DEVELOPMENT FINANCING ADVISORY COUNCIL APPROVES ECONOMIC DEVELOPMENT PROJECTS TO CREATE 304 JOBS IN OHIO

FOR IMMEDIATE RELEASE
February 27, 2006

Columbus, OH -- Governor Bob Taft today announced that the Development Financing Advisory Council (DFAC) has approved loans and bonds totaling more than $11.8 million for three economic development projects. The loans, which are pending State Controlling Board approval, are expected to create 304 jobs and retain 306 positions.

Alkermes, Inc., located in Wilmington (Clinton County), will receive an $8.84 million Ohio Enterprise Fund Bond at a potential interest rate of 5.5 percent for a term of ten years and a $1.5 million Research and Development Loan Fund (R&D) at an interest rate of two percent for a term of seven years to expand manufacturing capabilities and research and development activities at their plant in Wilmington. Alkermes is a pharmaceutical company that develops drug delivery systems for the reformulation of already-marketed drugs. The proposed project includes the construction of a 44,000 square-foot addition to the company’s 100,000 square-foot facility. The company will also invest in pharmaceutical grade machinery and equipment and add manufacturing, laboratory, research and development, warehousing and administrative operating space. The more than $76 million project is expected to create 275 jobs and maintain 275 existing positions within the first three years of the project’s initial operation.

LS Strapping, Inc., located in Cleveland (Cuyahoga County), will receive an $800,000 166 Direct Loan at an interest rate of three percent for a ten-year term to purchase machinery and equipment. LS Strapping manufactures and sells steel strapping primarily to packaging distributors. The company produces strapping ranging from .50 to .75 of an inch in width and the project will allow the increased production of these strapping product lines. This $2 million project is expected to create 10 jobs retain 25 existing jobs within the first three years of the project’s initial operation.

UniControl, Inc., located in Cleveland (Cuyahoga County), will receive a $697,500 Innovation Ohio Enterprise Loan Fund loan at an interest rate of 6.5 percent and a term of eight years for the purchase of machinery, equipment and prototyping molds; consulting for machinery and equipment engineering; and the financing of intellectual property rights (design plans) pertaining to a new mechanical air switch. UniControl, Inc. specializes in the design, application and installation of products that prove, measure and control airflow. The project will allow UniControl to enter the residential HVAC market by beginning production of the air switch through a contract manufacturer while securing the equipment, tooling and space necessary for eventual internal production. The $930,000 project is expected to retain 6 positions and create 19 jobs within the first three years of the project’s initial operation.

The Ohio Enterprise Bond Fund (OEBF) provides funding for land and building acquisition, construction, expansion or renovation, and equipment purchases for commercial or industrial projects between $1.5 million and $10 million. The Research and Development Loan Fund (R&D) targets large investments from companies involved in research and development projects with significant assets and sales, and assists in financing the acquisition, construction and related costs of technology, facilities and equipment. The 166 Direct Loan program provides loans for land and building acquisition, expansion or renovation, and equipment purchase. The Innovation Ohio Fund Loan (IOF) assists existing Ohio companies develop next generation products in industry sectors that include: advanced materials; instrument, controls and electronics; power and propulsion; biosciences; and information technology.