BRIEFCASE

Issue of June 12, 2007

PNC Bank to acquire YNB
   The PNC Financial Services Group, Inc. based in Pittsburgh, Pa. announced that it has signed a definitive agreement to acquire Hamilton-based Yardville National Bancorp for $403 million in stock and cash, or approximately $35 per share. YNB has $2 billion in deposits and 33 branches in central New Jersey and eastern Pennsylvania.
   In recent years YNB has been challenged by an outside investor, Lawrence Seidman, over its performance, management and share valuation. Mr. Seidman, who owns almost 10 percent of YNB has engaged in proxy battles with YNB seeking an overhaul in management and a possible sale of the bank. Because of questions over its business risk and capital levels, YNB has been under special oversight by the U.S. Comptroller of the Currency since 2005. Recently, YNB had to restate its annual income results for 2006, with lower net income than previously reported.
   "This acquisition is consistent with our strategy of expanding PNC’s distribution in the rapidly growing and affluent Middle Atlantic region," said PNC President Joseph C. Guyaux, in a press release. The acquisition is expected to close early in the fourth quarter of 2007, subject to regulatory approvals and approval by YNB shareholders.
Rite Aid buys local drugstores
   The Rite Aid drugstore chain has acquired 1,854 Brooks and Eckerd stores, including 138 in New Jersey. In Mercer, Middlesex and Somerset Counties 24 drugstores will be acquired by Rite Aid, including stores in Princeton, West Windsor, Hillsborough, Skillman, Pennington, and East Windsor.
   Jody Cook, a Rite Aid spokeswoman, said, in New Jersey, "We don’t have plans right now to close any stores," except for one in Penns Grove. She said customers would see little change with the turnover in ownership. Rite Aid will evaluate store locations based on whether there may be overlap with existing Rite Aid stores to see if any closings are necessary going forward, she said.
   Ms. Cook said, of the 1,854 stores acquired Rite Aid expects to close fewer than 200.
Celator announces good study results
   Celator Pharmaceuticals, based in Plainsboro, announced positive safety and efficacy results from its Phase I study of CPX-1 (Irinotecan HCI:Floxuridine), liposome injection in patients with heavily pre-treated, advanced solid tumors. Results were presented at the American Society of Clinical Oncology meeting in Chicago.
   Among a total of 33 patients with different types of cancer who were treated in the dose-escalating study, 73 percent showed clinical benefit including either partial regression or stable disease. In ten patients delay of disease progression was greater than six months. Among a subset of 15 patients with colorectal cancer, median duration of progression-free survival was 5.3 months. Of these patients, 80 percent received CPX-1 as a third, fourth or fifth line treatment, and 66 percent had prior treatment with irinotecan.
Narrowstep partners with Telefonica
   Narrowstep Inc., a company with offices in Princeton, New York City and London, which provides television programming on the Internet, announced a partnership with Telefonica, the third largest television company in the world, to provide its proprietary technology, telvOS, in order to deliver broadband TV channels.
   Telefonica has been conducting trials of two broadband TV channels, Terra TV Spain and Terra TV Peru. According to Narrowstep, the broadband TV offerings are the fastest growing features on the Telefonica portals. Terra, the internet arm of Telefonica, operates popular Web sites throughout the U.S., Spain and Latin America, targeting Spanish and Portuguese speaking customers. Terra TV delivers content across a number of content categories including entertainment, music, local and worldwide news, business, and health.
Mercer emergency facility expanded
   Mercer County Executive Brian M. Hughes and representatives of the Mercer County Department of Emergency Management announced the opening of a newly expanded emergency communications annex at the Dempster Fire Training Academy in Lawrence. Over the past year, the County has used Homeland Security grant funds to upgrade technology and expand resources at the Emergency Operations Center, purchasing new computers and improving telecommunications utilities available for widespread dissemination of emergency information. Specifically, additional personal computers were purchased for use by emergency personnel, communications officers, and department heads during emergency situations. The acquisition of laptop computers will enable County representatives to communicate information effectively in emergencies from any location.
   In addition, the Office of Emergency Management installed new telephone technology to improve service for the Reverse 911 system, which began operating in May of last year. Reverse 911 enables the County to disseminate essential information quickly and effectively in an emergency.
Trenton airport gets grant for work
   Mercer County’s Trenton-Mercer Airport has received $3.64 million in federal grant money for work at the airport. The grant money will go toward repairs of the taxiways, which are the roadways leading to the runways at Trenton-Mercer. Additionally, according to Mercer County Executive Brian M. Hughes, the County has amended a previous grant that will add another $360,000 to the approximately $6 million project, and will allocate another $1,485,000 in state-awarded grants toward the project. The total project cost is $5,863,072 of which 95 percent of the total cost will be paid for by grants. The County’s share is $275,000 out of the nearly $6 million.
Physical therapy business opens
   Jennifer Kole, a working mother of three and a resident of Cherry Valley, is opening Montgomery Physical Therapy in Skillman to provide patients with hands-on, personalized care in a private setting. A McKenzie certified physical therapist, Ms. Kole has worked in the Montgomery/Princeton area for the past eight years concentrating on orthopedic, neurologic, geriatric and balance patients. Previously, she was a clinical specialist in brain trauma. More information can be found on the MPT Web site at www.montgomerypt.net.