Founder Vacates: Escalon Moves

Mettler’s Move

New Integra CEO

A Better Way to Run the Railroads?

Scout to Chamber

At 55 Plus, a New Career


Corrections or additions?

Life in the Fast Lane: PVI

These articles by Peter J. Mladineo and Barbara Fox were published

in U.S. 1 Newspaper on January 7, 1998. All rights reserved.

In the sports world it could be the best thing since

sliced bread — or the worst thing since 3Com bought the rights

to rename San Francisco’s Candlestick Park. But either way, Princeton

Video Image’s live video imaging system could someday be the next

step in the unspoken campaign to commercialize just about everything.

The product, called L-VIS, electronically inserts advertising banners

into live television broadcasts so that the image is viewable only

to the public watching the game on TV, not the spectators or the


PVI’s system uses a patented technique called pattern recognition,

in which a computer seeks out a particular area on a playing field

or stadium, and then pops a paid advertisement in that area every

time it appears on camera. So far, these virtual ads have appeared

on the backstop behind home plate or the midfield circle in soccer

matches, and in between the goal posts of a few preseason football


An initial public offering has given Princeton Video Image the funds

to get its patented electronic billboards on more screens than ever.

On December 16, the company sold 4 million shares of stock and raised

$28 million to build more L-VIS units and hire additional employees.

Shares of the stock, sold on NASDAQ under the symbol

PVII, opened at $7 and within the month increased to roughly $9. For

PVI, this IPO couldn’t come at a better time. A perennial money-eater,

the seven-year-old PVI has not experienced a profitable period in

its history, and by June 30 had an accumulated deficit of $19.5


A prospectus filed with Securities and Exchange Commission says that

PVI will "continue to incur substantial losses at least through

calendar year 1998 due to the significant costs associated with the

manufacturing, marketing and further enhancement of the L-VIS


The prospectus adds that for PVI to succeed, L-VIS will have to create

a new advertising paradigm that’s acceptable to a number of entities.

"The ability of the company to market successfully the L-VIS


will depend upon broad acceptance of its technology by at least four

distinct groups of participants in the sports advertising market:

television viewers, advertisers, broadcasters, and event rights


it says.

PVI has three large competitors, Symah Vision, a French company owned

by the LaGardere Group; SciDel, an Israeli concern owned by Scitex;

and Orad-ISL, an American venture owned by ISL and Ormat. Orad-ISL

uses a different method of delivering the virtual ads: the ad is


into an on-the-field camera, although experts claim that this system

could be foiled by a stadium shaking from applause. PVI has also


that larger broadcasting companies will most likely get into the ad

insertion fray should electronic billboards become an accepted medium.

PVI was started in 1990 as Princeton Electronic Billboard by Brown

Williams, chairman of the board, and Sarnoff alumnus. Williams


the patent for pattern recognition in 1993, and in 1995 changed the

company’s name to PVI. In January of 1996, PVI elected a new president

and CEO, Douglas J. Greenlaw, an MTV Networks alumnus. Last fall it

moved to 16,000 square feet at 15 Princess Road (U.S. 1, October 22)

with plans to increase its staff from 30 to 50.

L-VIS hit the market in 1995 and was first used by Comcast during

a Trenton Thunder broadcast. Its first major league contract was with

the San Francisco Giants, and new contracts reportedly have been


with the Giants and the San Diego Padres for this year’s baseball

season. Industry sources say that PVI has also approached the NFL

for possible deals. The company itself confirms that the opening of

the 1998 baseball season will mark the introduction of animation,

special effects, and 3-D, in addition to the static banners the firm

has previously produced.

Investing in PVI has been likened to providing


venture capital" to a start-up — but this venture is fairly

promising. "They seem to have the best technology out there,"

says one investor familiar with the company. "You’d have an


to make five to ten times on your money — if they perfect it and

the patents hold up."

The need for such a system is obviated by the rising costs of


rights, and unlike selling ad banners on the Internet, it requires

very little explaining to advertisers who are eager to find a way

to outsmart channel-surfers. Virtual ads could also, theoretically,

cover up mechanical billboards located at the stadium that carry local

ads — space that national broadcasters have historically begrudged

local merchants.

Andy Kienzle is the principal of a Hamilton-based multimedia firm,

Television Ideas and Software Inc., and was formerly president of

the video trade association, Moving Image Professionals. Kienzle feels

that PVI has found an promising niche. "They have something


he says. "They have a technology that should be a big money maker

because it’s a way of generating additional revenue for a lot of these

sports teams and providing additional opportunities for sponsorship

and advertising that a lot of companies are looking for. Is this


that the viewing public will get into? That’s another question. But

I think the revenue drivers are there."

PVI, he adds, should be a viable venture because there is no lack

of demand for places to stick ads. "These people have an ability

to put ads in front of a large audience, and that’s a valuable thing

for an advertiser, and for somebody who owns the space it’s a valuable

way to get revenue. I like the economic prospects."

How intrusive are the virtual ads? A sample video of PVI’s work


that virtual ads may be little more than new entries added to the

omnipresent commercial clutter. If it’s any indication,


electronic billboards will probably annoy viewers until they become

immune or desensitized. But, Kienzle adds, even if virtual ads are

somewhat intrusive, the public has a pretty high tolerance for



"Everybody accepts this encroachment to some degree," says

Kienzle. "Everything has a commercial affiliation — that


stopped it from happening. I don’t think this is going to stop the

electronic billboard either."

Like the TV time-out, virtual ads will probably not go away just


they bother viewers, nor will they replace commercials. Does this

mean that viewers may someday have to adjust to seeing cans of


superimposed on Cheeseheads or McDonald’s Fries fluttering through

the air under Grant Hill’s Air Jordans every time he dunks? Probably

not. One of PVI’s R&D-related tasks of the moment, say experts, is

locating reasonable spots for virtual ads. It’s up to the public not

to watch.

— Peter J. Mladineo

Top Of Page
Founder Vacates: Escalon Moves

Escalon Medical Corp., 182 Tamarack Circle,


08558. 609-497-9141; fax, 609-497-0948.

After eight years Escalon has moved out of Princeton

and its founding CEO has moved on to another endeavor. "I had

eight great years and enjoyed it, and now I am doing something I


enjoy," says Sterling C. Johnson, the former CEO who left in April

to work for a Denver-based mergers & acquisitions firm, Grayson &


Escalon can now be reached c/o Richard DePiano, the new president

and CEO, at 351 East Conestoga, Wayne PA 19087, 610-688-6829; fax,

609-610-254-8958. "This was basically a strategic move to minimize

the cost of operation and to become more efficient in terms of onsite

personnel and manufacture," says DePiano.

A venture capitalist who was a long-time member of the board, DePiano

has signed a lease for Escalon in the space that had been occupied

by his venture capital firm — Sandhurst Company — which he

says is being "wound down." Of the seven people who worked

at the Tamarack Circle office, four will remain with the company,

including Shawn P. Mullen, director of sales and marketing. John T.

Rich, vice president of finance and administration, will leave on

January 15.

In November Escalon did a reverse split and reduced the number of

shares from 10.8 million to 2.7 million. At that time trading on


went from below $1 to around $5, and in the last two weeks of December

the stock went from $5 to $9.

Though Escalon had merged with a laser technology firm in 1996, it

sold off that business last year so it could concentrate on developing

systems for long term drug delivery to the eye that will eliminate

the problem of patients’ having to administer their own eyedrops after

surgery. Escalon has three patents (another one pending) on a tiny

device that sits under the eyelid, not felt or seen by the patient,

that can release drugs for two weeks or longer.

When Johnson founded Escalon in 1989, he had been director of business

development at the Liposome Company for five years. He named the


after his California hometown, Escalon, which means "stepping

stone" in Spanish. "One of the talents I have is building

businesses, and now I am helping other companies do the same


says Johnson. "I’m happy for the company to continue to grow and

the price to go up. The company had been undervalued for a long


Top Of Page
Mettler’s Move

Mettler-Toledo International, 69


Road, Box 71, Hightstown 08520-0071. Maurice Knapp, president.


fax, 609-586-5451. Home page:

Once 200 strong, the East Windsor outpost of the world’s largest maker

of scales and balances is now down to about 60 employees, and those

will be gone by the summertime. The firm is building an 80,000 square

foot headquarters in Columbus, Ohio. Fewer than 20 of the East Windsor

workers will move to Ohio and the rest are taking a severance package.

Founded in 1954 as the U.S. headquarters of a Swiss firm, it merged

with Toledo Scale in 1989, was bought by a prestigious private


firm, American European Associates, in 1996. It went public in


and its stock, traded on the New York Stock Exchange (MTI) started

at 14 and now hovers at 16 and 17.

Top Of Page
New Integra CEO

Integra LifeSciences Corporation, 105 Morgan Lane,

Box 688, Plainsboro 08536. Stuart M. Essig, president/CEO.


fax, 609-799-3297. Home page:

A 36-year-old Princeton University alumnus has been appointed


and CEO of Integra LifeSciences on Morgan Lane, but Richard E. Caruso,

the founder of the firm, remains as chairman. Stuart M. Essig was

formerly a managing director at Goldman Sachs, where he supervised

the medical technology practice.

Essig has an MBA and PhD in financial economics from the University

of Chicago and was senior merger and acquisitions advisor to a wide

range of domestic and international medical technology,


and biotechnology clients. His 10 years of health care experience

includes acquisitions, divestitures, strategic alliances, principal

investing, and capital markets.

"Stuart’s experience at Goldman Sachs will give Integra access

to a considerable wealth of relationships and business opportunities

that will help us to continue to fulfill our mission," says


The company’s stock trades on NASDAQ as IART; it develops and


BioSmart absorbable materials-based products that aim to control the

behavior of cells within a patient’s body to regenerate. Integra’s

Artificial Skin is the first in a series of products being developed

to regenerate body tissues (such as articular cartilage and peripheral

nerves) that usually do not regenerate themselves.

Essig’s four-year contract with Integra includes options for 1 million

Integra common shares plus deferred payment of 2 million Integra


The latter payment will result in a one-time, non-cash compensation

charge of about $6 million in the fourth quarter of this year.

Intek Stock BuyBack

Intek Diversified Corporation, 214 Carnegie Center,

Suite 304, Princeton 08540-6237. Robert Shiver, president and CEO.

609-419-1222; fax, 609-419-1221. E-mail:

After watching its stock drop from $5.75 to under $2 the mobile radio

services firm decided to buy back up to $1 million of its stock, which

trades as IDCC on the NASDAQ small cap market.

The firm offers specialized mobile radio services for public safety

facilities and owns Midland U.S.A. and Roamer One, which represent

175 markets in the United States, plus LMT and Securicor Radiocom

in the United Kingdom. The corporate office moved from Moorestown

to the Carnegie Center in September, 1997, and two staff positions

have been added for a total of eight.

Robert Shiver, chairman and CEO, says that the buyback is supposed

to be "another clear demonstrate of our confidence in Intek and

its future growth." The full stock repurchase would represent

about one percent of the approximately 42 million common shares


The stock traded 12 months ago at $5.75. Purchases will be made, he

says, "from time to time in the open market, through block or

privately negotiated transactions or otherwise."

Top Of Page
A Better Way to Run the Railroads?

It could be a classic case of the parent company feeling

abandoned by the spin-off, but no one’s saying it. Carl D. Van Dyke,

the president of MultiModal Applied Systems Inc., paused a few seconds

when asked about his former employer and direct competitor, ALK


and then offered what he called a politically correct explanation

of why he split off from ALK in 1992: "I felt that I wanted to

try my wings," he says.

ALK of 1000 Herrontown Road had no comment, although the suspicions

should be obvious: MultiModal, at 5 1/2 years old, is fast becoming

a major player in the transportation computing industry, the same

industry in which he once helped to define with ALK, the 40-employee

firm that employed him from 1985 to 1991.

Van Dyke, formerly a vice president at ALK, and fellow ALK alumnus

Ingrid Schultze Brandle have grown their company to 20 employees in

five years and are moving it from 3,000 square feet in Somerset to

6,200 square feet in Forrestal Village. MultiModal’s software package

is MultiRail, a Windows-based rail management system being used by

the majority of the major rail lines in the United States.

MultiRail users number only about a dozen but, Van Dyke explains,

he is aiming at the biggest rail companies. "Only 10 or 15


represent 95 percent of the rail business," he says. "Most

of them are our clients. There are 400 or 500 small railroads but

they aren’t the target of our business."

Steve Sashihara, the president of Princeton Consultants, which also

makes software applications for the transportation industries, says

that the rail industry presents a potential trove to software


"Running a rail network is a very difficult problem," he says.

"You’re running the police, the repair crew, you’re running


It’s not someone else’s problem — it’s all your problem, which

creates a great opportunity for railroads to optimize."

To help it compete with the road-based transportation industry,


explains, the rail industry was deregulated in the early ’80s and

has since bounced back and become competitive. "Part of this


is learning how to run with the best asset utilization it can,"

he says. "They’re looking for high powered tools."

MultiRail gets fairly high marks from those in an industry that talks

a lot about "asset utilization," says Sashihara.


you want to reposition your equipment to where the action is, but

at what price and when," Sashihara adds. "What MultiRail has

are models to help this planning and it’s worth a lot of money to

do it right."

Paul Stevens, president of Transport Dynamics at 103 Carnegie Center,

says that MultiRail is a "coherent way for the railroads to view

their scheduling requirements when planning the movement of freight

through the rail network." Within the railroad industry, he adds,

MultiModal is "viewed as being a very competent, knowledgeable

outside consulting service."

MultiModal and Transport Dynamics might both be converging on the

same light coming at the end of the tunnel. Transport Dynamics, which

has expanded from 5 to 18 employees since it was founded by Derek

Gittoes in 1995, specializes in real time decision support systems.

This is an area, says Van Dyke, into which MultiModal is currently

laying tracks. "The idea is to directly feed the databases that

drive the real time applications of the railroads," says Van Dyke.

MultiModal Applied Systems Inc., 125 Village


Suite 270, Princeton 08540. Carl Van Dyke, president. 609-419-9800;

fax, 609-419-9600. E-mail: URL:

Top Of Page
Scout to Chamber

Middlesex County Regional Chamber of Commerce,

1 Distribution Way, Monmouth Junction 08852. 732-821-1700; fax,


After five years of raising money for the regional


of the largest organization for women in the world, Nancy M. Ostin

has moved to take a job as the new executive director of the regional

chamber of commerce for Middlesex County. Though she knows most of

her constituents from previous volunteer work for the chamber, she

was introduced at a reception on Tuesday, January 6.

Ostin was development director for Delaware-Raritan Girl Scouts, and

she is credited with setting up the department, achieving a 200


increase in donations, and establishing a corporate advisory board

headed by Summit Bank’s Joe Semrod. Compared to other Girl Scout


"we are now regarded as having one of the premiere fund


efforts," says Ostin. Because of her success she has been invited

to teach development workshops for the national organization, Girl

Scouts U.S.A.

The Middlesex chamber’s former executive director, Joan Wisniewski,

had come out of retirement last fall after her first replacement,

Joseph Berger, left suddenly after one year.

Ostin grew up near Albany, New York, where her grandfather had founded

an advertising agency. She graduated from Emerson College in Boston

in 1982 but also earned a master’s degree in foreign relations from

the University of Aix-Marseilles. She has worked in various public

relations capacities for Renaud USA, Rhone Poulenc’s agricultural

division, Parker-Meridien, and the National Needlework Association.

"For me the chamber job was an opportunity to serve the community

I know and where I make my home," says Ostin. Her husband, Dan,

is president of National Software Resource Corporation, and they live

in East Brunswick with their four-year-old daughter.

Ostin believes she can transfer her five years of Girl Scout


in volunteer management skills, programs, and services to her new

position. "The real advantage is that I have worked for a very

mission-driven organization. Lots of businesses — if they had

that same kind of direction and focus — would benefit from clearly

knowing their mission."

Top Of Page
At 55 Plus, a New Career

Don’t talk to Murray Reich about retirement. He tried

that at age 55. Then he started a second career as a gerontology


and interviewed 70 retired corporate executives who were leading


productive, and influential lives. None had planned to do what they

were doing in retirement. All of their activities had resulted from

being asked to serve.

"You have to wait for someone who comes along who appreciates

your capabilities for a particular task," says Reich. "Each

of us, at our own level, are asked to do things. Some are reluctant

to get out, saying `it’s too early,’ or `it’s too late.’ The people

who say yes meet other people and have fun."

The process, says Reich, "is being asked to do something that

you don’t think you can do — which turns out to be interesting

and challenging. The role each of us has is to be open, to make


marketable, to put ourselves in situations where we get these


Reich practiced what he preached. Someone asked him to consult for

a plastics firm. "But I don’t know anything about these kinds

of plastics," I said. "`That’s OK,’ said the owner of the

firm. `I think you can do it.’" What he didn’t know did turn out

to be interesting and challenging. One thing led to another and now

he is president of Tyndale Plains-Hunter, a firm that develops leading

edge plastic applications and that recently moved into space at


Road. Reich now works seven days a week, stopping only to accomplish

an exercise program — walking and T’ai Chi.

Reich’s career went like this: after graduating from City College

of New York he earned a master’s in polymer chemistry at Akron


He obtained a master’s degree in counseling at Trenton State at night,

and, while doing part-time consulting in chemistry, a doctor’s degree

in gerontology education at Teacher’s College, Columbia. With that

degree he taught college courses in ethics, the psychology of aging,

and human development, and worked with the Institute on Aging at


He helped found "55 Plus," the group for men who are retired

or have flexible schedules that meets at the Jewish Center. His wife,

Naomi, taught kindergarten and then worked in a retail toy store;

they have two seven-year-old grandchildren.

But when someone asked Reich to work on "degradable mulch"

film he was lured back into plastics. It was serendipity, he


"I never planned to do the things I did. I sold mulch film to

farmers all over the country."

When the technology was licensed to another company, the owner of

another company recruited Reich as a consultant, Reich started a


polymer project. Two years later the owner asked him to run the


and now he is president of Tyndale Plains-Hunter. The firm had been

doing research in 900 square feet in Ringoes but for production work

has moved to 3,700 feet at Princess Road and has made a significant

investment in equipment. The six-person shop designs and produces

plastic granules (high slip, high water absorptive polymers) for


and cosmetic applications.

We have three or four different materials that can make

up to 10 or 20 different products; we design the polymer composition

for a particular application," says Reich. "We make the


here and then granulate it for most customers for coatings, wound

dressings, and one area of cosmetics." The granules sell for $10

to $50 a pound and might be used, for instance, in a solution that

could coat a guide wire in a catheter.

Reich is in charge of the bookkeeping, the marketing, supervision

of R&D, and writing the patents — everything but production and

lab work. "It is challenging, exciting, and fulfilling," he

says. "In small businesses, what you do is not filtered through

meetings and conferences. You can make decisions much more


Flexibility of mind, body, and spirit is important for everyone, but

particularly for those who are aging. Reich believes the fear of being

embarrassed reinforces the general public’s view of old age as


with senility, rigidity, and disablement. "At a certain age you

get concerned about how you appear to other people," Reich says,

"and then that’s the end of it. You don’t want to be embarrassed.

You don’t ask stupid questions, so you don’t learn anything. You don’t

try something new, so you don’t develop new skills."

Reich was so venturesome about developing new skills that he enrolled

in modern dance classes at Princeton Ballet School. He was often the

only man in classes with women of all ages and, in spite of his lack

of skill, conducted himself with aplomb. "In modern dance you

get embarrassed all the time," says Reich. "But if you allow

yourself to be embarrassed you can do different, interesting


Says Reich, "In the `psych’ jargon, it’s OK to be stupid, to `not

know.’ The important thing is to have fun."

— Barbara Fox

Tyndale Plains-Hunter, 17J Princess Road,


08648. Murray Reich, president. 609-912-1050; fax, 609-912-1055.

Kellogg Company, 206 Rockingham Row, Princeton

Forrestal Village, Princeton 08540. Jim Scott, vice president.


fax, 609-419-8777. Home page:

The world’s leading cereal manufacturer relocated its east coast sales

office from Montvale because Princeton was more convenient.

Top Of Page

Rose Pannell, 53, on December 10. She had worked at


Policy Research.

Don Young, 74, on December 12. He owned Don Young’s


and Cocktail Lounge in Ewing.

Pabitra Datta, 55, on December 13. He was a senior member

of the technical staff at the Sarnoff Center.

Gail H. Steinert, 61, on December 16. Head nurse of


Nursing Home, she retired in 1997.

R.L. "Doc" Lenhart, 87, on December 19. The owner

of an advertising agency, he founded the Princeton Chamber, and was

its seventh president.

Norma M. Greaves, 71, on December 19. She was a realtor

for Weichert Realtors and then for Coldwell Banker of Princeton.

Frank J. Miotla, 49, on December 23. A member of the


Brotherhood of Painters union, he worked at the Carnegie Center.

William Byrd, 93, on December 25. He founded Magnetic

Specialties Inc.

Fredrick Aandahl, 78, on December 25. He was associate

editor of the Papers of Woodrow Wilson. A memorial service in the

University Chapel will be January 24 at 1 p.m.

N. Gerald Sapnar, 62, on December 26. He owned the N.

Gerald Sapnar Insurance Agency and the Office Cafe in Hamilton.

Louis A. Conover, 64, on December 26. An engineer, he

was a consultant with Hopewell Valley Associates.

Malcolm L. Diamond, 73, on December 27. He was a religion

professor at Princeton University and a therapist at Corner House.

A memorial service will be on Sunday, February 8, at 3 p.m., at


McCosh 50.

Gail M. Simpson, 58, on December 27. She worked for


Martin in East Windsor.

J. Richardson Dilworth on December 29. He had been senior

financial advisor to the Rockefeller family and director at the


for Advanced Study. A memorial service will be held at noon on


January 10, at the Princeton University Chapel.

Richard A. Lester, 89, on December 30. A former Princeton

University dean, he was a nationally prominent labor economist.

Joseph Sheppard, 30, on December 30. A tennis pro at


Racquet Club in South Brunswick, he was a Comcast Cellular One


David A. Rothbloom, 36, on December 31. He was a project

manager for AT&T and at McGraw-Hill Corp. on Princeton-Hightstown


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