ITXC’s New Offering

JustBalls to EarthLink

Contracts Awarded

Expansions

Praelux Sold

New in Town

Name Changes

Downsizing

Law Moves

Correction

Deaths

Corrections or additions?

Paytrust Goes Public

A winner of the "Most Likely to Go Public"

award at the 1999 New Jersey Venture Fair (see story, page 14) Paytrust.com,

has just announced its initial public offering, and a winner from

two years ago, ITXC, has offered its founders an opportunity to cash

out and other investors to buy in.

Paytrust is an Internet-based service enabling consumers to receive,

review, approve, and pay all bills electronically. Its parent company,

Secure Commerce Services, on Emmons Drive, had already raised $50

million from some prestigious investors, most recently Citigroup’s

e-City unit. It has an agreement with American Express to market the

Paytrust service to its 29 million members.

"Tell us who your billers are, and what the account is, and whether

it’s AT&T or your lawn service, we will do almost everything else

for you," said McLaughlin in an earlier interview (U.S. 1, August

25, 1999). "On the payment side it is like electronic banking.

On the presentation side — that is where we are completely different."

McLaughlin majored in finance and decision science at Wharton, Class

of 1987, and designed large-scale document transmission for such clients

as Motorola, Florsheim Shoes, IBM, and Martin Marietta. Paytrust is

his third start-up. His co-founder, Flint Lane, majored in computer

science at Rensselaer (Class of 1988) and worked at Andersen Consulting

and BrownStone Solutions. He met McLaughlin at the relational database

company, LogicWorks, when it was on Campus Drive (that firm is now

part of Computer Associates).

Other Logic Works alumni also work at Paytrust. John A. Yapaola, executive

vice president of business development, went to St. Peter’s College

and worked for a developer of broadband technology. Kenneth W. Zeng,

chief financial officer, former Logic Works controller and St. Bonaventure

graduate, has also been vice president of finance at Nettech Systems

on Alexander Road and an audit manager at Ernst & Young.

Additional officers: Lawrence R. Greenberg, chief technology officer,

was formerly chief information officer at Princeton eCom Corporation,

Don Licciardello’s electronic payment processing company that moved

from Research Park to College Road. A Rutgers graduate, Greenberg

came to Paytrust last October.

David S. Fortney, who joined the firm as chief development officer

last month, went to University of North Carolina and Stanford and

had been senior vice president at Nations Bank. Edward J. Youcum Jr.,

the general counsel as of last month, went to Temple and Villanova

and had been with Morgan Lewis & Bockius in New York.

The directors include Brian B. Applegate of Spectrum Equity Investors,

Pierric D. Beckert of American Express, R. Bradford Burnham representing

AT&T Venture Fund, John L. Connolly of Aralia Technology Partners,

and Gary E. Rieschel of Softbank Venture Capital.

In the first round of financing, the "friends and family"

round, the mother-in-laws of both Lane and McLaughlin chipped in up

to $35,000 and their siblings and parents also anteed up $10,000 apiece.

As of the date of one month ago the company had 88 employees: 25 in

operations, 19 in R&D, 14 in customer service, 16 in sales and marketing

and 14 in administration, human resources, and legal affairs —

plus 78 temporary personnel in operations at a site in Lawrenceville.

Lane has developed and tested his own method for scanning bills —

automated ways of identifying forms and of lifting information off

of the "scan line," the string of numbers along the bottom

of each bill. Thanks to this, Paytrust can include an image of the

original bill with the paper check. This cuts down on errors, because

a bill-payer might have more than one account. Patents are pending.

"Our technology reads and converts both the scanline and consumer

information," says McLaughlin. Neither Paytrust employees nor

consumers need to do any keystroking, and, he says, this cuts down

on errors.

Nevertheless, the firm must contend with a patent challenge from Midwest

Payment, a bank in the midwest claiming rights to electronic bill

receipt and payment services. Paytrust’s patent is broader in scope

but just in case the Midwest patent holds, Paytrust would hope to

license it. Competition also comes from two lookalike sites: (http://www.statusfactory.com

(known as Cyberbills) and http://www.paymybills.com).

The prospectus cites additional competition, including alternative

payment methods and other kinds of businesses — banks, stockbrokers,

and web portals.

For instance, CheckFree, the electronic bill processor, is buying

out its competition, TransPoint to the tune of $1 billion. And First

Union — which tried to sue Paytrust for offering to access First

Union’s customers’ accounts — has formed a consortium with Chase

and Wells Fargo to provide similar services to Paytrust. Even Intuit

announced it would start a competitive service.

Secure Commerce Services, 29 Emmons Drive, Suite

B-30, Princeton 08540. Ed McLaughlin, president and CEO. 609-720-1818;

fax, 609-720-1819. Home page: http://www.paytrust.com.

Top Of Page
ITXC’s New Offering

Last week ITXC did a secondary offering of 4 million

shares of common stock at $85 per share. The stock jumped to $100

but is back to the mid 80s now.

Half of the shares are being sold by the company and half by stockholders,

including founder and CEO Tom Evslin. To provide Internet-based voice

and fax services ITXC deploys an actively managed network overlaid

on the Internet (ITXC.neta) plus an internet call completion service

over the Internet (WWeXchange Service). Its webtalkNOW! Service makes

ITXC.net available to portals offering web-based PC to phone calling.

Its carrier affiliates include China Telecom, Ameritech, Bell Atlantic,

Korea Telecom, and Pacific Gateway Exchange.

The offering is being managed by Lehman Brothers, CIBC World Markets,

PaineWebber, First Analysis Securities, and Kaufman Brothers. To get

a prospectus fax 516-254-7268.

ITXC started as a home office on Library Place, the home of Tom and

Mary Evslin (U.S. 1, September 17, 1997). Last November 7 it celebrated

its first "million minute day," carrying a million minutes

of wholesale Internet telephony traffic on just one day. In just four

months it had doubled its service and celebrated a "2 million

minute" day on Sunday, March 5. Also early in March it opened

its third Super PoP (point of presence), this one in Jersey City.

ITXC Corp. (Internet Telephony Exchange Carrier) (ITXC),

600 College Road East, Princeton 08540. Tom Evslin, CEO. 609-419-1500;

fax, 609-419-1511. Home page: http://www.itxc.com.

Top Of Page
JustBalls to EarthLink

With its bouncing ball giveaways, JustBalls.com had

one of the most popular exhibits at last year’s New Jersey Venture

Fair, and it won the "People’s Choice" award. Founded two

years ago (U.S. 1, August 12, 1998) the Route 27-based firm has teamed

with EarthLink, an Internet service provider, to open a storefront

in Earthlink’s online shopping mall (http://themall.earthlink.net).

"The deal gives JustBalls.com a persistent presence at the on-ramp

of one of the Net’s most active user groups, says John Worby, vice

president of marketing for JustBalls.com.

Still privately held, JustBalls.com is the first and only retailer

to specialize in the sale of balls of every type. Its investors include

David Wetherell, CEO of CMGI and now board chairman; Bob Davis, CEO

of Lycos, Blue Rock Capital, Jafco America, and Bantry Bay Ventures.

Justballs!, 4478 Route 27, Suite 102, Kingston

08528. Jim Medalia, president and founder. 609-497-2400; fax, 609-497-0113.

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

Top Of Page
Contracts Awarded

Edison Venture Fund, 1009 Lenox Drive, Lawrenceville

08648. John H. Martinson, managing partner. 609-896-1900; fax, 609-896-0066.

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

Ross Martinson, general partner and CFO of the fund, has received

a license to operate the fund as a Small Business Administration Small

Business Investment Company (SBIC) program. The SBIC license offers

venture capital funding through privately owned and managed investment

firms. Edison prefers to invest in businesses doing software development,

communications, and electronics technology. Under this program the

fund can offer from $1 million to $6 million in venture capital.

"Venture capitalists like Edison Venture Fund can supplement their

own private investment capital with funds borrowed at favorable rates

through the federal government," says Thomas M. Bettridge, of

the SBA. "The important part of this program is that it puts capital

in the hands of emerging companies. The tax revenues generated from

successful SBIC investments more than cover the cost of the program."

For the fund’s portfolio of companies Martinson cites growth rates

that average more than 30 percent per year and says the fund has invested

in more private companies in the five state area than any other venture

capital firm.

Top Of Page
Expansions

Cornerstone, 29 Emmons Drive, Suite A-5, Princeton

08540. Peter Kiesewetter, owner. 609-520-8877; fax, 609-520-9633.

The three-person appraisal firm expanded from Suite F-40 to a different

suite in the same park. Cornerstone appraises damage for insurance

companies and can also contract to get the repairs done. Peter Kiesewetter,

who graduated from Susquehanna University in 1983, worked as a project

manager for builders, and then did insurance appraising and restoration

for another company in North Jersey before opening this firm.

Top Of Page
Praelux Sold

Praelux Incorporated, 17 Princess Road, Suite A,

Lawrenceville 08648. Jay Trautman. 609-620-0220; fax, 609-620-0222.

Praelux was bought by Amersham Pharmacia Biotech on February 11 and

is now a wholly owned subsidiary. The buying organization is 65 percent

owned by Nycomed Amersham and 45 percent by Pharmacia Upjohn. Praelux

was incubated first in the offices of venture capitalist Robert Johnston

and then in leased space at the Sarnoff Center, and was formerly known

as SEQ Ltd. (U.S. 1, May 14, 1997).

The former president and CEO, David Livingston, has left, but Praelux

will keep its name and laboratories on Princess Road, says Jay Trautman,

one of the founders. Praelux has built what Trautman says is the "world’s

first fluorescence confocal microscope that can be applied to high

throughput secondary screening." It will support the parent company’s

primary drug screening system, Leadseeker Homogeneous Imaging (http://www.apbiotech.com).

Top Of Page
New in Town

Internet Soft Corporation, 212 Carnegie Center,

Suite 206, Princeton 08540. Henry D. Moore, CEO. 609-921-3904; fax,

609-921-7510. Home page: http://www.internetsoftcorp.com.

Henry D. Moore majored in business at Georgia Southern, Class of 1984,

and has worked at McGraw Hill, AT&T and did consulting at Lucent Technologies.

He is network certified in such applications as NT and has training

in Cisco and Bay routers. "We look at what the company sells and

devise a strategy to promote that in the cyber world," says Moore.

"We are business consultants first. We also can market the site."

Top Of Page
Name Changes

Busy Bee Travel, 64 Princeton Hightstown Road,

Princeton Junction 08550. Jean Golden, president. 609-890-2277; fax,

609-890-7111.

This travel agency has merged with Premier Travel, and moved from

2273 Route 33 to 64 Princeton-Hightstown Road. The company will eventually

assume the name of Premier Travel.

Vector Pharmaceutical Services, 4 Cedar Brook Drive

North, Cranbury 08512. Mark E. Wojcik, general manager. 609-395-9700;

fax, 609-395-8824. Home page: http://www.vectorcorporation.com.

Vector East Coast Laboratory has changed its name, according to a

spokesperson, to better reflect what the company does — test pharmaceutical,

chemical and industrial products for an Iowa-based company. It does

process technology and development of clinical and commercial manufacturing

of tablets, pellets, and capsules.

Top Of Page
Downsizing

O’Brien-Kreitzberg (DM), 340 Scotch Road, Second

Floor, Ewing. James O’Donnell, vice president. 609-406-1300; fax,

609-406-9711. Home page: http://www.okpcm.com.

From Crossroads Corporate Center this construction management and

engineering company has moved to a smaller space on Scotch Road. A

Dames & Moore Group company, it does program management, construction

management and engineering, and site inspection.

Top Of Page
Law Moves

Hill Wallack, 202 Carnegie Center, CN 5226, Princeton

08543-5226. Robert W. Bacso, managing partner. 609-924-0808; fax,

609-452-1888. Home page: http://www.hillwallack.com.

Senior associate Mark M. Roselli has been named a partner. A former

campaign manager for Congressman Chris Smith (R-NJ), Roselli has been

a member of the firm’s litigation and trial and insurance divisions.

Stephen N. Allen, 115 Harris Road, Princeton 08540.

609-924-7500; fax, 609-924-7588.

After a stint at a temporary office in Lambertville, the entertainment

lawyer has moved from Main Street in Kingston to a larger space at

115 Harris Road, near the Medical Center. The phone and fax are the

same.

Robert A. Felmeister, 1006 Eastpark Boulevard,

Cranbury 08512. 609-860-2800; fax, 609-860-9555. Home page: http://www.thecore.com/felmeister.

Attorney Robert A. Felmeister moved from 601 Ewing Street, Princeton

Professional Park, to Eastpark Boulevard and has a new phone and fax.

He has a general practice with an emphasis on real estate.

Princeton Mediation Inc. , 86 East Broad Street,

Amboy Bank Building, Hopewell 08525. Carol L. O’Connell, mediator.

609-466-2540; fax, 215-862-5942.

The mediation and co-mediation service moved from Princeton Avenue

to the Amboy Bank building on East Broad Street.

Rosen & Mitchell LLC, 3490 Route 1, Princeton Service

Center, Building 11, Princeton 08543. Joel D. Rosen. 609-514-1020;

fax, 609-514-1520.

The attorney, whose practice includes corporate and construction litigation,

has moved to 3490 Route 1 from 14 Washington Road. The phone and fax

are new.

Markowitz, Gravelle, Schwimmer, 3131 Princeton

Pike, Building 3D, Suite 200, Lawrenceville 08648. Joseph Markowitz,

managing partner. 609-896-2660; fax, 609-896-3184.

After 23 years as Markowitz & Zindler this firm has changed its name.

Michael Zindler is now with Teich, Groh & Frost, and the lawyers here

are Joseph and Joshua Markowitz (father-son), Christine Gravelle,

Linda Schwimmer, and Howard Teichman.

Teich, Groh, Frost, and Zindler, 691 Route 33,

Mercerville 08619-4492. Barry W. Frost, partner. 609-890-1500; fax,

609-890-6961.

Michael Zindler has added his name to Teich, Groh & Frost.

Lieberman & Blecher PC, 31 Jefferson Plaza, Princeton

08540. Stuart J. Lieberman, partner. 609-497-3930; fax, 732-355-1310.

Stuart J. Lieberman and Shari Blecher opened a firm to focus on personal

injury and environmental law. Lieberman is a 1979 graduate of Rutgers

who went to Capital University Law School in Columbus, Ohio. He had

been a shareholder at Goldshore and Wolf and Blecher had been associated

with that firm as well.

Lieberman was a deputy attorney general in the department of environmental

protection and co-author of New Jersey Brownfields Practice. He has

a syndicated column at http://www.realtytimes.com. Blecher went

to SUNY Binghamton, Class of 1995, and the Cardozo School of Law.

Rajat K. Gupta, 5 Elm Row, Suite 205, New Brunswick

08901. 732-846-8909; fax, 732-636-3358.

Rajat Gupta has joined Spevack & Cannan at 525 Green Street in Iselin

and has a new phone 732-636-3030. He focuses on personal injury and

worker’s compensation.

Top Of Page
Correction

Epark Ventures, 17 Hulfish Street, Box 123, Princeton

08542. Peter W. Hegener, chairman. 609-252-9040; fax, 609-252-9042.

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

On March 8 this company’s E-mail address was incorrectly printed as

www.epark.com. In fact, it is www.eparkprinceton.com. Hallbridge Real

Estate Group will be leasing the building.

Top Of Page
Deaths

Eugene L. Petrillo, 59, on March 10. He was an electrician

at the Sarnoff Corporation.

Steven Barnes, 47, on March 9. A graphic designer and

actor, Barnes owned Refine Design, a graphic arts studio in Pennington,

and performed with several theater companies, including Off-Broadstreet

Theater in Hopewell and the Langhorne players. He was also a volunteer

for Eden Family Services, the social service agency for people with

autism, and was a member of the committee that created the elaborate

motifs for the annual Eden Dreams gala.

Corrections or additions?


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