May 13, 2008

Osiris, NuVasive Enter Into Definitive Agreement for $85M-Plus
Osiris Therapeutics, of Columbia, has entered into a definitive agreement with NuVasive to sell Osiris’s Osteocel business for up to $85 million in upfront and milestone payments. In a separate agreement worth up to an additional $52 million in revenue to Osiris, the company will process and supply NuVasive with Osteocel for up to 18 months.

Osteocel is a viable bone matrix product that preserves the native stem cell population that resides in marrow-rich bone and is intended for use in orthopedic indications for bone regeneration.

“The time for commercial scale cell therapies has arrived,” said Randal Mills, president and CEO of Osiris. “We are very excited about this landmark transaction and believe it underscores the ability of Osiris to generate substantial value through our proprietary technology platform. Given NuVasive’s impressive growth in the spine market, we expect them to be very successful with Osteocel and look forward to working with their team.”

Alex Lukianov, chairman and CEO of NuVasive, said, “This acquisition is synergistic for both of our companies. This proven stem cell technology directly supports our strategy of expanding our offering of innovative and proprietary products. Osteocel provides our exclusive sales force with a unique stem cell-based bone graft that is complementary to our Formagraft product and will add meaningful revenue in the short term.”

As part of the transaction, Osiris retains the rights to culture expanded versions of the product, previously referred to as Osteocel-XC. However, included in the agreement is an option for NuVasive to acquire the rights to the expanded version of the product at predefined terms as well as a right of first negotiation if Osiris elects to partner the product with a third party.

Magna Losses Continue in First Quarter of 2008
Magna Entertainment Corp. (MEC), which owns Laurel Park and Pimlico Race Course, posted a $46.5 million loss for the first quarter of 2008 ending March 31. Frank Stronach, MEC’s chairman and interim CEO, attributed some of the loss to weather and track drainage issues at two premier tracks in California and Florida and reiterated his commitment to implementing the company’s previously announced debt elimination plan. “I remain optimistic about MEC’s medium-term prospects,” he said.

According to MEC Executive Vice President and CFO Blake Tohana, the weak United States real estate and credit markets have slowed progress on Magna’s asset sales which constitute part of the company’s strategy to break even by year end. Real estate property adjacent to Laurel Park is included in assets held for sale, but as of March 31 the company had not established a selling price and was not actively marketing the property.

Given the potential for legislation to permit expanded gaming at Laurel Park, officials said the company does not expect to complete the sale of this asset within one year.

Magna reported decreased Maryland revenues below the prior year period by $1.5 million due to 12 fewer live race days and decreased average daily attendance and handle at Laurel Park. Additionally, Maryland Jockey Club (MJC) agreements with the Maryland Thoroughbred Horsemen’s Association and the Maryland Breeders’ Association expired on Dec. 31, 2007, under which horsemen and breeders each contributed 4.75% of the costs of simulcasting to MJC.

As a result, operating costs are expected to increase by approximately $2.0 million for the year ending Dec. 31, 2008. At this time, officials said they are uncertain as to the renewal of these agreements on comparable terms.

Sensics Releases Ultra-Light, Hi-Def, Turnkey Display Module
Glen Burnie-based Sensics, maker of the piSight panoramic, high-definition (HD) head-mounted display (HMD), has announced a new line of ultra-light, HD display modules designed for original equipment manufacturer/original design manufacturer (OEM/ODM) applications.

Weighing approximately 85 grams (3 ounces) and offering HD-quality resolution, the small, self-contained HDSight display module is ready for turnkey integration within new or exiting products. Using energy-efficient organic light emitting diode technology, the HDSight was designed to offer exceptional field of view, brightness, contrast and color gamut.

It is targeted toward defense, academic, medical and other commercial applications. Two HDSight modules can be combined to display three-dimensional images with a binocular field of view of 120 degrees, whereas a single HDSight module offers ultra-portable monocular cathode ray tube replacement with HD quality resolution and up to 85 degrees field of view.

“Our piSight head-mounted display is used in many defense, commercial and academic applications worldwide, but some organizations prefer to incorporate our high performance display modules as part of their own design,” said Yuval Boger, CEO of Sensics. “For these organizations, we now offer the patented Sensics technology in an ultra-light, high-performance OEM package.”

COPT Closes $225M Revolving Construction Facility
Columbia-based Corporate Office Properties Trust (COPT) has closed on a $225 million construction loan facility that will be utilized to fund most of the company’s construction costs during the next several years. The facility has a three-year term with a one-year extension option, and requires interest-only payments throughout the term.

The interest rate is based on a pricing grid that is dependent on the company’s leverage, with the initial interest rate on the facility of Libor plus 160 basis points. The $225 million facility has an accordion feature that allows for a potential increase up to $325 million at a future date. The three lead banks on the transaction were KeyBank National Association, Bank of America and Manufacturers & Traders Trust Co.

Ulman to Dedicate New, Expanded Grassroots Crisis Intervention Center
Howard County Executive Ken Ulman will join members of the Grassroots Board of Directors to dedicate and cut the ribbon on the new and expanded Grassroots Crisis Intervention Center at 6700 Freetown Road in Columbia on Friday, May 16, at 10 a.m.

The Center was founded in 1969 and today provides 24-hour telephone and walk-in crisis counseling, a mobile crisis team, emergency shelter and transitional housing to those in need. Also on hand with Ulman will be Robert Fleishman and Andrea Ingram of Grassroots Board of Directors, Richard Krieg of the The Horizon Foundation and members of the Howard County Council and state delegation.

State Launches Ad Campaign to Combat Foreclosures
Gov. Martin O’Malley, Baltimore City Council President Stephanie Rawlings-Blake, Department of Labor and Licensing (DLLR) Secretary Thomas Perez, Department of Housing and Community Development Secretary Raymond Skinner and other officials have kicked off a comprehensive, multimedia advertising campaign to help tackle rising foreclosures in the state and ensure Maryland homeowners are aware of the programs available to provide assistance and relief.

The various entities have joined forces to develop the statewide campaign, which includes such components as radio spots, print ads, postcard mailings, bus ads, billboards and other outreach.

“Whether out of fear or embarrassment or misunderstanding, too often homeowners ignore the letters in the mail, afraid to face the reality of their circumstances,” said Perez. “This ad campaign is really about closing the gap that we see so often in foreclosure cases. We have help to offer, and we need to do everything we can to make sure homeowners can access that help.”

The “Mortgage Late? Don’t Wait!” slogan is the theme of the public education campaign. With homeownership and neighborhoods threatened by defaulting sub-prime and “exotic” mortgages, O’Malley in June 2007 initiated a comprehensive effort to combat rising foreclosure rates in Maryland.

They included the HOPE Initiative, or Home Owners Preserving Equity, which provides access to counseling services and resources for homeowners needing to refinance, and created the Homeownership Preservation Task Force to study the issue and make recommendations for reform.

Arundel CVB Kicks Off ‘Tourism Works’ Web Page
The Annapolis & Anne Arundel County Conference and Visitors Bureau (CVB) is marking the silver anniversary of National Tourism Week by launching a new web page that spells out the vital role tourism plays in the local economy.

CVB President and CEO Connie Del Signore said the value of the web page as an informational tool will continue to grow far beyond this year’s National Tourism Week celebration, which ends on May 18.

“This week, we are sharing the fact that nearly 6 million visitors to Anne Arundel County left behind more than $1.8 billion in new revenues in 2006,” said Del Signore. “We are letting readers know that each Anne Arundel County household saves an average of $335 in taxes annually thanks to the nearly $66 million in tourism tax revenues that pour into the county each year. Seventeen million of these dollars are used to help fund public education.

“We are spreading the word that if it weren’t for tourists, Anne Arundel County taxpayers would find themselves paying more income taxes to maintain the level of county services they currently receive,” she added, noting that the web page could eventually provide a source for sharing the results of the CVB’s most recent marketing efforts.

Gansler Announces Agreement With Facebook to Make Site Safer for Underage Users
Maryland Attorney General Doug Gansler has announced that Maryland, 48 other states and the District of Columbia have reached an agreement with the social networking web site Facebook that will better protect children from predators and inappropriate content.

The agreement is similar to one that the states reached in January with MySpace. As part of that agreement, MySpace agreed to head the task force, which Facebook has now agreed to join, to explore and develop age and identity identification tools for social networking sites.

Changes agreed to by Facebook include providing automatic warning messages when a child is in danger of giving personal information to an unknown adult, restricting the ability of users to change their listed ages, acting more aggressively to remove inappropriate content and groups from the site, and requiring third party vendors to adhere to Facebook’s safety and privacy guidelines.

Under the changes, the first time a Facebook user wants to change his or her age, web site staff will review their profile to determine whether the change is appropriate. Facebook also has agreed to maintain a list of pornographic web sites and regularly sever any links to such sites.

Sourcefire Founder Named One of the Most Influential Execs in IT
Open source innovator and SNORT creator Columbia-based Sourcefire has announced that company founder and CTO Martin Roesch was named to eWeek’s Top 100 Most Influential People in IT list, which also includes industry luminaries Larry Ellison, Steve Jobs, Steve Ballmer and Michael Dell.

Ziff Davis Enterprise editors selected individuals who are on the leading edge of technology development — those who are not only building products, but shaping the culture of information technology. Compiled by the editorial staff of eWeek and sister publications CIO Insight and Baseline, the list recognizes individuals with a tangible track record of IT success, far-reaching influence and the ability to effect change and a deep level of engagement in developing emerging technologies.

Merkle, U.S. Navy Memorial Team to Boost Fundraising Results
Merkle, a large database marketing agency headquartered in Lanham, has announced an agreement to work with the U.S. Navy Memorial in Washington, D.C. Under the terms of the three-year, multi-million-dollar contract, Merkle will help the nonprofit increase donor awareness, involvement and commitment by providing a complete range of agency services that include strategic analytical guidance, creative design and database hosting for the organization’s direct programs.

The U. S. Navy Memorial honors the men and women of the Sea Services, including the Navy, Marine Corps, Coast Guard and Merchant Marines. Adjacent to the Memorial’s outdoor plaza is the Naval Heritage Center with educational displays, a 242-seat theater, and the Navy Log — an online social network for Navy people providing a place for shipmates to reconnect with each other.

 A recent addition to its slate of services is Navy TV, an Internet television network with a series of videos about Navy people and those who support the Navy. Access is available at www.navymemorial.org, www.navylog.org and www.navytv.org.

“We have several goals that we are planning to accomplish in the next few years,” said Rear Admiral Richard A. Buchanan, USN (Ret.), president and CEO of the United States Navy Memorial. “Among those who served, we are looking to increase participation in the Navy Log and enhance the connectivity between shipmates. For the general public, our goal is to increase awareness of our nation’s rich maritime history and the efforts and commitments made by the people of the Sea Services to its strength and freedom. In selecting Merkle, an organization with a strong background in working with nonprofits, we expect to achieve these goals.”

CBTD Hires New Direct Contact to MSBDC
The Center for the Business and Technology Development (CBTD) in Howard County has hired Mary Redmond as the new business counselor for the Maryland Small Business Development Center’s (MSBDC) satellite office at the center.

As the new counselor, Redmond will provide counseling, technical assistance, training and guidance for startup entrepreneurs and expanding companies in Howard County. Redmond comes from a diverse background in management and marketing which includes working as project manager – training and marketing director of the SBDC at Towson University.

Healthy Howard Access Plan Receives Award
County Executive Ken Ulman and Health Department officials received the Local Agency Award given by the American Society of Public Administration’s (ASPA), Maryland Chapter, in recognition of the Healthy Howard Plan.

The award recognizes a federal, state, local or nonprofit agency for innovation in areas such as public policy, financial management, human resources, business processes or information technology. The emphasis of the award is on making government more effective, efficient or economical. The Healthy Howard Plan, which begins providing services in October, was chosen because of its innovative public health policy to address lack of access to health care by many of its citizens.

Ulman to Host Reception for Howard County Artists
County Executive Ken Ulman will recognize the work of 27 Howard County student artists and a local photographer when he hosts a reception in their honor this evening at 5 p.m. at the executive’s offices, which are located at 3430 Courthouse Drive, on the third floor of the George Howard Building in Ellicott City.

Sydney Cousin, superintendent of Howard County Schools, will also be on hand. The students’ artwork was selected from the annual student art display at The Mall in Columbia for special exhibition in the County Executive’s office suite on the third floor of the George Howard Building. The black and white photography is courtesy of a Howard County resident.