have 401(k) plans in place.

The plans are expensive to set up, and expensive to administer, Cody

gives as the reason that so few companies with 5 to 500 employees

offer them. ExpertPlan uses the Internet to cut 401(k) costs and offer

participants round-the-clock access to information on their accounts.

At a time when many Internet-based businesses are finding it difficult

just to keep going, ExpertPlan is closing on its second major round

of funding — $1.7 million from Bridge Partners and other investors

— spreading out in new offices, and working toward a fivefold

increase in employees.

The company started in July, 1999, in 900 square feet in the Trenton

Business and Technology Center. In December it moved into 7,000 square

feet in the Windsor Corporate Park in East Windsor. ExpertPlan has

19 employees, up from 10, and expects to have 100 by the end of the

year.

Separating his company from the dot com crowd, Cody says "we don’t

need to advertise at the Super Bowl." Operating on a

business-to-business

model, the company avoids the mass marketing costs that have sunk

a number of Internet companies. It targets a limited universe of

clients:

just banks, insurance companies, brokerage houses, fund companies,

and individual financial planners involved in selling 401(k)s and

similar retirement plans. Cody says it is difficult to determine

exactly

how much employers pay for 401(k) set-up and administration because

some of the fees are listed up front and others are included in the

costs of the mutual funds in the plans. As a rule of thumb, however,

he says ExpertPlan cuts the cost about in half.

For a company with 50 employees, ExpertPlan charges $750 to set up

a 401(k) plan and $750 a year to administer it, plus $30 for each

enrolled employee. It does not offer its service directly to companies

or to individuals.

Beyond cost savings, ExpertPlan offers the advantage of real-time

access to 401(k)s. The only contact many employees — even those

at large companies — have with their 401(k)s is a quarterly

statement.

Through the Internet, ExpertPlan gives clients’ employees the ability

to check balances, transfer money among funds, revise personal

information,

see a contribution summary, request loans, and more — at any hour

of the day, any day of the year. In the fall the company added access

to plan information by phone or wireless device.

An application service provider (ASP), ExpertPlan keeps its clients’

401(k) plans on its servers. "We do all the record keeping and

administration," Cody says. This frees up financial planners,

allowing them to spend their time advising clients on which mutual

funds or money market funds to include in their 401(k).

Like many other business-to-business Internet companies,

including PayTrust, the Lawrence-based online bill paying company,

ExpertPlan offers its service to some clients as a private label

product.

Brokerage firm Legg Mason Wood Walker, for instance, signed on with

ExpertPlan in October. And while all 1,300 of its affiliated brokers

can sell ExpertPlan 401(k)s to their clients, the clients’ employees

will see "Legg Mason 401k Online" when they log on to check

up on their retirement assets. Other private label clients include

Gruntal & Co. LLC and Round Hill Securities. Cody says ExpertPlan

is close to signing up two more private label clients.

Some clients will forego a private label site, and will choose to

have ExpertPlan be their online 401(k) presence. However, says Cody,

the majority of the company’s revenue is likely to come from private

label clients. He expects ExpertPlan to achieve profitability by the

middle of next year.

The company’s competitors include some mega firms such as Fidelity,

which sells 401(k) plans made up only of its own assets. Cody says

ExpertPlan’s headstart in online 401(k) set up and management is an

advantage. In any case, he says, "401(k)s are a huge

business."

He believes there is room for a number of players.

In addition to 401(k), ExpertPlan sells set up and management of

403(b)

retirement plans for schools and non-profit organizations and 457

retirement plans for government entities.

Cody, a graduate of Massachusetts Institute of Technology (Class of

1982), holds an MBA from the University of Connecticut. Before

starting

ExpertPlan he was vice president and chief information officer of

the Copeland Companies, the retirement planning division of Citigroup.

A direct descendant of John Winthrop, first governor of the

Massachusetts

Bay Colony, he is also related to an ancestor of Buffalo Bill Cody.

He lives in Cranbury, with his wife, Linda, an environmental scientist

who teaches physics at Monroe High School, and their two young

daughters.

— Kathleen McGinn Spring

ExpertPlan, 50 Millstone Road, Windsor Corporate

Park, Building 400, Suite 100, Cranbury 08512. Winthrop Cody,

president.

609-918-2500; fax, 609-918-1328. Home page: www.expertplan.com.

Top Of Page
Also on the Web: Financial Statements

Another web-based financial platform in the business

to business market has expanded to 40 employees on Lenox Drive.

StatementOne

delivers financial statements and performance reporting to financial

advisors and their clients.

Founded by Lou Orban eight years ago as Fundscape, StatementOne

has developed DOS-based software on an Oracle database. "As

computers

became possible, we migrated to the graphical interface that we use

today, and the maturation of the Internet enabled us to provide

real-time

delivery of the product," says Dave Orban, a company spokesperson.

Clients are the broker dealers who provide the software to the

financial

advisors, who use it for managing clients’ investment portfolios and

reporting on those portfolios. "We take daily live data

feeds,"

says Orban. "Every transaction gets put into a massive data base,

so the advisor can do performance reporting on the fly from any

computer

that connects with the Internet, in real time. That access can also

be set up for viewing by the investor."

Current solutions to the problem of getting snapshots of an investor’s

holdings are called screen scrapers or aggregators, Orban says.

"The

difference is that our data feeds are direct feeds from the

transaction

sources. A screenscraper has the individual’s password and takes a

static picture of a particular holding at that point in time, but

it has no transactional history."

StatementOne takes the assets transacted through many different

product

companies, says Orban, to provide a more detailed and indepth picture.

"We give the investment advisor a daily time-weighted rate of

return. The lead lag in the processing information and what actually

shows up in the bank statement is delayed by a significant amount

of time, and we are the only ones doing a daily direct feed. Also,

our data is cumulative and has a year or two year’s worth of

transactional

history. And we are maintaining the information in perpetuity."

Currently, says Orban, investors are deluged with as many as a dozen

statements. "This is the first time anyone has been able to look

at the stuff in a consolidated way. And investors can create

mini-portfolios

of their assets, with some assets allocated for education and some

for retirement."

Gerber went to University of Florida, Class of 1977, and worked at

Merrill Lynch before founding a pension consulting firm that he sold

in 1989. In 1993 he started another pension consulting and performance

reporting firm, Monitor Advisory Services, which premiered Fundscape

the following year.

Among StatementOne’s backers are Allianz and Aetna, and $17 million

in venture capital has been provided by Desai Capital, Boston

Ventures,

Charterhouse International, and Axiom. Among the major accounts are

ING Advisors Network, Long Grove Trading Corporation, and Financial

Service Corporation. "The need in the market is huge," says

Orban. Soon, he predicts, consolidation will be the norm rather than

the exception. "Tracking performance in a timely way enables the

financial advisor to provide a more detailed level of advice with

a much higher probability of success."

StatementOne, 1009 Lenox Drive, Suite 103,

Lawrenceville

08648. Lou Gerber. 609-620-5800; fax, 609-620-5801. Home page:

www.statementone.com.

Top Of Page
Expansions

Niksun Inc., 1100 Cornwall Road, Monmouth Junction

08852. Parag Pruthi, president and CEO. 732-821-5000; fax,

732-821-6000.

Home page: www.niksun.com.

Niksun Inc., 111 North Center Drive, Monmouth

Junction

08852. 732-821-5000; fax, 732-821-6000.

Niksun Inc. will have a grand opening on Thursday, March 15, for its

expansion to Cornwall Road from 111 North Center Drive. In less than

one year it has doubled its headcount in New Jersey to 100 (157

worldwide)

and now has 15,000 square feet at the two locations. The North Center

Drive facility will be the research site, and administration will

be housed on Cornwall Road. The company recently received $27 million

in second round financing, says Jayne Fitzgerald, vice president of

business development. Niksun does non-intrusive network monitoring,

performance and security enhancement and it provides equipment for

IP networks.

Newmark JGT Company, 10 Woodbridge Center Drive,

Woodbridge 07095-1408. Stanley Simon, principal. 732-750-4000; fax,

732-750-1290. Home page: www.newmarkre.com.

JGT has merged with Newmark, the third largest realty brokerage in

New York City.

Top Of Page
Contracts Awarded

EpiGenesis Pharmaceuticals Inc., 7 Clarke Drive,

Cedar Brook Corporate Center, Cranbury 08512. Jonathan W. Nyce PhD,

chairman and CEO. 609-409-6080; fax, 609-409-6126. Home page:

www.epigene.com.

EpiGenesis signed a $100 million contract to license its experimental

asthma drug to a company in Tokyo, and it has an ongoing $15 million

deal with a firm in Italy, Chiesi Farmaceutici. The Japanese firm,

Taisho Pharmaceuticals, gets exclusive Asian rights to EPI 2010, which

has just begun U.S. clinical trials. The company focuses on

respiratory

diseases.

Top Of Page
Crosstown Moves

Child Care Connection, 1001 Spruce Street, Suite

201, Trenton 08638-9984. Nancy Thomson, executive director.

609-989-7770;

fax, 609-989-8060. Www.childcareconnection-nj.org

The nonprofit resource agency has moved from Pennington Road. It

offers

recruiting and technical assistance to potential day care providers

and childcare training.

The Victor Company, 791 Alexander Road, Princeton

08540. Victor Murray, president. 609-452-0610. Home page:

www.victor-co.com.

Victor Murray, the commercial real estate broker, has moved his

three-person

six-year-old firm from the Forrestal Center.

Wenczel Consulting, 4 Princess Road, Lawrenceville

08648. Mike Wenczel, president. 609-896-9110; fax, 609-896-9114.

Www.w-consult.com.

Last month this consulting firm moved from 234 Nassau Street to

Princess

Road. Mike Wenczel and Martin Olech do Internet application

programming.

Top Of Page
Down Sizing

Medimation Inc., 27 Jefferson Plaza, Princeton

08540. Ed Jones, owner. 609-688-9082; fax, 609-688-9084. Home page:

www.medimationinc.com.

The medical animation firm has moved from Jefferson Plaza. The owner

did not return calls asking for the current address.

Top Of Page
Leaving Town

Airgroup Express, 2127 Route 33, Lexington Square

Commons, Hamilton Square 08690. 609-291-8600; fax, 609-291-4800.

Airgroup Express, a company that does air shipping for the exhibit

and trade show industry, has outgrown its space in Lexington Square

Commons and moved to 2,000 square feet at 231 Crosswicks Road in

Bordentown.

Edward P. Boutross Linens, North Main Street,

Building

15, 64 Hightstown Road, Suite 228, Princeton Junction 08550.

609-897-1000;

fax, 609-897-1002.

This business has moved to Nevada. It was the headquarters and

distribution

center of a firm specializing in hand-painted cottons, napkins,

towels,

and baby bedding.

Junior Achievement of New Jersey Inc., 1101 Bristol

Road, Mountainside 07092-2301. 908-789-7676. Home page:

www.ja.org.

The agency moved from Brunswick Pike.

The Medicines Company, 212 Carnegie Center, Suite

206, Princeton 08540. 617-225-9099; fax, 609-720-9810.

This pharmaceutical services company moved from the Carnegie Executive

Center to Cambridge, Massachusetts.

ACE Audiovisual, 11 Deer Park Drive South,

Princeton

Corporate Plaza, Suite 100, Monmouth Junction 08852. Michelle Edwards,

manager. 732-355-0355; fax, 732-274-0844. Www.aceav.com.

The audio visual firm, billed as the full service audio visual dealer

in the tristate area, closed its Deer Park Drive office and is

operating

from West Caldwell headquarters. It offers sales, service, and rental

for projectors, plasma screens, and videoconferencing systems.

Top Of Page
Management Moves

YWCA Princeton, Paul Robeson Place, Princeton

08540.

Eileen Conway, executive director. 609-497-2100; fax, 609-683-5674.

Home page: www.ywcaprinceton.org.

Eileen Conway has moved to the position of executive director. She

served in that position on an interim basis for four months. A

graduate

of the State University of New York at Stony Brook, she has a master’s

degree from the College of New Jersey and previously worked at the

Visiting Nurse Association of the Delaware Valley.

Top Of Page
Deaths

Charles Jens Keck, 62, on February 25. He had been a

manager

at IBM in Dayton.

Lin C. Cha, 68, on February 25. He had worked at FMC in

Route 1 North.

Leroy Irvin McCoy, 50, on February 27. He had worked at

Merrill Lynch on Scudders MIll Road.

Frank Sannella Jr., 64, on March 1. He was founder and

president of TS Banking at the former Trenton Savings Bank and vice

president of Business Alliance Capital Corp. on Alexander Road.

Gail L. Gay, 64, on March 4. She was a secretary at

Mathtech

at the Carnegie Center.

Corrections or additions?


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