Gov. Easley Announces 205 Jobs in Guilford County

State Grant Helps TransTech Pharma and Pharmacore Expand in High Point

RALEIGH - Gov. Mike Easley announced today that TransTech Pharma and spinoff company PharmaCore will expand in High Point investing more than $23 million and creating 205 jobs during the next five years. The expansion was made possible in part by a state Job Development Investment Grant.

"In North Carolina we are focused on the jobs of the future like those in the biotechnology and pharmaceutical industries," Easley said. "TransTech Pharma and other 21^st century companies know North Carolina is providing the education and training for the kind of dedicated, skilled workers they need to succeed."

Formed in 1998, TransTech is a clinical-stage pharmaceutical company focused on the discovery, development and commercialization of drug products. The company currently has a pipeline of drug candidates for the treatment of a wide range of human diseases including central nervous system disorders, cardiovascular disorders, cancer, obesity and diabetes.

PharmaCore, which spun off from TransTech in 1999 and shares the same owners, provides manufacturing and other chemistry services for pharmaceutical and biotech drug discovery programs in the U.S. and Europe. As TransTech continues to move its drugs through clinical development, PharmaCore could help meet its manufacturing needs, so owners want the two companies to locate together on a corporate campus.

TransTech plans to add 155 workers over the next five years and grow from its current 85 employees to 240. PharmaCore plans to add 50 workers over the same time period to the 40 who currently work there. While wages at the facilities will vary by job function, the average annual salary for the new jobs is expected to be $96,000 a year, not including benefits. That is more than double the Guilford County average of $36,712 a year.

Currently, the companies occupy 77,000 square feet of space in a High Point corporate park. The expansion would increase the amount of immediate space available for the two companies and add adjacent land. The result would be to establish a campus containing 186,000 square feet on more than 30 acres.

"Both TransTech Pharma and PharmaCore have been successfully growing their respective businesses in North Carolina since their inception in 1998," said Dr. Adnan Mjalli, founder and chairman of both companies. "After several months of exploring different site locations and growth opportunities, we are pleased to announce that we will continue the expansion of TransTech and Pharmacore in High Point. We are very grateful for Gov. Easley's support and would like to extend our thanks for the work on our behalf of other state representatives including Commerce Secretary Jim Fain and Sen. Kay Hagan. We would also like to extend our appreciation for the support and efforts of Mayor Becky Smothers, City Manager Strib Boynton, Loren Hill and other officials from the City of High Point who were very instrumental in our decision to expand our drug discovery, development and manufacturing opportunities in the state of North Carolina."

"I am delighted and proud that state, local and education agencies, along with the private sector, have come together to help make this expansion in High Point a reality," said state Sen. Kay Hagan (D-Guilford), who is a co-chair of the Senate Appropriations Committee and serves on the Commerce Committee. "I will continue to champion policies that help keep and attract growing and innovative companies to this area and our state."

"This announcement means more quality, high-paying jobs for our area," said state Sen. Katie Dorsett (D-Guilford), who also serves on the Senate Commerce Committee.

"Our commitment to improving education is providing a workforce with the knowledge, talent and skill that companies in our area need to succeed," said state Rep. Laura Wiley (R-Guilford).

The state's Economic Investment Committee voted unanimously today to award a Job Development Investment Grant (JDIG) to TransTech Pharma to facilitate this project. This is the 70^th JDIG award announced since Easley and the General Assembly started the program in 2002, and the 15^th awarded this year. Under terms of the 12-year agreement, the N.C. Department of Commerce estimates the project will:

• Generate a cumulative gross product value of about $682 million.
• Produce a positive, cumulative net state revenue impact of $5.3 million.
• Contribute up to $2.19 million to the to the state's Industrial Development Fund for infrastructure improvements in economically distressed areas of North Carolina. This contribution is required of grant recipients that locate in the state's most prosperous counties.

For each year in which the company meets the required performance targets, the state will provide a grant equal to 75 percent of the state personal income withholding taxes derived from the creation of new jobs. Should the company create the jobs called for under the agreement and sustain them for 12 years, the agreement could yield as much as $6.57 million in maximum benefits to TransTech Pharma.

Job Development Investment Grants are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant. Since the first grant was awarded in 2003, the program has been responsible for creating more than 26,000 jobs and $3.5 billion in investment in North Carolina.

Other partners who assisted with this announcement include: N.C. Department of Commerce, N.C. Community College System, City of High Point and High Point Economic Development Corp.

For more information about TransTech Pharma including employment opportunities with the company, visit www.ttpharma.com. For information about PharmaCore, go to www.pharmacore.com

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