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UTECH PRODUCTS SELECTS DOWNTOWN SCHENECTADY FOR NEW HQ

FAST GROWING MEDICAL SOFTWARE/SUPPLY COMPANY MOVING TO SCHENECTADY

April 20, 2004

SCHENECTADY, N.Y.  – Schenectady County Legislative Chair Susan E. Savage today joined with Senator Hugh T. Farley, Mayor Brian U. Stratton, County Legislative Minority Leader Robert T.  Farley, City Council President Frank Maurizio and Metroplex to announce that UTECH Products, Inc. will invest $2 million, create 50 new jobs and move its corporate headquarters to downtown Schenectady.   UTECH is a fast growing medical technology and software company.

“We promised Schenectady County residents an aggressive, smart growth, results driven economic development effort.  Today’s announcement that UTECH Products has selected Schenectady over competing locations proves that we are delivering on this important promise.  Schenectady is winning again because we have everyone in our community pulling in the same direction when it comes to competing for new jobs and investment.”

Chair Savage added “Once again, we thank Senator Farley for his outstanding support on this project.”  Senator Farley is providing a $350,000 grant to the Schenectady County IDA to be used toward renovations of the Cramer Building to prepare the building for use as UTECH’s new corporate headquarters.

State Senator Hugh T. Farley said “Schenectady keeps getting better every day!  These high technology, private sector jobs add a new dimension to downtown Schenectady’s rebirth.  Schenectady’s growing strength is in its increasingly diversified economy.  Today we add the corporate headquarters of a global player in the fast growing field of medical technology to Schenectady’s base of manufacturing, State government,  insurance, arts and entertainment, hospitality, agricultural processing and retail jobs.  I’m thrilled to continue working to improve downtown Schenectady.”

Mayor Brian U. Stratton said “This announcement is yet another sign that real change is happening in Schenectady.  Instead of building a new building in a suburban office park, UTECH has selected downtown Schenectady for its corporate headquarters.  This project will result in the renovation of one of the most important buildings in Schenectady, it will bring young professionals downtown and it sends the message that Schenectady now has a pro-active economic development effort.”

UTECH President Rakesh Madan said “we considered numerous sites in the Capital Region including the RPI Tech Park, Saratoga County and many other locations.  To attract and retain the best technical talent, we need to offer our workforce a vibrant workplace.  We found that and more in Schenectady.  We appreciate the tremendous support that we have received from Senator Farley, Mayor Stratton, the County Legislature, the City Council and Metroplex.”

UTECH Products, Inc. is a fast growing software and medical technology company.  The company’s medical software division, Endosoft, has operations in the United States, Netherlands, England and India.   Endosoft is a leading data and image management software for doctors and nurses.  It provides software solutions to make entire hospitals paperless and wireless and it provides instant access to patient clinical information.  Endosoft is used by over 10,000 physicians and nurses at leading health care institutions including:  the Mayo Clinic; University of California at San Diego; Basset Healthcare; numerous VA Hospitals; Wake Forest University Medical Center and Henry Ford Medical Center.  It is also used at leading hospitals and health care facilities in Netherlands, Russia, France, Germany, Singapore, England, Portugal and the Middle East.

Robert T. Farley, Minority Leader of the County Legislature said “this is an exciting 21st Century company that will hopefully grow and prosper with Schenectady.  The technological nature of its operation is a perfect fit with our community and our experienced workforce which has long been known for its science and technology talent.  This is another huge win for our community.”

UTECH is currently located in Colonie.  To handle rapid expansion, the company needed to relocate and considered numerous sites in the Capital Region before selecting Schenectady.  Following an investment of $2 million in building renovations and equipment, the company plans to relocate to the Cramer Building located directly across from the Broadway Parking Garage.

City Council President Frank J. Maurizio said “this exciting project addresses many of the issues important to our community: restoration and reuse of a building key to our redevelopment efforts; an influx of good, technology-based jobs so important to the modern economy; and the addition of a cutting-edge, tax-paying business to downtown Schenectady’s revitalization efforts.  This is another example of how cooperation and a can-do attitude pays off.”

The Cramer Building is 24,000 square feet structure that is one of the most important buildings in the downtown core.  The building needs extensive interior and exterior renovations.   Senator Farley is providing a $350,000 grant to the Schenectady County IDA, which is administered by Metroplex, to be used toward the cost of building upgrades.  The balance of renovation costs will be paid by UTECH using bank financing and a $650,000 loan to the company from Metroplex.  Metroplex will also provide a $60,000 grant to help offset the cost of moving expenses.  UTECH will pay Metroplex $160,000 for the Cramer Building.

UTECH expects to start work on the Cramer Building in June with work completed by late fall.  The company will relocate 20 existing Capital Region staff later this year growing to 50 jobs within three years with the potential for further job growth as the company continues to develop new medical software products.   The company will lease up to 50 spaces in the Broadway Parking Garage and make an annual payment to the City under a standard PILOT agreement with the City IDA, administered by Metroplex.  The Cramer Building is currently tax exempt because it is owned by Metroplex.  UTECH’s purchase of the building places the property back on the tax rolls.

Metroplex Chairman Ray Gillen said “UTECH evaluated many other locations.  Schenectady’s team effort won the day and the deal.  The message we are sending to companies looking for space and opportunity is that Schenectady is ready, willing and able to compete.”

UTECH plans to occupy the entire second floor of the Cramer Building and portions of the first floor once renovations are complete setting the stage for further development of loft or second floor space in downtown.  UTECH and Metroplex will work with existing retail tenants on the first floor of the building to retain operations in the Cramer Building or other parts of downtown.

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