inroads

a quarterly publication of the hampton roads economic development alliance

2009 QTR 2

CHAIR Mike Barrett Runnymede Corp.

VICE CHAIR Robert BrownRobert Brown and Associates

TREASURER Bob BoydBB&T

SECRETARY Rick Bagley Wachovia Securities

President & CEO Darryl Gosnell

Senior Vice President Amy Parkhurst

Vice President Thomas Clemens

Vice President Steve Cook

Operations Debbie Ogan& Technology Director

Investor Sarah CavanaughDevelopment Director

Research David Gray& Information Services

Business Recruitment Chris Gullickson

Marketing Lisa LitwillerCommunications

Marketing Ashleigh Stein& Special Events Coordinator

Executive Kate RodenhouseAssistant International Consultants

Germany Ingo Bentz

United Kingdom Charles Macdowell

China Catherine Magill

staff

officers

500 Main Street | Suite 1300

Norfolk, VA 23510

T +1 757 627 2315

11820 Fountain Way | Suite 301

Newport News, VA 23606

T +1 757 627 2315

4 East Bank House | Tide Mill Way

Woodbridge, Suffolk IP12 1BY UK

T +44 1394 610022

World Trade Center | Birkenstrasse 15

28195 Bremen, Germany

T +49 421 174660

Darryl Gosnell, President & CEO

FROM THE PRESIDENT’S DESK

The Alliance is halfway through 2009 and making good on both our

short- and long-term goals.

The economy may not have shown the gains we’d hoped for at this

point, but there are indications that it is stabilizing – and, in some sectors,

showing the beginnings of recovery. That being said, our business recruit-

ment team has had no reason to slow its activities; in fact, summer is gear-

ing up to be our busiest and, hopefully, most productive quarter of the year.

We were pleased to announce in April two companies chose Hampton

Roads for their locations. ipConfigure, a developer of video surveillance

software, selected Innovation Research Park in Nor-

folk for its newest location. The Art Institutes, an edu-

cational company offering degree programs in culinary

arts and design, opted to make Virginia Beach’s Town

Center its new home. Both announcements translate

into a total of 57 new jobs, and a $8.65 million invest-

ment for Hampton Roads.

The 2nd quarter of ’09 saw our project managers

hit the road for several trade shows, seminars, confer-

ences, and various marketing missions. In April we conducted an aggres-

sive mission to China that included a high profile seminar; we also attended

the CoreNet Global Annual Conference in Dallas and Hannover Messe in

Germany. May saw the Alliance travel to New England and Japan on mar-

keting missions (the latter including two state-sponsored seminars); partici-

pate in ITEC 2009 Conference & Exhibition; and attend the IAMC Profes-

sional Forum. As a result of these marketing activities, the Alliance gained

56 new business contacts and accomplished 117 corporate and consultant

appointments in the second quarter.

The Alliance is working hard to ensure that despite the recession, eco-

nomic gains can and will be a reality for Hampton Roads. Thanks to your

belief in our mission, Hampton Roads is not just surviving these tough eco-

nomic times – it’s holding its own and even making measurable progress.

We appreciate your ongoing support and offer our best wishes to you all for

continued prosperity in our region.

inroads is a quarterly publication of the Hampton Roads Economic Development Alliance. Forward comments and suggestions to llitwiller@hreda.com.

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Canada Marketing Mission (4/09)

Hannover Messe Trade Fair, Germany (4/09)

China Marketing Mission (4/09)VEDP New England

Marketing Mission (5/09)

Southern California Marketing Mission (6/09)

Japan Marketing Mission (5/09)

Seminars and Special Event, Germany (6/09)

ITEC, Belgium (5/09)

Chicago Marketing Mission (6/09)

Atlanta Consultant Mission (6/09)

Hannover Messe ranks as the leading interna-

tional showplace for industrial technologies, materi-

als and product ideas. So it is with good reason

that attendance at this fair has been on the Alliance

calendar for over 10 years. Chesapeake, Virginia

Beach and Franklin Southampton joined HREDA for

this year’s five day show where alternative energy

seemed to be on everyone’s mind.

“Many European businesses are paying close

attention to the Obama administration’s investment

in alternative energy. Consequently many conversa-

tions centered around that particular topic,” noted

HREDA VP, Thomas Clemens.

“For exhibitors and visitors alike, the five days

of the show provided ample evidence that leverag-

ing one’s strengths is the only way to move forward.

Everyone headed off with a shot of confidence,

GERMANY - Hannover Messe

We’ve crossed miles, oceans and time zones, shaken countless hands, and eaten things we can’t even pronounce - nor would eat again - yet we are more energized than ever! Interest in our region continues to be steady and our project activity is up; some projects are new while others have been revived from previous years.

ready to surmount the problems they face and seize

the opportunities available,” commented Deutsche

Messe Managing Board Chairman Wolfram von

Fritsch at the end-of-show press conference. “Our

exhibitors gave proof positive that the drive to in-

novate is as powerful as ever. Rather than dwelling

on the crisis and agonizing over its causes, this

show was about finding the most promising ways

forward.”1

HREDA’s appointment schedule included visits

with companies who already have a location in

Hampton Roads and were present at the show.

1 Courtesy of www.hannovermesse.com

ITEC, the renowned European defence, train-

ing, education and simulation conference, pro-

vided this year’s 2400 attendees and 120 global

suppliers with the opportunity to learn insights

from industry experts as well as see many new

and emerging tools and technologies. The 12-14

May show highlighted a wide range of exhibits

including advanced synthetic technology, physi-

cal simulation of coping with IEDs, a variety of

Serious Games, modeling and simulation COTS

tools, simulation display systems, and virtual inte-

grated procedural trainers.

“This year’s ITEC was a great success with both the conference and exhibition being very well received.

Conference attendance was strong with 462 delegates - slightly higher than at ITEC 2008,” noted ITEC Show

Director, Nina Bushell of Clarion Defence & Security.

Whilst in country, HREDA’s Steve Cook (VP), Charles Macdowell (Senior Consultant UK ) and Scott Hall

(Virginia Beach) promoted the defense and technological assets of our region via appointments with 18 com-

panies representing a range of M&S technologies.

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BELGIUM - ITEC 2009

Firmly believing that we cannot dismiss the

continued growth of outward investment in the

China market, HREDA coordinated an April semi-

nar/marketing mission

to Qingdao, China.

Seminar presenters in-

cluded Darryl Gosnell,

Steve Cook, Catherine

Magill (Senior Consul-

tant China) and David

Cohn, a partner at the

Troutman Sanders law

firm currently residing

in Shanghai. Topics

covered issues from

starting a business in

the U.S. to immigration

law. Annie Kang, Chief Representative, Main-

land China for Virginia International Terminals,

highlighted the strength and growth of the Port

of Virginia. Of particular interest to the attendees

CHINA

was the personal account from Mr. Gao, General

Manager of Shangdong Zhangqiu Blower Co., Ltd. of

his company’s office/warehouse expansion to Suffolk

last December.

“It was a quick

trip, but with over

60 participants

at the seminar

representing more

than 25 compa-

nies, and a solid

meeting schedule

with manufactur-

ing and govern-

ment officials,

it was worth it,”

commented Mr.

Gosnell. “Of course we expect to see a few of these

companies visit Hampton Roads in the near future.”

Scott Hall (Virginia Beach ED), Charles Macdowell and Steve Cook (HREDA) on exhibit floor

Pictured above left to right: Catherine Magill, Darryl Gosnell, Rena Ren (Foreign-oriented secretary to the President), Steve Cook, Victor Qian (Key Account Manager to the U.S.), and Karen Chi (Qingdao liaison for HREDA).

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“Investment Opportunities for Japanese Companies in the Alternative Energy Sector”

Sharing a common

purpose in a far away land,

HREDA, the Greater Rich-

mond Partnership (GRP),

and Virginia Economic

Development Partnership

(VEDP) hosted two sold-out

business investment seminars

in Japan the third week of May.

Combined attendance totalled

120 business executives - 80

attending in Tokyo and 40 in

Osaka.

Highlighting the strength of

our region’s international profile,

research/development facili-

ties, and our logistical, production and service advantages, the delegation’s message provided resources for

attendees considering a U.S. presence in Hampton Roads. ‘Alternative Energy’ was the key component of

both seminar presentations which later segued into discussions on new U.S. federal programs as part of the

stimulus bill passed by Congress earlier in the year.

As a special honor, the HREDA team was pleased to provide their business guests with the first hand tes-

timonies of Mr. Takanobu Ihara and Mr. Ai Sawasa, two former Usui International Corporation executives. Their

messages were simple and straight forward; Hampton Roads is a great place for international business.

SOUTHERN CALIFORNIA and CHICAGO MARKETING MISSIONS

Marketing venues successful in all aspects but the games!

Los Angeles -While our 20 plus Dodger fan guests

suffered a disappointing team loss to the Padres

at Dodger Stadium the evening of June 11, they

unanimously agreed the company, conversation

and food more than compensated for the outcome.

The 8-11 June marketing mission hit all targets with

a total of nine appointments involving companies

within the warehouse, distribution, maritime, logis-

tics, defense and modeling and simulation indus-

tries. In contrast to current economic trends, each

appointment classified their company’s status as in

a ‘growth mode.’

Chicago - Perhaps worse than losing a game is not

playing the game at all! Such was the outcome

of the scheduled June 16th Cubs vs. White Sox

rivalry. Unfortunately, the much anticipated city se-

ries game was rained out. But, thanks to a variety

of well appointed meetings with industry execu-

tives and consultants, including travel to locations

in Wisconsin and Indiana, Steve Cook, Ben White

(Chesapeake) and Scott Hall (Virginia Beach) made

this mission a success!

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announcements

The Alliance is pleased to have participated in locating five new businesses in the region during the first half of 2009. The business of recruitment is a team effort, regionally speaking, and one in which we are proud to facilitate and partner. The five new companies found their ideal locations in Chesapeake, Suffolk, Norfolk and Virginia Beach. Four of those five are highlighted here.

Who and Why – In Their Own Words

becker solutions Corp., a German based hydraulic hose assembler and hydraulic parts manufacturer chose Chesapeake’s Riverwalk Commerce Center as the location for its first U.S. sales and distribution office.

SPARTA Composite Products, an industry leader in high tech military and civil aerospace composite products, chose Suffolk’s Northgate Commerce Park for its first East Coast plant. Operations are scheduled to begin early 2010.

GERMANY - Hamburg Mission and Reception

The dedicated efforts of VP Thomas Clemens and our senior consultant in Germany, Ingo Bentz, has

made connecting with prospects in Germany as seamless as a well-tailored suit. Interest in this year’s busi-

ness seminars in Halle and Rostock resulted in 47 “Making the Connection” registrants. Participants were

very engaged in the team’s presentations and open forum discussions, and keen on gaining insights into

establishing a business presence in the U.S. Alliance staff members Darryl Gosnell and Thomas Clemens

partnered with Tom Elder (Chesapeake) and Chuck Rigney (Norfolk) to bring their knowledge and experience

to panel discussions regarding the benefits of operating a business in Hampton Roads. The successful in-

ternational mission concluded with a VIP cocktail reception and dinner jointly hosted by Virginia International

Terminals and HREDA for key Hamburg steam ship line representatives and maritime prospects.

“Making the Connection”

Why Hampton Roads? “With a growing number of U.S. clients, I needed a location that could

readily support not only our domestic distribution, but international as well. The region’s thriving inter-

national community, cost of living, infrastructure and ideal East Coast location provided the solution and

ultimately led us to Chesapeake.”

Fabian Becker, President

Why Hampton Roads? “Our reasons for selecting Hampton Roads and Suffolk over all of the

competing cities were based on the abundance of a high quality workforce, the great quality of living

as well as clearly identified statistics and details of the incentive packages from the city of Suffolk and

the commonwealth of Virginia. Since we made the decision, we continue to be pleasantly surprised by

more and more reasons why this was not only the right decision, it was the BEST decision we could

ever have made… we could not be more proud to be a member of such a high class, thriv ing and

friendly community.”

Paul Oppenheim, Vice President and General Manager

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1st Quarter 2nd Quarter YTD TOTAL 2008

PROJECTS Total Active 109 112 N/A 129

New 5 14 19 38

PROSPECT VISITS

Total 7 12 19 39

New 6 8 14 27

Repeat 1 4 5 12

RECRUITMENTACTIVITIES

Trips 12 14 26 48

Appointments 40 117 157 269

Contacts 121 56 177 n/a

ANNOUNCEMENTS Total 2 3 5 4

Capital Investment $13,450,000 $9,400,000 $22,850,000 17,820,000

Jobs Created 201 85 286 63

Square Footage 70,000 39,200 109,200 326,300

ipConfigure, a surveillance software development company, headquartered in Houston, TX, located its global sales office at Innovation Research Park (IRP) @ ODU in Norfolk earlier this year. A self-described bootstrap company, ipConfigure is poised to become a leader in electronic surveillance.

MASA Group Inc., a high technology company specializing in cognitive artificial intelligence and optimization for logistics. Home based in Paris, France, MASA adds to the region’s growing international profile. MASA’s office in ODU’s Innovation Research Park (IRP) employs three software developers and modelers. With sights for the Norfolk team to become the core U.S. technical team, MASA maintains an aggressive growth plan.

Why Hampton Roads? “Locating at IRP allowed us to take advantage of proximity to ODU’s

Vision Lab and a ready pool of well-trained, enthusiastic workers. We have space, expertise and it’s

near our workforce. We’d love to make Hampton Roads the center of video surveillance technology.”

Chris Uiterwyk, CEO and ODU alum

Why Hampton Roads? “We chose to operate in Norfolk due to the development of the new

technology park, the proximity to ODU and the regional commitment to modeling and simulation. We

moved to the park to benefit from the university environment and to tap into the student population as

we proceed to hire. The location is close enough to our customers and the facilities are new and well

appointed.”

Mark Phillips, Vice President for Business Development

second quarter report

?Do you know someone who could benefit from being an Alliance investor?

contact

Sarah Cavanaugh

Investor Development Director

T: 757-664-2624

500 Main Street, Suite 1300Norfolk, VA 23510

inroads

Investor Calendar Notes All meetings scheduled for 8:30 AM unless indicated August 20 Executive Committee MeetingSeptember 24 Board Meeting, TNCC Workforce Dev. CenterOctober 22 Executive Committee MeetingDecember 10 Board Meeting, VMASC

Congratulations to Dollar Tree on being named to Fortune’s List

of Top 500 Companies for 2009. The Chesapeake-based retailer

joins regionally headquartered Norfolk Southern and Smithfield

Foods in earning the coveted Fortune 500 status.

FYI – The Commonwealth of Virginia boasts 33 Fortune 500

companies; Richmond has 5 and Hampton Roads, 3.