ETS Outsources Again


Meadows Sold

Kornhauser’s Marathon Memos


Corrections or additions?

These articles were prepared for the November 3, 2004

issue of U.S. 1 Newspaper. All rights reserved.

Life in the Fast Lane: Orchid BioSciences

For the first time since it was founded in 1995, Orchid BioSciences

made a quarterly operating profit, which CEO Paul J. Kelly labels as

"a major milestone on our path to sustainable profitability." The

company expects to have revenues of more than $60 million this year.

In 2004 Orchid’s stock price has been in the $7 to $9 range, on an

adjusted basis, following a one for five stock split. The current

price is just under $10. Third-quarter losses narrowed from two cents

per share from 38 cents per share for the same quarter last year.

Revenue for this quarter rose to $16.4 million from $11.8 million last

year due to increased testing volume.

Orchid supplies identity genetics testing services for the forensic

and paternity DNA testing markets and for public health, and it also

does animal DNA testing for food safety. With Cellmark and GeneScreen

brands, it has laboratories in the United States and the United


Among the recent announcements:

In October Thames Valley Police, the United Kingdom’s largest

non-metropolitan police force, gave Orchid an exclusive three-year

contract for forensic DNA testing services.

In September Orchid launched "IDSecure," a worldwide service to

guarantee that workers on high-risk assignments could be accurately

identified in case of an emergency or accident.

In August Orchid agreed to create DNA identity profiles for the

Kinsearch Registry, which aims to reunite siblings following adoption.

In July Orchid won a competitive bid to test felons for Illinois, the

largest state contract to date.

"We are very encouraged by the recent Congressional enactment of the

President’s DNA Initiative, which provides significantly increased

funding to private forensic laboratories like Orchid to process DNA

backlogs and, in turn, help to improve the criminal justice system,"

says Kelly.

Orchid BioSciences Inc./Cellmark (ORCH), 4390 Route 1 North, Princeton

08543. Paul J. Kelly MD, CEO. 609-750-2200; fax, 609-750-6400. Home


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ETS Outsources Again

Having decided to outsource the management of its supply chain,

Educational Testing Service signed deals totaling $142 million over

two years with two subcontractors, including Accenture.

Accenture will manage all aspects of ETS’ supply chain including the

printing, publishing, warehousing, distribution, tracking and shipping

of tests and test materials globally. It has more than 100,000 people

in 48 countries ( Also participating in this

contract is Germany-based Kuehne & Nagel, which has 20,000 employees

in 96 countries (

Since Kurt Landgraf took over at ETS, the number of tests the company

administers or scores has gone from 10 to 24 million, yet ETS does not

own its own modern supply chain technology. Accenture and Kuene &

Nagel will provide and install the technology.

"By working with Accenture to manage our supply chain functions, we

can place even more focus on our core mission of advancing quality and

equity in education through fair and valid testing," said Landgraf in

a press release. "We also expect that the efficiencies gained through

this agreement will allow us to streamline our costs and provide world

class service to our customers and clients."

This is not Landgraf’s first experience with outsourcing. As soon he

came to ETS, he outsourced all the information technology. Since then,

the number of IT workers that ETS uses has increased. In a Times of

Trenton article he pointed to this example to reassure approximately

260 production and delivery workers that they will not lose their

jobs. On January 1 they will go to work on January 1 for Accenture or

Kuehne & Nagel, and they are guaranteed to keep jobs, with the same

pay and good benefits, for at least a year. After that time, when the

new technology is installed, the ETS work may have increased, or the

workers could work for the new companies in another location.

The production and delivery outsourcing move comes a month after ETS

decided to outsource some of its computer-based testing services,

renewing its contract with Thomson Prometric to the tune of $1 billion

over 12 years. ETS will more than triple the number of centers it

uses, tapping Thomson’s 4,000 online testing centers worldwide. ETS

now uses 1,000 of them under a $500 million contract that expires in

2005. Based in Maryland, Thomson Prometric bought an ETS subsidiary,

Capstar, in August.

Educational Testing Service, Rosedale Road, Princeton 08541. Kurt F.

Landgraf, president. 609-921-9000; fax, 609-734-5410. Home page:

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New Jersey CURE Auto Insurance, 214 Carnegie Center, Suite 101,

Princeton 08540. Lena Chang, president and CEO. 609-520-0800; fax,

609-520-0030. Home page:

New Jersey PURE, 214 Carnegie Center, Suite 301, Princeton 08540. Lena

Chang, president and CEO. 609-951-8547; fax, 609-951-0091. Home page:

Medical malpractice insurer New Jersey PURE (New Jersey Physicians

United Reciprocal Exchange) has joined its sister company, New Jersey

CURE, in an expansion from Roszel Road to the third floor of 214

Carnegie Center. NJ CURE has 200 employees and 45,000 square feet,

while NJ PURE, founded in 2002, has 15 employees and 10,000 square


The combined companies’ former space at 13 Roszel Road, a building

owned by a real estate company controlled by James Sheeran (chairman

of both companies) and Lena Chang (president and CEO of both

companies), is being refitted for small to medium tenants.

"The new office offers more space to accommodate our continued

expansion and growth," says Eric Poe, spokesperson.

NJ PURE was founded by Sheeran, a former state insurance commissioner,

and Chang, an actuary. It is the only one of the state’s new medical

malpractice insurers to post an underwriting income gain in 2003, its

first full year of operation, according to Poe.

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Meadows Sold

After owning Princeton Meadows Shopping Center for seven years,

Philadelphia-based AMC Delancey Group has sold it for $10 million. The

buyer was Princeton Meadows Holdings, LLC. The center is 100 percent

occupied, with an Asian grocery as the anchor store.

The stores include Asian Food Markets of Princeton, Bagel Street,

Business Xpress, Desai Corner, Eckerd Drug, Hair Plus Salon, Meadows

Optician, Prime Tyme Video, Shades of Summer LLC, and Taru’s Dry


Top Of Page
Kornhauser’s Marathon Memos

When you watch the New York City Marathon on Sunday, November 7, keep

an eye out for 60-year-old Alain Kornhauser among the thousands of

athletes on the 27-mile run. If you don’t see him on the television

screen, look for him on his web page at ALK Technologies


Anyone will be able to track where he is and send him messages along

the way. With his Bluetooth receiver pinpointing his position and his

Windows Mobile-based Smartphone wirelessly connected to the Internet,

his position will be relayed to ALK’s live web server. The sender of a

short message can specify up to four possible single-word responses,

so that Kornhauser needs only to press a button to respond.

Kornhauser, who teaches engineering at Princeton, started ALK

Associates in 1979, and his wife, Katherine Kornhauser, is president.

He is also active in the Center for N.J. Transportation Information &

Decision Engineering (, which aims to provide real-time

information about traffic on New Jersey roads.

Top Of Page

Edward T. Cone, 87, on October 23, of complications following heart

surgery. He was a composer, author, and emeritus professor of music at

Princeton University.

James B. Day, 78, on October 24. He had a public relations firm,

Communication Resources, in Trenton, and taught Trager body/mind

reduction at Health Choices Massage School.

Dominick Anthony Iorio, 73, on October 31. He was dean emeritus at

Rider University, College of Liberal Arts and Sciences.

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