Petters Group Magazine Summer 2007 by goodwida

:: T A B L E

of CONTENTS

: :: :: :: ::: :: :: :: ::: :: :: features 26 : : MAKING A DIFFERENCE TIM TAKESUE If you want a computer, camera or great deal on jewelry, uBid’s Tim Takesue is the man with the merchandise.

28 : : EXECUTIVE PROFILE PATTY HAMM As the people person at Petters Group, Patty Hamm strives to develop learning programs for everyone.

30 : : INSIDE GLANCE YFLY.COM The Millenial generation has moved the social networks online.

galleries 20 : : JOHN T. PETTERS FOUNDATION Scholarships awarded for the 2007 travel abroad programs.

22 : : CHARITABLE GIVING GALLERY The hot colors for charities are pink and yellow.

48 : : PEOPLE & PLACES From Las Vegas to Orlando, our companies shine.

ON THE COVER SUN COUNTRY AIRLINES

This hidden gem of the

airline industry also has another secret – its employees. Their spirit and drive will take Sun Country to new heights.

48 IN

every

ISSUE

letter from tom

:: 6

letter from andrea

:: 8

around the companies

: : 24

connecting points

:: ::: :: :: :: ::: :: :: :: ::: :: :: :: ::: :: ::

departments 40 : : LEARNING CENTER Rollins College and Petters Group work to expand their learning opportunities.

42 : : VALUES EXECUTION Polaroidâ&#x20AC;&#x2122;s Instant Film teams shine as they execute projects. CARING Setting you as a priority, from Dr. James Mellin.

46 : : CORNERSTONES STRATEGY How can a company connect the dots?

47 : : AROUND THE WORLD Build that relationship overseas before you need it.

38XXwhere where in the in the world world is tom? is tom? : : : :53XXthethe petters petters matrix matrix : : :54 : XX reality reality bytes bytes

S UHME M L LE O R

2 0 0 76

:: P E T T E R S GROUP

LETTER from TOM

DEAR FRIENDS, As you begin to read our third edition the Petters Group magazine, you will note a good deal of the news is about growth and activities across our portfolio companies. While for many, this presents a picture that we are getting bigger and keeping ourselves quite busy. I think it important to reemphasize what growth means to us at Petters Group Worldwide. Bigger is not always better. Bigger is not what we are striving for at Petters Group. Growth at Petters Group means we are becoming stronger. As you read about the new talent joining the organization, the diverse projects across companies, and our focus on employee and communities, it’s always a challenge to make everyone understand what growth really means. Growth is very important at Petters Group Worldwide – growth of the human spirit, growth in bottom line earnings, growth through making mistakes, growth by learning. The price for membership within this organization is excellence. Growth is not defined by quantity, rather quality!

• Growth is having created an esprit d’corps. We have grown in clarity inside and outside of our company about what Petters Group is and what it is not. We have created focus with our cornerstones and core values. There is nothing that makes me happier than to see an energetic smile on an employee, or customer, because they are part of Petters Group.

“Undertake something that is difficult; it will do you good. Unless you try to do something beyond what you have already mastered, you will never grow.”

• Growth is getting savvy in identifying and attracting top talent across our organizations. These are the people who get me excited everyday with fresh ideas and passion about their work. Our growth comes from listening and learning with each employee whether it be our summer interns fresh with ideas from young unspoiled minds that have not been told ‘we have tried that before, it won’t work’, or seasoned executive bringing us their wealth of lessons learned. This becomes exemplified in the story on our Worldwide Forum in February. • Growth has come with our efficiencies in work processes and focus on profitability. As we add companies to our portfolio we also had to make tough decisions for change regarding restructuring, discontinued investments, and saying no to some new ideas.

– RONALD E. OSBORN

There are exciting projects a foot that add to our growth. Many of these are outlined in the stories you will read on the following pages. Sun Country “wows” us everyday with their customer success stories. Polaroid continues to find market opportunities and its trek to re–invent itself again as it has over and over since Dr. Edwin Land founded the company over 60 years ago. Juice Media is forming business synergies across the companies with great customer data collection and delivery in a far more efficient manner. I am also very excited about our new Petters Real Estate Ventures which is based in our West Palm Beach office. This high spirited, seasoned and talented group will drive our success in opportunistic real estate deals…focused on hotels, resorts, and other commercial developments. I wish you the best of summer adventures with your family and friends. Thank you for your continued dedication to our companies.

TOM PETTERS

SUMMER 2007

LETTER from ANDREA

LEARNING THE BASICS x o x o o

ic Tac Toe is a kids game we have all played for fun without giving much thought to what it was teaching us for our futures – strategy, taking turns and patience, as we waited to earn that correct spot to put our mark. In the fast paced businesses we operate in each day, we do not have the time to stop and think about how we are going to make our mark, relying more on our basic instincts about a situation, hoping we are right. One of my favorite authors is Robert Fulghum who wrote All I Really Need to Know I Learned in Kindergarten. While some may say he oversimplifies life, I like the way he turns ordinary life occurrences into basic points to ponder, like where should I put my X. This allows you to reflect on and more clearly think though your own problems or tasks at hand. I have shared some of his stories with my five year old and he will say, “What is so tough about that? Everyone knows you are supposed to share your crayons.” We all know it but sometimes forget.

While assembling this issue of Petters Group magazine, we discussed many goals for this publication and it kept coming back to Making Connections. A simple process one would think but, as many people learned at the Petters Group Forum in early February, there are more connections out there than are initially seen. Throughout this issue we hope you see the connecting of employees, connecting of companies, connecting of strategies and connecting of visions. In our cover story on Sun Country Airlines, it is clearly the employees connecting with their passengers which have earned the company such a loyal customer base. The next time you get an opportunity to sit down with a child and play a game of Tic Tac Toe watch how they play the game. You will see learning going back to the basics, which could help you determine where to put your X.

x o x x o o o ANDREA MILLER

:: P E T T E R S GROUP

VOLUME 2 ISSUE 1 PUBLISHER Thomas J. Petters

EDITORIAL EDITOR Andrea Miller

andrea.miller@pettersgroup.com ASSISTANT EDITOR & WRITER Tiffany Nash CONTRIBUTING EDITOR Laura Haraldson

Joe Delmont, Tristan Galvan, Tom Gilgenbach, Kristen Hamilton, Steve Harper, Yuta Ito, Lynne Labanara, Scott Meyer, Mollie O’Brien, Liz Orenstein, Lorrie Parent, Sharleen Reyes, Anne Slein, Carter Taylor

CONTRIBUTING WRITERS

ART PRODUCTION MANAGER Yola Hartmann CREATIVE COORDINATOR Sarah Sucansky DESIGN/ART DIRECTION Heather Nelson CONTRIBUTING DESIGNERS

Emily Bretzel, Dave Koehler, Dana Oelfke CONTRIBUTING PHOTOGRAPHERS

Todd Buchanan, Tate Carlson CIRCULATION CIRCULATION DIRECTOR Corey McMahon CIRCULATION ASSISTANT Jessica French

ADVISORY BOARD Bill Dunlap, Patty Hamm, Mary Jeffries Special thank-you to the staff of Metropolitan Media Group for all their assistance in producing the Petters Group magazine. —————————————————————————— HOW TO REACH US

Petters Group Worldwide 4400 Baker Rd., Minnetonka, MN 55343 www.pettersgroup.com

ADDRESS >

Provide feedback, story ideas and events to magazine@pettersgroup.com REPRINTS > Contact Tiffany Nash at tiffany.nash@pettersgroup.com

Petters Group is published by Metropolitan Media Group exclusively for Petters Group Worldwide.

UPFRONT

around the companies

AND YOU ARE? Jennifer Gordon’s “Bear Belly” and uBid.com CEO Bob Tomlinson at the press conference in January.

Fidelica Participates in ID System for Dulles Airport

Bear Belly uBid Ad Draws National Attention

hen the Chicago Bears made it into this year’s SuperBowl™, Jennifer Gordon became very creative in order to get two tickets to the game. She went to the media offering her nearly nine month pregnant belly to be used as advertising space throughout the day on Sunday, during and after the game. Her story ran nationwide and she received over 200 inquiries and decided on Chicago based uBid.com. A press conference on January 29th to announce the decision drew all the Chicago major media, which lead to the story receiving national coverage all the way through the game on Sunday. “uBid is all about innovative and creative ideas and we applaud the spirit in which the advertising

:: P E T T E R S GROUP

space became available,” said Robert Tomlinson, CEO of uBid. “We are proud to ‘give birth,’ so to speak, to this fun opportunity and see it as a way to expand our brand recognition via a nontraditional manner.” After the game, uBid.com launched the largest “baby pool” in the country and over 1800 people entered guesses on the exact date, time and weight of the Gordon’s impending arrival. Winners received two tickets to the 2008 SuperBowl or a 42” Polaroid™ LCD television. On March 9th, Jennifer and her husband, Mitch, gave birth to a baby boy weighing 7 lbs 11 oz. For more information on uBid.com, visit the investor relations link located at ubid.com.

FIDELICA MICROSYSTEMS, a SpringWorks portfolio company, has successfully completed a test of their smart card technology at Dulles Airport in Washington, DC. The card used by freight drivers identified who they were and determined where their cargo was headed and how long it should take to get there. If the driver did not report to that location in the allotted time, a signal went to security to follow up. This program, done in conjunction with Unisys, United Airlines and CT Solutions, is now being developed into a more comprehensive program for Ronald Reagan International Airport in Washington, DC and should be implemented in May. The success of this program has allowed Fidelica to roll out their smart card development platform featuring a fully-embedded biometric system. Fidelica’s platform is the first in the industry that allows fingerprint imaging, enrollment, and authentication to be contained entirely within a standard credit card-sized package. Utilizing the platform, integrators can create a smart card with a radically advanced feature set that works with existing card readers, wireless systems, and other card infrastructure. Biometric security can be added to a system simply by upgrading cards. For more information, visit fidelica.com.

ELEMENT ELECTRONICS™ MAKES A SPLASH AT CIRCUIT CITY

SUMMERTIME IS ALL ABOUT MAKING A SPLASH and Element Electronics™ is doing just that. From a limited release during the 2006 holiday season to an entire line of impressive, affordable high definition LCD TVs, Element Electronics™, a Petters Consumer Brands brand, is set to rock one of the nation’s hottest retailers, Circuit City, this summer. With available screen sizes ranging from 15” to 40”, the slim Element Electronics™ LCD TVs offer a wide array of affordable, stylish alternatives to the higher-priced televisions on the market. “Because LCD TVs are such a popular commodity, we wanted to stay as competitive as possible,” said Bill Taylor, Director of Product Management. “By developing a brand that is even more affordable, we fill a gap in the market and offer our retailers and consumers a variety of smart choices.” Be on the look-out for the sleek, silver high definition Element Electronics™ LCD TVs at Circuit City locations nationwide, or check them out online at elementelectronics.com.

WAL-MART RECRUITS POLAROID FOR GROUNDBREAKING INVENTORY PROGRAM : : POLAROID IS ON THE GROUND

BIDDING ON SUCCESS

uBid.com reports 4th Quarter Results

ust one year after going public, uBid.com Holdings, Inc. (OTC BB:UBHI.OB -

News) reported their gross profits of $3.2

FLOOR OF WAL-MART’S RFID (Radio

million were up 63 percent. “Our fourth quarter results were driven by a conscious

Frequency Identification) program. The

effort to rebalance the marketplace between uBid’s Certified Merchant Program and the

sophisticated, forward-looking program

Direct Channel. The period was also characterized by benefits derived from our

will change the way companies do inventory

expense control strategy which has reduced our cost structure materially from a year ago,” Bob Tomlinson, uBid’s President and CEO said. During the remainder of 2007,

and planning with the implementation of

they will continue to leverage their strong foundation anchored by the success of our

postage sized tags that remotely retrieve

Certified Merchant Program, which now has 2500 merchants in the program.

product data via radio waves. The FLM373B (a 37” LCD TV) was the first Polaroid

Some of the highlights for the fourth quarter of 2006 include: • Gross Merchandise Sales (GMS) in uBid’s Certified Merchant Program, a key business metric, were up 21.1% to $13.8 million compared to $11.4 million one year ago.

product tagged at the Gilbert, CA ware-

• Gross profit was $3.2 million or 24.4% of net revenues versus $1.9 million or 13.5%

house, providing tracking at three different

in the third quarter of fiscal 2006.

distribution centers (DC) and every Wal-

• Net loss of $170,000 compared to a net loss of $2.7 million in third quarter 2006 and $2.6 million in fourth quarter 2005.

Mart store associated with the DC. Patricia

• uBid.com’s Certified Merchant Program (UCM) grew by 19.4% to 2,049 participating

Bowe, EDI Manager at Polaroid, said Wal-

merchants on December 31, 2006 from 1,716 merchants on September 30, 2006. This

Mart is committed to growing the RFID

also represents an increase of 226% from December 31, 2005.

program. “We hope to include more

• Active Auction Participants totaled 330,000, while the number of Auction Events increased 47.0% to approximately 580,000 from 395,000 in the fourth quarter of 2005.

Polaroid consumer electronic products in

• Customer registrations totaled approximately 57,000 in the fourth quarter compared

this program, because in the near future,

to approximately 54,000 in the third quarter of 2006.

the more we know about inventory quanti-

• Petters Group Worldwide purchased uBid.com in 2003 and is currently a minority

ties and locations, the better Polaroid and the retailer can forecast.

share holder of uBid.com. For more information, visit ubid.com or in the stock market, uBid.com Holdings, Inc. (OTCBB: UBHI)

SUMMER 2007

UPFRONT

around the companies

BIG SPLASH IN SAN DIEGO Aaron Chang Sponsors Water for Life Benefit

Aaron Chang

Aaron Chang prints were on display for attendees to view at the benefit.

aron Chang International was a proud sponsor of the Water for Life Benefit, an event conceived and executed by the United Nations Association of San Diego. The event raised awareness of important clean water issues and generated funds to support local and global water-related projects. All proceeds from the event benefited Surfrider Foundation and SurfAid International,

HEADING TO THE BEACH

two organizations dedicated to our oceans and clean water. More than 600 people attended the fundraiser to show their support for the cause. Aaron Chang held a successful art auction and poster signing. His award winning slide show, Living in the Light, was a featured presentation. World Water Day (March 22) and the Water for Life Decade (2005-2015) aim to educate communities about local and global

Aaron Chang Swimwear in the Media THE AARON CHANG SWIMWEAR LINE is the talk of the media this year appearing in more than a dozen women’s fashion and swimwear trade magazines. Topping the list is Women’s Health who featured the brand on their April cover. Other consumer publications to highlight Aaron Chang this summer will be CosmoGirl, Lemonade, Seventeen, Fitness Magazine, Free Surf Hawaii, Oxygen and Transworld Surf. You can find Aaron Chang swimwear in Macy’s, Urban Outfitters, Gottschalk’s and Victoria’s Secret catalogs.

Aaron Chang

water issues, a concern San Diegans know well. Locally, San Diego and Baja, CA struggle with the diminishing water supply and water pollution. More serious water concerns exist internationally, including the more than 5 million people who die of water born disease each year. In celebrating World Water Day, the Water for Life event promoted international commitments made on water-related issues through the United Nations Millennium Development Goals. For more information, visit un.org/waterforlifedecade or aaronchang.com.

KEY MANAGEMENT NEWS

Foundation Executive Director Dawn Fish THE JOHN T. PETTERS FOUNDATION RECEIVED A BOOST in March with the addition of a newly hired Executive Director. The position was created to bring in a team member who could provide many years of non-profit experience and higher education contacts in the Twin Cities to help build programming. That is exactly what new Executive Director Dawn Fish is bringing to the table. Fish previously led the fundraising efforts of several key organizations within the Twin Cities including Scholarship America, the Minnesota Medical Foundation at the University of Minnesota, and Resources for Child Caring in St. Paul, MN.

The Aaron Chang H20 Camisole Bra Top and Classic Hipster Bottom were pictured on the April cover of Women’s Health

Like many, Fish was moved by John Petter’s story. Now, impressed with the momentum of the Foundation, she is excited to bring further growth and exposure to the cause.

:: P E T T E R S GROUP

THE PEOPLE, THE PLACES, THE PRODUCTS : :

PCB is on the rise

he Petters Consumer Brands (PCB) team has been busy getting appli-

ances out and into the stores. “We’re the fastest growing major appliance company in North America,” says Lenny Paul, PCB General Manager. “We’ve landed

ONTO A NEW ADVENTURE

our first national account with a 191store major appliance chain and

Polaroid Eyewear Sold to StyleMark STYLEMARK, A LEADING SUNGLASS COMPANY in the USA, acquired the Polaroid Eyewear International business, the eyewear division of Polaroid Corporation on March 5, 2007. In the acquisition, they acquired Polaroid Eyewear’s sales and marketing organization throughout the world along with manufacturing, R&D, finance, human resources, supply chain activities and a 200,000 sq. ft. Polaroid lens manufacturing facility located in Vale of Leven, Scotland and Polaroid Eyewear will continue to be based in Zürich, Switzerland. All 140 Polaroid Eyewear employees will transition to the new company. “Our team has been proud to be part of Polaroid and we look forward to a bright future with StyleMark here in Scotland,” said Paul Sheerin, VP of Global Operations for Polaroid Eyewear. “We look forward to research and development investment that will set our company apart as we develop the next generation of lenses.” Polaroid, currently one of the leading sunglass distributors in Europe, has been a strong eyewear brand

Sunbeam™ will soon be added as the

since the 1960’s with a comprehensive network of subsidiaries and distributor partners. As part of this agreement, a joint venture has been agreed to between StyleMark and Petters Group to continue working together. “This move will see the Polaroid brand of eyewear prosper and grow under the StyleMark umbrella,” said Tom Beaudoin, CFO/COO of Polaroid Corporation. “It will also enable Polaroid to leverage the efficiency and value of its assets as we continue to focus on the strategic growth of our successful consumer electronics business.” StyleMark sells sunglasses and other optical products under 20 different brands, including Nine West, Speedo, Ocean Pacific, Disney and Revlon. The acquisition gives StyleMark global reach - including distribution in 67 countries - and makes the company the world’s largest mid-tier sunglass company with unit sales exceeding 50 million pairs of sunglasses. For more information, visit polaroideyewear.com.

fifth largest seller of major appliances in the United States.” Success continues in compact appliances with Target and Circuit City shelving countertop microwaves, compact refrigerators, wine cellars, and a beer dispenser. A new licensing deal with CocaCola® launched a line of picnic gear and beach chairs for the World of CocaCola® stores. Additionally, PCB has recently landed two Oster™-branded countertop microwaves and an upcoming wine cellar into Best Buy. With deals in the making involving Menards and Kohl’s, it’s a mystery as to when this team actually sleeps! Not only has PCB been expanding the appliance business, but they have strengthened their licensing relationship with Jarden Consumer Solutions (JCS). To acknowledge how well they have

TARGET SHOWCASES HOT POLAROID $99 GADGETS

LOOKING FOR A COOL DEAL THIS SUMMER? Be sure to check out some of

been executing, PCB was awarded the Jarden Consumer Solutions People Award for March 2007. The People

the latest Polaroid portable electronic devices featured on an isle display at

Award, one of five licensing awards pre-

Target. The eclectic assortment includes a Portable DVD Player, a Digital Photo

sented by JCS to its licensees, commends

Frame, a 5 Megapixel Digital Camera, a Digital Video Camera and Polaroid’s new

a team for their outstanding performance

Portable Media Player with 2.2” screen perfect for watching your favorite movies

in the field of excellence.

on the go. The feature display will be in all Target stores through July. Products

For more information on Sunbeam appli-

will move to a more permanent home on the shelf beginning in August.

ances, visit sunbeammajorappliances.com.

SUMMER 2007

UPFRONT

around the companies

Stars Love Polaroid at the Sundance Film Festival

THE “IN” LIST

Gotham Magazine Recognizes Polaroid MOVE OVER PENELOPE CRUZ, Jimmy Fallon and AG jeans; Gotham magazine, the embodiment of a sophisticated New York lifestyle, has pronounced the Polaroid i630 digital camera as “In”. Written by the local tastemakers themselves, Gotham is considered the “gold

Lea Thompson from the Back to the Future movies stopped by for her Polaroid camera.

BY TOM GILGENBACH

s far as business trips go, a trip to the Sundance Film Festival to gift Polaroid digital cameras and photo frames to movie stars is pretty good. So when Julie Goetzke, Polaroid Graphic Designer, and I got the word that we would jet off to exotic Park City, Utah last January, we were pretty excited. It’s not every day you get paid to mingle with the stars. I’m not a seasoned business traveler, so I worried from the start about keeping expenses down. We saved hundreds right off the bat with a multistop, late-night flight that took us to Salt Lake City via Las Vegas. I had visions of winning a big payday with my

:: P E T T E R S GROUP

pages” for the best New Jeremy Sisto from Six Feet Under really dug the digital frames.

new blackjack formula but our layover was just 45 minutes. If only there was more time! Next, I saved even more by booking a night at the Wayfarer’s Inn and Truckstop, conveniently located in the heart of Salt Lake’s trucking district and just 50 feet from I-80! Apparently $42.95 a night is well below the cutoff for nice hotels. Something I didn’t find out until we drove up was the hotel is actually “under” I-80. Not wanting to incur Jack Goetzke’s, VP Logistics and Service of Polaroid, wrath for putting his daughter in harm’s way, even if it did save a ton of cash, I reluctantly agreed to Julie’s pleas for a real hotel. The next day, once the airline found our

luggage, we headed off to the mountains and Park City. Movie stars here we come! The very first day Julie and I rubbed elbows with big stars like Nick Nolte, Timothy Hutton, Danny Masterson (That 70s Show), Aaron Ruell and Efren Ramirez (Kip and Pedro from Napoleon Dynamite) and Katherine Heigl (Grey’s Anatomy). We did our best to gift just to the stars, and, lucky for us, Fingerprint Communications, one of Polaroid’s PR agencies, was on hand to help us single out who was a star and who was a part of the entourage. Press was on hand from New York, Los Angeles, Australia, Germany, France, and everywhere in between. We did interviews

York City has to offer.

promoting the digital camera and photo frame with reporters from television, radio, magazines, and websites. There was a clip of Julie demonstrating the digital picture frame to Tara Reid on E! Entertainment and a revealing give away of a Polaroid camera on Jay Leno! By the end of the trip, we gifted to hundreds of Hollywood stars and movers and shakers and took dozens of pictures. More importantly, we worked the media for thousands of dollars worth of public relations for Polaroid. On the last day, Julie even met Dustin Diamond; you may know him as Screech from “Saved By The Bell”. And they say you can’t have fun on a business trip!

LONG HISTORY

Polaroid Japan Celebrates 47th Year

olaroid established a small representative office in Tokyo, 47 years ago, as its 4th overseas location. The first couple of years for Polaroid Japan were challenging as they struggled to create Polaroid brand awareness and an understanding of Dr. Land’s break-through invention, the Polaroid instant camera. At that time, the instant camera was obscure and expensive, making it difficult to promote and sell to the general population in Japan. Through Polaroid Japan team’s power, passion and enthusiasm Polaroid earned a position in the market. A current brand awareness survey shows 80% brand recognition of Polaroid. In fact, there are still 5,000 active Polaroid Japan club members. Popular among Polaroid enthusiasts, the SX-70 and 680 cameras are still available over the internet and range in price from $600 to $1000. Polaroid has since transformed its core business from instant to digital, and the Japanese team is dedicated to sustaining the value and quality of the Polaroid brand in the years to come. As the transformation continues, Polaroid Japan has recently launched a string of events.

fantastic view of the Roppongi Hills of Tokyo on November 24, 2006. Mr. Goto, a famous editor and creative director, acted as host of the photo event. Eight energetic photographers, artists, and Polaroid enthusiasts participated. Their fresh, artistic work was exhibited through 100 digital picture frames. The one day photo event successfully attracted 2,000 people to visit the photo exhibition, including representatives from 40 fashion, culture, and IT publications.

TOKYO PHOTO VIEW Nippon Polaroid (NPKK) held a 20 hour photo event on an observation deck with a

DIGITAL LAUNCH A press conference for the Polaroid 20” and 32” LCD televisions and the 5.6” and 10.4”

Toyko Photo View

PRODUCT SPOTLIGHT

digital picture frames was very well attended. The conference was held at the Royal Park Hotel in Tokyo, where 55 media representatives met for the product launch. As a result, the news was picked up by 70 media representatives, successfully promoting the Polaroid LCD televisions’ and digital picture frames’ debut in the Japan market. It was recently reported by Kojima, a customer and major retailer in Japan, that Polaroid LCD television sales jumped to number eight among strong national brands. With an impressive 47 year history, we wish Polaroid Japan at least another 50 years of prosperity.

: : Polaroid Maps Mexico

POLAROID’S ANSWER TO GPS (Global Positioning System) for Mexico is here. The GPS with 3.5” screen and specialized maps for Mexico is set to launch at Sam’s Club Mexico in early June. The launch is significant because Mexico is a largely untapped market when it comes to GPS with only a few Mexican cities mapped to date. The MGM-03510K features a touch-screen user interface, audible and visual navigation prompts in the user’s choice of English or Spanish, and has built-in memory with preloaded maps. The unit also includes hundreds of thousands of points of interest like restaurants, gas stations, hotels and historical landmarks and it provides the best routes to any destination. Carl Alleman, Polaroid Product Manager for GPS, said the unit could be the start of a big movement south of the border. “Our initial Sam’s Club unit includes maps for three of Mexico’s biggest cities: Mexico City, Monterey, and Guadalajara. But, as the Mexican market grows, and as more cities are mapped, Polaroid will be in position to provide new units that include the most updated maps of Mexico and other features.” Alleman added that MGM-03510K owners would likely also be able to expand the use of their GPS by downloading updated maps as they become available.

SUMMER 2007

UPFRONT

around the companies

Have a Picnic with PCB and Coca-Cola

HIGHEST-QUALITY DVD DEPOSITIONS : : YesVideo

Introduces YesLaw DVD

he Coca-Cola® Company has joined Petters Consumer Brands (PCB) to produce and sell their Spring & Summer 2007 Picnic Collection which includes sets of tumblers, plates, baskets, blankets, napkins, placemats and more. The collection debuts at the grand opening of the new World of Coca-Cola® store in Atlanta, GA on May 24. The new 75,000 square foot World of Coca-Cola museum and store are expected to attract anywhere from 1.2 million to 1.5 million visitors every year. “We are very excited to be working with one of the most recognizable and successful brands in the world,” says Ann Karsh, PCB Product Manager. “Coca-Cola is a great partner and these are just the first of many ventures with them. We will continue building our relationship, hopefully allowing us to produce and sell an even larger variety of Coca-Cola branded products.” The Coca-Cola Spring & Summer 2007 Picnic Collection was inspired by one of a series of commissioned paintings by artist Bob Peak in the 1960s. Mostly recognized for his influence on the modern movie poster, Peak’s commissioned works depict people relaxing, traveling, and enjoying life with Coke. Peak was recognized with over 100 awards for his accomplishments in advertising and illustration. In addition to the Picnic Collection, PCB is working with Coca-Cola on a line of designer beach chairs that will also debut at the grand opening of the new World of Coca-Cola store. To see these unique items and many others, visit coca-colastore.com after May 24.

VALUES MESSAGE

YESVIDEO, developer and licensor of the industry-leading YesLaw CD deposition product, will be announcing the release of a new YesLaw DVD to the law technology marketplace at LegalTech 2007. The current user base of the YesLaw CD product will find the same core functionality in the new YesLaw DVD software, including a fully synchronized transcript and video, and the ondisc toolset that enables easy viewing, editing, and exporting to the leading trial presentation software products such as Powerpoint™, Sanction™, Summation™ and several others. The new YesLaw DVD contains high-quality MPEG2 video as well as YesVideo’s latest version of patented deposition management tools. This new product enables users to review deposition videos from a standalone DVD player or insert the DVD into a PC and take advantage of the on-disc editing and sharing applications. YesLaw DVD brings an expanded set of tools that simplify the effort of preparing for trial. YesVideo has added the ability to link exhibits and the management of annotations to the transcript. Finally, YesLaw DVD has a new sleek interface that conforms to the style of professional legal presentations. YesLaw software and services are offered exclusively through an extensive national network of court reporting, legal video and litigation support firms. For more information, visit yeslawdvd.com.

: : Agility

IN THE ENTREPRENEURIAL ENVIRONMENT of the companies of Petters Group Worldwide, having new projects being added to one’s to-do list is not uncommon. For Jared Danielson, IT Consultant of Polaroid, these projects not only range in scale but in location. In January, Jared ventured to Las Vegas for 10 days to help set up, run show events and tear down the Polaroid booth at the Consumer Electronics Show. As soon as he returned, he went into planning sessions for construction on the new Minnetonka offices and for the Petters Group Executive Forum in Florida. Wires were being cut and rerouted in the Minnetonka offices as Jared was getting on a plane to go to Florida to run IT services for the Forum. After spending a week in Orlando, FL he went to the West Palm Beach, FL office to administer system upgrades before returning to Minnesota. Jared is now often seen walking the halls with a hard hat in his hand, blue prints under his arm and the ever present Blackberry™ either ringing or buzzing with messages. Thanks to Jared’s agility and positive attitude, all his tasks get checked off the list quickly.

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TRIO MARKETING ROLLS INTO STORES

NEW TECHNOLOGY

Media Backup Device Hits Canadian Test Market SEVERAL RETAILERS IN CANADA, including WalMart, are leveraging the Polaroid media backup device. The 40 gig unit is easy to hookup to any computer and lets users copy all of their digital photos in minutes. Doing so protects your digital memories from hard drive crashes, accidental erasure, and other unforeseen

ith over 60 portfolio companies under Petters Group Worldwide, it’s only natural that a few remain quietly behind the scenes. Trio Marketing, however, is not an investment to remain swept under the rug; they sell them instead. Trio Marketing is a designer rug road show company that sells high end rugs exclusively at Sam’s Club stores for half the price they usually cost in high end or independent stores. There are no immense mark-ups, no false moving sales advertised, and, best of all, they sell all kinds of rugs, from hand knotted to machine-made, in all styles and sizes. Trio Marketing brings in 16-20 pallets of their rugs to display for customers to buy on the spot or special order and have it delivered. So, how often are the 11 day shows at Sam’s Club? There is no set schedule or formula. Sam’s Club provides rankings of their highest grossing stores and Trio Marketing requests certain dates for those particular locations. Over 40 percent of the top 150 clubs are in Florida and Texas, with Florida being the biggest contender. Shows across the state are typically larger and more profitable. Minnesota comes in third in showings. Trio Marketing also receives special invites for store openings and managers often contact the company for shows after seeing them at other stores or from word-ofmouth. They have already branched out to Arkansas, Missouri and Michigan and select stores in Ohio, Georgia, Virginia, Iowa and Nebraska. “We have really grown since Trio’s inception a couple of years ago,” Mark Bolick, VP for Trio said. “In the last 4 months especially, we have seen tremendous expansion in the company.” Trio Marketing currently has a staff of 8: 6 full-time sales reps, including Bolick, 1 contractor, and Heidi Mueller, Account Specialist, who is based in the Minnetonka, MN office and covers everything from administrative duties to customer service to finance. “Trio Marketing is really starting to make a name for itself,” Mueller said. “We’ve just added 2 new vendors to the roster, and we’re achieving great praise from Sam’s Club.” At the recent Sam’s Club “Year Beginning Meeting”, a yearly manager’s conference in Kansas City, Trio Marketing was 1 of only 3 up and coming sellers invited to showcase. “Currently, we are scheduled out to July and we have just been granted the unique opportunity to schedule the rest of the year,” Bolick added. This momentum has Trio Marketing looking at future opportunities as well, including a company website and making a presence at select Costco stores.

issues. With 27 billion digital photos taken in 2006, it’s easy to see why such a device would be a hit with photographers, especially when you consider over half of those images are not backed up However, the concept is so new, customers need to be educated before the product enjoys widespread retail success. The Canadian markets are providing that education with in-store assisted demonstrations of the Click-Free™ technology. Polaroid Product Manager Michelle Montazeri is optimistic that success in Canada will translate to other markets. The Canadian experience is teaching us the best ways to educate our customer on what the media backup device can do,” Montazeri said. “Doing so will prepare us for a worldwide audience. I’m confident a sell-through in Canada will lead to a U.S. introduction this fall.” The media backup is already turning heads with positive reviews from the International Consumer Electronics Show last January, and in several magazines and websites. A second press rollout to major newspapers and magazines in North America is slated for Mother’s Day.

SUMMER 2007

UPFRONT

around the companies

Legal Eagle Soars to the Top David Baer Named as an Attorney of the Year

very year, Minnesota Lawyer, “the premier newspaper serving the state’s legal profession”, celebrates and honors the 15 most accomplished attorneys of that year. One of the 15 honored for 2006 was Petters Group Worldwide’s very own Chief Legal Officer, David Baer, one of the youngest lawyers to ever receive the honor. Nominations for Attorney of the Year come directly from the legal community, and Minnesota Lawyer’s editorial panel makes the decisions. On February 22, honorees were brought together at the Attorneys of the Year Award banquet, held at the Hyatt Regency in downtown

Minneapolis. The event received wide attention in the area’s business community and was promoted throughout the publications of the Finance and Commerce Media Group. Minnesota Lawyer even published a news supplement profiling Baer and the other honorees for their “legal intelligence, perseverance in the face of tough advocacy, dedication to the profession of law, service to their organizations and solutions to daunting legal problems.” Congratulations David! We are all proud of your hard work “connecting the dots” between the legal community and Petters Group portfolio of companies.

POLAROID HITS BRITISH STORES

Polaroid LCD TVs have made a huge impact

tronics market and convince customers to

in the United Kingdom consumer electronics

buy the brand,” said Peter McEleney,

market with the support of one of the most

Television Buyer for DSGi. “A few weeks after

recognized names in the U.K. stock exchange,

product hit stores, there was no debate.

Dixons Stores Group International (DSGi). In

Polaroid is a favorite with management and,

the U.K. alone, DSGi has 550 Currys retail

more importantly, store staff. Everyone is

stores and 155 PC World computer stores.

committed to selling the Polaroid brand and

The first to enter the market were the Polaroid 26” and 32” HD-Ready LCD TVs.

product continues to fly off the shelf.” With the success of the 26” and 32” LCDs,

Although optimistic, our international sales

DSGi extended their Polaroid TV family to

team and the DSGi management team could

include a 37” and both digital and analog ver-

have never predicted how successful the

sions of 15”, 19”, and 22” HD-Ready LCD TVs.

Polaroid brand would become in the U.K. consumer electronics scene.

“The entire UK team, in conjunction with the Enschede warehouse, has worked tireless-

In addition, PC World launched a national

ly to build a strong relationship with DSGi

newspaper and television ad campaign in the

and meet all expectations for delivery of a

U.K. featuring Polaroid LCD TVs. The 32” LCD

quality product,” said Steve Smith, Vice

The Polaroid LCD TV received a premiere location and signage at the PC World stores.

Our success in the U.K. is just the first

TV was promoted in a national Christmas TV

President of Polaroid U.K. “It took the com-

step in expanding Polaroid’s scope interna-

ad, along with the Sony Xbox™.

mitment of everyone involved to pull this deal

tionally and with strong customer support

off, and we will all benefit from the success of

from partners like DSGi, there will always be

Polaroid in the U.K.”

opportunity on the horizon.

“DSGi was unsure if Polaroid would fully lend itself to the European consumer elec-

:: P E T T E R S GROUP

60TH ANNIVERSARY OF INSTANT CAMERA

AFTER A DAY OF SIGHTSEEING IN SANTA FE, New Mexico, Edwin Land’s daughter asked to see the pictures they had taken. Dr. Land’s detailed explanation of film developing properties did nothing for the 3-year old, but sparked the inventor’s interest in an instant film process that would lead to the birth of an American icon, Polaroid

PRODUCT SPOTLIGHT

Sleek and Stylish POLAROID 7.0 MEGAPIXEL DIGITAL CAMERA

instant cameras. Little more than three years later, Dr. Land demonstrated the first instant camera on February 21, 1947. Dubbed the Polaroid Land Camera, it produced a

THE NEW POLAROID 7.0 MEGAPIXEL DIGITAL CAMERA is turning heads with its

black-and-white photo in just 60 seconds.

huge 2.5” TFT LCD screen, 3x super zoom, and built-in lithium-ion rechargeable battery, all encased in a compact, durable metal frame. It records AVI video clips with audio

KEY MANAGEMENT NEWS : : TOM SALMEN JOINS PETTERS REAL ESTATE GROUP As the investments in real estate for Tom Petters and Petters Group Worldwide

and is so tiny that it will fit comfortably in

continue to expand, the need for some-

your pocket. The t730 7.0 megapixel digital

one to actively manage them was creat-

camera will hit stores this spring in classic silver and a Target-exclusive red. “This is a great addition for Polaroid,” says Director of Product Management, Zak Kroschel. “The t730 will add another layer

ed. Welcome to Tom Salmen, Managing Director of the Real Estate Group. He will work with Tom Hay, EVP of Petters Group, to oversee the current investments and search out new opportunities in development and other high yield areas where value can be created. The

of quality and style to our assortment.”

Real Estate Group is involved in several

Michelle Montazeri, Product Manager of

sectors thus far, including hospitality,

Digital Imaging, agrees. “Our customers

business, retail and residential. Salmen came to Petters Group in

are getting all of the fun, user-friendly features Polaroid cameras have to offer, in a unique, smaller package.” Designed with the Target guest in mind, the exclusive red t730 is creating a lot of buzz. Watch for the t730 in national television and

March from Heitman, a real estate investment management firm, where he was Senior Vice President. While at Heitman, he was responsible for originating and managing debt and equity investments throughout the United States. Salmen holds a BS from Boston College and an MBA from the University of Chicago Graduate School of Business. He and his wife just welcomed a little

print advertising campaigns for Target starting this May.

girl, Maggie, into their family in January, and luckily, she is a good sleeper so the transition to fatherhood has been pretty good.

SUMMER 2007

UPFRONT

around the companies

PROGRESS

DID YOU KNOW? : :

New Minnetonka Offices Near Completion

December 22nd -Busy Day for Sun Country SUN COUNTRY AIRLINES had its highest volume of passengers in its 24 year history on December 22nd, during one of the busiest travel

weekends of the year.

fter nearly a year of planning, construction on the Minnetonka, MN offices started in early February. The south building of the complex is being gutted and remodeled with an early June target move-in date. The third floor will be the new home for Petters Group, the second floor for Polaroid, the first floor for Petters Consumer Brands, the cafeteria and the new main entrance level. The lower level will house the shipping dock, storage, exercise and massage rooms. “The contractor has had 50 to 75 people here everyday working on this and they are right on track for our move-in date,” John Jordan, VP of Facilities said. There will still be work to complete on the entrance after the June move-in but the old north building, currently occupied by all these companies, needs to be torn down for that to be completed. Estimated final completion date is October.

The majority of these passengers traveled through the Humphrey Terminal at the Minneapolis/St. Paul International Airport. This airport, recognized for its ease and convenience, serves as Sun Country’s hub. “We believe that low cost doesn’t have to mean low service, and the consumer response has resulted in this important milestone,” Wendy Blackshaw, VP Marketing of Sun Country said. “I’d like to thank not only our passengers, but the hard-

(Photos top to bottom) 1. A front view of the new Minnetonka office building. 2. Just 30 days after demolition started, walls for the new offices were starting to go up. 3. The open atrium on 2nd and 3rd floors was filled in to make additional office space.

working employees at Sun Country that have made this possible.”

POLAROID SPONSORS SMOKIN’ ACES PARTY IN MIAMI

CELEBRITIES LINED UP TO GET THEIR GROOVE ON

Also showing their dance moves and posing for instant photos

at Polaroid’s Smokin’ Aces Party in honor of Super Bowl XLI

were Kid Rock, Kayne West, AJ Discalla, Nick Lachey, Ryan

on February 2. A-list stars like Maria Menounos, Jeremy Piven,

Cabrerra, Matt Leinart, tennis ace Andy Roddick, and many

Terrell Owens of the Dallas Cowboys, and tennis star Serena

more. Press mentions included positive party reviews by E!

Williams packed the trendy Mokai nightclub on Miami Beach.

Online and the New York Daily News.

:: P E T T E R S GROUP

ON THE ROAD AGAIN

PCB Takes Appliances to PrimeTime and Housewares Shows

n February and March, Petters Consumer Brands (PCB) successfully introduced the Sunbeam™ line of major appliances to two major appliance trade shows. February brought the PCB team to The Dolphin at the Disney Resort in Orlando for the PrimeTime show, where they displayed an entire Sunbeam stainless steel kitchen. Complete with a refrigerator, range, over-therange microwave, and dishwasher. While major appliances were the focus, PCB also took this opportunity to introduce the Sunbeam compact appliance line: countertop microwaves, wine cellars, beer dispensers, and compact refrigerators, which caused quite a

buzz. RevolutionAir™, PCB’s first air purification product, also created interest in Orlando. In March, the PCB team took a road trip to Chicago for the International Home and Housewares Show. Jarden Consumer Solutions, from which PCB licenses the Sunbeam and Oster™ brands, had one of the largest booths at the show, displaying a wide variety of each of their brands. In the licensee section of Jarden’s booth, PCB displayed a Sunbeam stainless steel kitchen and a sampling of the compact appliance lines with both the Sunbeam and Oster brand of countertop microwaves and wine cellars. In meetings with factories and customers, PCB made new partnerships to enhance and expand the appliance business. With a solid line of major appliances and the new business generating with the compact appliance line, the Orlando and Chicago trade shows are just a few of the many the PCB team will attend and continue to get appliances, both major and compact, into the market. For more information, visit sunbeam majorappliances.com.

YESVIDEO EXPANDS OPTIONS AND FEATURES FOR YESDVD TRANSFER SERVICE

CUSTOMERS WHO ENTRUST THEIR MEMORIES to YesVideo for conversion to DVD can now personalize their viewing experience and share these precious memories with two new products from YesVideo. The YesDVD service converts video tapes, film, slides and prints to DVD for easier and more enjoyable viewing. Previously, all orders displayed only the standard YesDVD chapter menus and included the default music selections (classical, rock and jazz) for their music video highlights. Customers can now order that standard set or further personalize their DVD keepsakes with one of the new themes that fits their content: baby, children, celebration, tropical paradise, wedding and inspiration. DVD themes include the set of DVD chapter menus and music that fits the theme. In order to extend the customers’ enjoyment of their memories,

WELCOME TO THE FAMILY : :

Juice Media Joins Petters Group WELCOME TO JUICE MEDIA, the latest arrival to the Petters Group portfolio of companies. Juice Media is a media and software company that has created an effective way of connecting customers to sales and sales to marketing. The data engine they have developed, called Essence, builds customer profiles by combing data from multiple sources into one central application that segments and propels automated and individualized marketing. “Through our experiences with many companies, we found information was not being utilized to its fullest extent because the tools to extract it in an easy-to-use manner were not available,” said Rick Enrico, CEO of Juice Media. “We built a tool which works with key marketing and sales tools to provide a one stop shop for information.” Petters Media and Marketing Group, who helped to bring Juice Media into the Petters Group portfolio of companies, works with them to align with portfolio companies. YFly and SunCountry Airlines have launched programs with Juice Media and are seeing great results. “Our ability to segment our database and do more targeted marketing will be of great value to us,” Daniel Perkins, CMO of YFly.com said. Juice Media is looking to continue to refine Essence and be able to do a full market rollout by the end of the year. For more information, visit juicemedia.com.

YesVideo has also introduced the Video Flip Book as an add-on option to the YesDVD transfer service. For an extra charge customers can add a Video Flip Book to their home movie-to-DVD orders. During the home movie transfer to DVD, YesVideo patented technology scans the video footage and automatically extracts 80 of the clearest still frames. These captured images are arranged onto mini photo album pages, 4 images to each 4x6 photo print, and then bound into a mini album. Video Flip Books are currently available at Ritz and Wolf Camera stores offering instore YesDVD transfer services. Soon, these Video Flip Books will also be distributed by Kodak (Qualex Division) to all their photo retail dealers. SpringWorks, a division of Petters Group Worldwide, is an investor in YesVideo which develops and utilizes best in class video engineering and state of the art software technology to enable top-quality, on demand DVD video publishing from photos, slides, film reels and video tape. For more information, visit yesvideo.com.

SUMMER 2007

GALLERY

john t. petters foundation

FOUNDATION HISTORY AND MISSION THE JOHN T. PETTERS FOUNDATION honors the short and remarkable life of John Petters. John was a gregarious, 21year-old student University of Miami – Ohio banquet picture, Left to Right: Students Victoria Sherb, Brian Vannest, Justin Geyser, Miami Dean Roger Jenkins, Mollie O’Brien John T. Petters Foundation.

who was one of the most vibrant individuals you’d ever want to meet. As a student at Miami University in Oxford, OH he tragically lost his life while on spring break in

Global Exploration

Florence, Italy in March 2004. John had a desire to help deserving

2007 Scholarships Announced

n February, fifteen students were awarded John T. Petters Foundation scholarships to study abroad this summer or in the fall semester. This number more than doubles the amount of scholarships given out last year. Along with last year’s partner schools of Miami University, College of Saint Benedict and Saint John’s University, two scholarships were given out at Rollins College in Winter Park, FL and one to a local Wallin scholar. In addition to that, any fulltime student attending a four year college or university in the state of Minnesota had the opportunity to apply this year for one of the “open” scholarships. This let the Foundation have a further reach to students with financial need that may not be attending a partner school. At an awards ceremony at Miami University Farmer School of Business on March 5th, the scholarship recipients were honored by Dean Roger Jenkins and had the opportunity to meet Tom Petters and discuss their upcoming travels. Scholarship recipients at the College of Saint Benedict and Saint John’s University were honored at a reception on May 7th in Saint Joseph, MN. Last year’s recipients were invited to share how their time abroad affected them. John T. Petters Foundation scholars are now on the campuses of Miami University, College of

:: P E T T E R S GROUP

students study abroad and his family and friends made sure this would not end

Saint Benedict and Saint John’s University, Rollins College, University of St. Thomas, University of Minnesota-Duluth, and St. Cloud State. They will be studying business in China, Taiwan, Spain, France, England, Austria, and Bulgaria. Their progress will be tracked and shared with the Foundation upon their return. Application Process: Each student awarded a scholarship had to fill out an application that included submitting an essay and official transcripts. They were then notified that they were finalists, at which point they were interviewed before finally being selected. PG

HEADING TO BEIJING : :

with his passing. Scholarships are awarded on a need-basis to students who display John’s characters of leadership, motivation, and the overall passion to study international business. The Foundation awards scholarships on a semi-annual basis through partner universities and educational non-profit organizations.

2007 LEGACY GALA PLANNING

PLANS ARE UNDERWAY for the 2007 John T. Petters Foundation Legacy Gala. Last year guests stepped into the glitz of Las Vegas. This year they will walk through the doors of the Forbidden City into Beijing, China. Without the 12 hour plane flight and time zone adjustment, guests will spend “A Night in Beijing”, complete with Chinese acrobatics, traditional appetizers, and an Asian marketplace to bid on silent auction goods.

Legendary comedian Bill Cosby will headline the entertainment at the Gala on Saturday, August 11th at the Hilton Hotel in downtown Minneapolis, MN. Tickets are already being bought up and, if last year’s turn out is any indicator, it will be a sold out crowd again. For more information or to purchase tickets, visit johntpettersfoundation.org.

Thank You

DEAR JOHN T. PETTERS FOUNDATION, By receiving the scholarship, I have been given the chance to fulfill a lifelong dream of discovering a world I have only read about in books and discussed in class. This

DEAR JOHN T. PETTERS FOUNDATION, Recently, my daughter Victoria Sherb, a Miami University student, was informed that she is a recipient of the John T. Petters Foundation Scholarship. As a parent, I do not even know how to put in words my gratitude. Victoria’s dream since she was a child was to see the world and meet people of all different cultures and backgrounds. This summer Victoria will not only get to experience her dream, but will also, for the first time in her life, meet a family from Europe that she has never met. My husband and I worked very hard to provide the best of opportunities for our children. Due to health reasons, I could not continue to work, but my faith and dreams for my children never seized to exist. On behalf of our family, I would like to thank you whole-heartedly for your kindness and generosity. Your scholarship provided more than just an opportunity to travel. It has reunited family and fulfilled dreams of an exceptional young lady. Victoria is one of the happiest, most generous, kind and giving young people. She is every mother’s dream. With tears and sorrow I watched video of your beloved son, and I can assure you that it is that same joy for life and greatness that is inside Victoria’s heart. We will never forget your kindness, and we will keep and honor your legacy. I know that one day we will make a difference in someone else’s life. I am a great believer that blessings come not only from its acceptance, but also from passing it on. Sincerely, VALERIE SHERB

opportunity will be life changing. I am very excited to be part of a wonderful organization such as the John T. Petters Foundation. Warmest regards, C. PAIGE KAMKE, College of Saint Benedict

DEAR JOHN T. PETTERS FOUNDATION, I am determined to make the absolute most of my study abroad experience in China. From reading the Foundation’s website, I can see your son John really made the most out of every day and lived by impeccable values. I promise you that I will make every second of this trip meaningful and carry the lessons I learn from it to both my personal and professional life in a way that would make John proud. Sincerely, JUSTIN GEYSER, Miami University

SUMMER 2007

GALLERY

charitable giving gallery

Mollie O’Brien and Rebecca Holzem deliver gifts to the Crisis Nursery in Golden Valley, MN

MAKING SEASONS BRIGHT Gifts and Money Donated to Crisis Nursery In December, the Petters Group

Polaroid Breaks Records Supports The Breast Cancer Research Foundation

olaroid’s Pink Camera Campaign was a resounding success in raising awareness for the important work of The Breast Cancer Research Foundation (BCRF). Customers at Target, Circuit City and Wal-Mart loved the pink cameras and were motivated to show their support in record-breaking numbers by sporting the sleek and colorful Polaroid camera. The program kicked off in October of 2006 in recognition of Breast Cancer Awareness Month and extended through March of this year. Four models were available from a 5 megapixel fixed focus to a 7 megapixel with optical zoom. “We are very pleased to support the efforts of BCRF and look forward to repeating the program with even greater success beginning this fall,” Cheryl Mau, VP of Marketing for Polaroid said. The BCRF is the first and largest not-for-profit organization dedicated solely to funding innovative clinical and genetic research on the causes and treatment of breast cancer. Since 1991, cancer deaths have been falling by 1% each year, in a large part due to the research advances BCRF has made possible. PG

TURNING MINNETONKA YELLOW

to cancer patients in local hospitals and

Charitable Giving Group held a sale of

the other 60 adorning the desks and

daffodils to support the American Cancer

offices throughout Minnetonka.

Society Daffodil Days. The sale brought

bought with 20 of them to be delivered

:: P E T T E R S GROUP

staff raised almost $5400 and collected more than 300 toys, jackets, boots and clothing for the Greater Minneapolis Crisis Nursery, providing gifts to kids who may have otherwise not received anything. The Crisis Nursery’s mission is to provide a safe environment for children in crisis while providing parents a 24-hour crisis hotline and parent counseling. Thank you to those volunteers and contributors who helped us surpass our goal for this great cause. To learn more about the Crisis Nursery, visit crisisnursery.org

American Cancer Daffodil Sales

THE PETTERS GROUP WORLDWIDE

in $860 for ACS. Eighty bunches were

Worldwide and Polaroid Minnetonka

Nic Younghans of Polaroid bought daffodils to support ACS.

: : THANK YOU! Dear Petters Group, Thank you so much for your recent donation of 442 books for children and adults. Your generosity allows us to efficiently deliver supportive services to parents and children in Minneapolis. We will continue to work hard to merit the trust you have placed in our organization. Dear Tom, On behalf of Abbot John Klassen and the monastic community, thank you for your recent gift of $500,000 for Saint John’s Abbey Church Pavilion Project. Your gift will help the monastic community build toward the future, continuing to serve others through prayer and work.

Dear Friends of the Nursery, On behalf of the children whose safety is secured, and parents in crisis who find strength and support through our programs, we thank you for your $5,400 donation of cash, checks and gift cards. Your gift enables the Nursery to provide immediate relief to families every day through free programs including a 24-hour crisis hotline, residential child care, counseling, home visits, and referral resources. Your gift makes a difference in children’s lives now and in their future. Thank you again on behalf of every life your gift impacts in our community.

Dear Tom: We wish to thank you very much for agreeing to have Petters Group Worldwide serve as an Event Underwriter for The Retreat’s 2007 Golf Extravaganza. Your personal endorsement of the event and partnership through your company will augment the visibility of both the event and The Retreat. With your help, those individuals struggling with addiction and who lack the financial wherewithal to pay for their care will receive assistance through the scholarship fund. Thank you for contributing so generously to this year’s event.

Annual Holiday Visit to Minnesota Teen Challenge

[1] Tom Petters addressed the group while Larry Harmer of Polaroid, Pastor Rich Scherber and his wife, Lynette, were on stage listening. Many employees stood up and shared how Tom Petters’ devotion to charitable giving has made them really understand its importance to community. [2] Katie Northrup, Petters Group Receptionist, thanked one of the Minnesota Teen patients after the concert. [3] Pastor Rich and his wife talked to the group about what Teen Challenge is about. The two were brought to tears later in the program when thousands of dollars were raised from an impromptu fundraiser among the Petters Group employees.

MINNESOTA TEEN CHALLENGE : : The annual visit to the Minnesota Teen Challenge facility in Minneapolis, MN gave employees an opportunity to hear about the needs of the community and see how their donations are helping. The emotional two hour visit was filled with stories from patients about how low their lives had gotten before finding Teen Challenge, followed by an uplifting concert from their 400 voice choir. A donation of $25,000 was made by Tom Petters and another $25,000 raised by employees was given to Pastor Rich Scherber. For more information, visit mntc.org.

: : THANK YOU! Dear Mr. Petters, On behalf of the individuals served by Homeward Bound, we want to thank you and Petters Group Worldwide for the two night stay at Tam O’Shanter Lodge for our auction at our golf event. Your gift enables Homeward Bound to be the leading provider of life-enriching services for children and adults with disabilities. Your contribution will make Homeward Bound’s 12th Annual Golf Classic a success!

Greetings, On behalf of the TwinWest Chamber of Commerce and the TwinWest Foundation, we would like to express our sincere thanks for your auction donation to the TwinWest Chamber of Commerce 22nd Annual Gala. Proceeds from the Gala help fund the TwinWest Foundation Scholarship Program as well as support the Chamber’s mission. Your donation helps build a brighter future, not only for our area youth, but also for the business community.

SUMMER 2007

CONNECTING POINTS

operational excellence

Go for the

Green Light Mary Jeffries, Petters Group Worldwide President/COO

y now I’m hoping you’re all familiar with the four cornerstones that underpin our success and guide our growth: Strategy, Investment Process, Operational Excellence, and Relationship Management. Building on these cornerstones allows us to maintain our focus and balance our resources as we pursue some very ambitious growth goals. Being familiar with these cornerstones and knowing what they stand for is important. But it’s not enough. To bring them to life, we need

Investment Strategy

to have detailed plans behind each one along with budgets, metrics and a dashboard that will show us what kind of progress we’re making as we grow Petters Group Worldwide. To make that happen, we have created a unique process that we call “business building with a 4x4.” We believe that this process is unlike anything that is used in other businesses. It does not result in a massive business plan that is put into a threering binder and finds its way onto a shelf or into a drawer. Instead, the Petters Group 4x4 process is a simple, yet elegant approach. Each of the four cornerstones is supported by four critical initiatives that must be achieved if we are to make the cornerstone happen. The end result of the process is 16 clear initiatives – four for each cornerstone. Budgets and accountabilities are then assigned to each of the initiatives. As a result of this process, we can readily identify

who is accountable for making it happen and what resources we’re allocating to the process. After that, we assign each initiative a “stoplight” color. If we’re on track to hit the metric, we give it a green. If there are some hurdles we need to deal with, it gets a yellow. And if nothing is being done, it gets a red. The end goal is to turn all the initiatives to green. If that happens, we’re on our way to a successful plan outcome. It also allows us to focus more quickly on the problem areas – those in red – and get those turned around more quickly. In addition to the Petters Group strategic plan, we’ve already introduced the 4x4 process into YFly, BroadSign and YesVideo. We’ll soon be rolling it out into our other businesses. I would encourage all of you to become familiar with the process and to help turn all the companies of Petters Group into “green” companies. PG

Investment Evaluation Process

Marketing Strategy

Organization Strategy

Capital Strategy

STRATEGY

INVESTMENT PROCESS

Investment Management and Governance

Investment Performance

Collaboration And Leverage

Community Relations

Resource Network

Petters Group Worldwide develops, finances and invests in companies to strategically build them to realize their value and growth potential. Infrastructure Support

Learning/ Continuous Improvement

Financial and Management Controls

:: P E T T E R S GROUP

Accountability & Measurement

OPERATIONAL EXCELLENCE

RELATIONSHIP MANAGEMENT

Strategic Relationships

Attract and Retain the Best People

:: P E T T E R S GROUP

: : f i r s :t : tni amm eT ALKAESSTU N E AME

M A K I N G MAA K D II N F FG E A R EDNICF EF E R E N C E

Shopping for Deals The Man Behind uBid’s Great Merchandise WRITTEN BY ANDREA MILLER

veryone wants a good deal on merchandise, and it is Tim Takesue, EVP of Merchandising of uBid.com Holdings and President of the uBid.com platform, who is leading the charge at uBid.com to find those products. As one of the original members and officers of the company, Takesue has seen his share of the company’s ups and downs as they celebrate their 10th anniversary this year. “Early in the .com era we were on top of the world but we learned humility fast when everything came down,” Takesue said. The roller coaster has taken them through the public/private stages three times. In 1997, they were founded as a division of PC Mall with a limited amount of capital, with Takesue helping launch the very first auctions on the uBid.com platform. In late 1998, with Takesue as part of a very seasoned management team, they took uBid.com public, and in a very short period of time, uBid’s valuation reached nearly 2 billion dollars and was the best performing IPO for Merrill Lynch that year. In early 2000, CMGI, a multi-billion dollar internet conglomerate at the time, purchased uBid for approximately $407 million dollars. After the .com crash, Petters Group saw an opportunity to give uBid some stability and purchased them in early 2003, making them a private company again. Following 2 years of rebuilding, uBid went public again in December 2005. Takesue started his career with Sears Roebuck over 22 years ago selling consumer electronics on the retail floor while still in high school. That beginning led to a ten year career with a couple different retailers and direct marketing companies, where he held positions from District Sales Manager to VP of Merchandising. During these earlier years, he was forging relationships with various manufacturers, retailers and other suppliers that he utilized for the early sales on the uBid.com platform. He is still utilizing some of them today as the company seeks out inventories from companies to auction and sell directly on the website. uBid.com, however, is somewhat selective on who sells on their website. Through uBid’s Certified Merchants Program, a seller must apply and go through a screening process before they are allowed to list merchandise for sale. On average, 50 companies apply every day and two-thirds of them do not get accepted. “We want people to know the merchandise they buy from us is real and we truly try to take every step possible to not allow fraud on our site,” Takesue said. This has allowed the company to move over 2 1/2 billion dollars of products through their site without the problems that other open marketplaces incur, such as stolen goods, counterfeit items and misrepresented products in general. Established areas for uBid.com are computers and electronics, but they are expanding the categories daily and offering sellers the chance to sell in over 200 different product categories. The intrigue of being able to possibly buy a computer for $1 helps drive the traffic to the website. Many auctions

start at $1 without a reserve price, which allows people to get in early and, once they are in, they keep on bidding. Other categories, such as jewelry, watches and collectibles, are seeing 100% plus growth rates with the addition of new Certified Merchants. Great relationships with vendors around the world and even with the Petters Group portfolio of companies have allowed them to provide a large selection of items at great prices for consumers and businesses. “uBid is a great way for us to move excess inventory quickly,” Steve Ratliff, VP of Sales for Polaroid said. Their connection to Petters Group doesn’t stop there however. uBid also runs auctions for charities, allowing them to extend their silent auctions beyond their one day events. Last year, the John T. Petters Foundation listed 50 items on the website for two weeks after their Gala in August and brought in an additional $14,000 from that auction. Takesue does not spend all of his time searching out products for uBid. Takesue loves to spend time with his wife of nearly nine years and his two daughters, ages 6 and 4. In the summers, they try and spend as much time as possible on the lake. They have resided in the Chicago area for almost 12 years. As the number two online auction platform in the US, uBid.com enjoys almost 6 million registered customers. And that is growing as marketing efforts are reaching more consumers daily. Targeted web advertising and, for the first time, offline advertising on DRTV are driving people to check out uBid.com. “Once we get people to the site and registered, they are hooked and will buy,” Takesue said. In the fourth quarter of 2006, uBid.com finished in the positive, a position they hadn’t been in for years. “We are in a good position in the marketplace and excited to see what the next 10 years will bring for uBid.com,” Takesue said. “What I really love most about uBid is the core team of 80 people. They make the difference, and some have been with uBid for years and truly believe in the company.” Takesue considers himself Chief Believer and Visionary for uBid.com and says it could not be done without the great team members. They also have great partners and shareholders, the largest being Petters Group. “It is well known throughout uBid that without the belief and support of Petters Group we may not have had such a wonderful chance to try and create the most potential value out of this platform that all of our shareholders, employees, merchants and customers deserve,” Takesue said. When asked, “What keeps you awake at night?” Takesue concluded “I do not want to let anyone down, not a single one of our over 5,000 Direct and Certified Merchant suppliers, our 80 employees, our patient shareholders, our 6,000,000 customers and, of course, my family.” For more information, visit ubid.com or in the stock market, uBid.com Holdings, Inc. (OTCBB: UBHI) PG

Chief Believer and Visionary for uBid.com

SUMMER 2007

:: P E T T E R S GROUP

: : f i r s :t: pnaatmr ie c iLaA SHTA M NM AME

E X E C U T IEVX EE CPUR TOI FVIEL EP R O F I L E

The People Person Building employee skill sets for global growth WRITTEN BY ANDREA MILLER PHOTO BY TODD BUCHANAN

hen you look at Patricia Hamm’s title, EVP Human Capital and Learning Group, you may think you know about those departments. However, in an entrepreneurial company such as Petters Group Worldwide, the scope of those two areas reaches far beyond the walls of the office. In fact, they reach all the way to China. “When Tom Petters first brought up the idea of a learning center, I said “’Great’. When he said he wanted it in China, I said ‘Wow!’” Hamm commented. Setting up the Petters Global Learning Center Shanghai, China facility is one of the current focuses for Hamm. The goal for the facility is to partner with a top Chinese university to utilize their resources while creating a unique global learning program which incorporates the vision and curriculum from partner American schools to create best practices in international education for students and business professionals. Student study abroad programs through these universities would be the first phase brought into the Center, while building an accredited program for any university student is our long term goal. “Patty has built upon Petters Group’s connections with a number of universities to give this program a very solid base to start,” Jim Rustad, Learning Center Project Consultant said. The second phase would be to create programs based on field and case studies for US and Chinese businesses to educate employees for global success. Roll out for the Learning Center is slated for early 2008. “While we are excited for the Shanghai program, the Learning Centers we are developing for our own employees are having an immediate impact,” Hamm said. Penny Locey, Director of Learning and Organizational Development, works with Hamm and developed many management skill building classes and team events in 2006 for management teams. This second quarter, programs for all employees have started. “Patty is taking Tom Petters’ vision of to create “time-out” learning opportunities for individuals and organizations in support of our business strategy and core values, and is committed to bringing it to life through the Learning Center,” Locey said. One focus for 2007 has been to create a consistent job titling and compensation system for the Polaroid and Petters Group organizations, aligning them with a more consistent and timely performance management system. These types of tools can be introduced and tweaked across Petters Group companies to support best practices in human resource management. “We are moving very quickly but sometimes we have to take a step back, evaluate and take the time to change in order to better our teams in the long run,” Hamm said. Working to help teams get better and to utilize all the resources available to them is one area in which Hamm feels her HR team really

excels. “We are far more than an HR department that just processes administrative activity. HR is here to be consultants on a broad range of topics in order to help grow and build employee performance, as employees truly remain our most valuable resource in the Petters Group portfolio,” she said. With the variety and depth of expertise in the HR team, portfolio companies can tap into consultative practices for stronger results that build upon the core values of Petters Group. “Tom Petters has always encouraged the sense of balance and recognition for employees and our team reinforces that through a variety of events planned each year, such as Wellness Week, Employee Appreciation Week, Learning Lunches, and Bring Your Pet to Work Day. We need to have a little fun interspersed into our work day,” Hamm said. She is a firm believer that the need to laugh and enjoy your peers are essential to being a well rounded person. When Hamm is not in the office, and sometimes when she is there, you will find her Golden Doodle, AJ Woof, with her. She hasn’t figured out how to get AJ out on the golf course, ski slope or tennis court yet but says she enjoys watching. One of the areas Hamm takes great pride in and enjoys in her job is the ongoing relationship building between university partnerships and the Petters Group companies. This work began through the John T. Petters Summer Internship program, and has now grown to involve university fac-

“HR is here to be consultants to help grow and nurture our employees” —PATTY HAMM ulty and students working on key research projects, in house learning engagements, and the opportunity for Petters Group talent to come to the classroom for robust dialogue with students. She estimates there will be over 40 students working for several of the portfolio companies this summer. The high standards set for interns to even apply means those who are finally placed are some of the best from their schools. “The students coming into our program have lots of drive and great ideas so the companies benefit from these fresh perspectives on their projects,” Hamm said. Many of the connections made with these interns last beyond the summer. Several have been hired on as full time employees after graduation and others are leading projects on their campuses to continue summer work. “Our university partners have great resources we are just starting to tap into,” Tom Petters, Chairman and CEO of Petters Group said. “Patty is helping to connect our companies with those resources to help both sides gain experience and learn.” PG

SUMMER 2007

F E AT U R E

inside glance

Co-founders Danny Perkins and Drew Levin

Social Entertainment The Millennial’s Means of Connecting

Fly.com, a Petters Group Worldwide portfolio company, is expanding the online network experience and focusing on delivering the ultimate platform for social entertainment. The company’s social networking site, co-founded by Nick Lachey, Drew Levin and Danny Perkins, is more than just updating profiles and viewing friends’ pictures. It is about providing fun ways to interact with friends, including Smack Talk, unique video and music sharing, competitive games and much

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WRITTEN BY ANDREA MILLER

more. In addition, YFly members can connect directly with Certified Celebrity profiles and access exclusive celebrity content. For those who want to create their profile, the YFly Style Studio gives a variety of options to use for backgrounds and designs. It was created to be easy to use and does not require the use of outside sources to build a page, unlike many of the social networking sites out there. “We felt it was necessary to keep this simple and easy to use so even the basic user can customize their

“We are driving value to the users, unlike many of the other sites.” —DANNY PERKINS

profile and express themselves,” Danny Perkins, CMO of YFly said. One of the newest features to explore is Smack Talk. This is a new tool which allows users to upload a photo and create a character by adding funny preset heads and bodies. The user can then select sound bytes from a library of clips, create a text-to-speech message, or record their own voice by calling into an 800 number. Users are able to send the Smack Talk via email, via AIM, or post it to other sites. “We wanted to create a viral tool that is fun for members and encourages them to invite their friends,” Perkins said. Another feature catching on quickly is competitive games, which allows users to compete against their friends for top scores and the pride of being #1 in the internet’s most addicting games. “We wanted to make YFly.com a site people wanted to visit everyday,” Drew Levin, President of YFly said. “By signing partnerships with Atlantic Records and Jive Records, we are able to keep our audience informed about their favorite artists,” he added. Many of the lyrics from these artists are also available to use in the Smack Talk tool, giving users a way to connect even further

with their music. Several of the labels’ artists have also created their own pages on YFly to be part of the over 300 celebrities who are using YFly to communicate with their fans. YFly has certified these celebrities are truly the ones posting the information on their profiles and blogs. YFly also captures exclusive video shoots from some of the top celebrities out there, including Diddy, Pretty Ricky, Matt Leinart, Kristin Cavallari, and many more. The goal is to get interesting and dynamic content that a regular user can not usually see in traditional media, a more behind-the-scenes approach. “Celebrities are tired of having dozens of fake sites conveying false information about them,” Levin said. “We are helping them to have a site people can be confident the information they are receiving is true.” The partnership with Atlantic and Jive Records also gives users access to thousands of songs to download into their personal media player. YFly created the media player to be easy to use, like the Style Studio. Music and videos can easily be uploaded and shared with other users on the site. Users are also able to subscribe to their favorite celebrities and musicians on YFly.com, so as soon as

they upload a new video or add new music, it automatically adds to the user’s playlist. A user also has the ability to make it portable by moving the player to other social networks so the users who have multiple networks do not need to load their media player separately to all of them. In the world of social networks, YFly is relatively young, having just launched in January. However, they have heard very clearly what the market is asking for and are delivering it with all the bells and whistles. “We are driving value to the users, unlike many of the other sites who are driving the value to the advertisers,” Perkins said. “This age group is very savvy when it comes to advertising and marketing. They want to have a voice in creating products and do not like to be told what to buy,” he added. YFly launched an extensive online marketing campaign in April that included some of the busiest sites on the web, including perezhilton.com, ebaumsworld.com and YTMND.com. “Driving traffic to the site is key because we are sure once people experience YFly they will come back everyday,” Levin said. PG For more information, visit yfly.com.

SUMMER 2007

COVER STORY

Jay Salmen, Sun Country interim CEO; John Fredericksen, VP & General Counsel; Steve Spellman, CFO/COO

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Y R T N U O C N SU LINES

ONT DELM E O J BY

AN HAN BUC D D O YT TO B PHO

A Job n a h ore T ployees M s I It st Em o M For

AIR

andi Paulson remembers her early days at Sun Country Airlines. When she’d finish her stint as flight attendant, she’d clean the plane’s toilets and then help vacuum the carpets. After the plane was cleaned, she and the other crew members would head to the small non-descript building in Mendota Heights, MN where they would repackage food they bought at Sam’s Club for use on the next Sun Country flight. “We did everything,” recalls the energetic Paulson, who has been flying for 35 years. “We cleaned planes; we prepared the catering. We had to. We were the only ones here.” That “do-whatever-it-takes” attitude that helped get the newborn airline flying continues today and forms a keystone of the corporate culture at Sun Country. That’s kind of a buzzword, isn’t it? Corporate culture. But if you cut through the fancy management jargon, you get to the nut of the situation. A company’s success often depends upon its culture, from the attitude and the approach of the employees to the way they see and perform their job. At Sun Country, the corporate culture and traditions that people like Sandi Paulson pass on to new employees are two of the key elements of the company’s DNA. They describe the company and help differentiate this airline from many other airlines that don’t value or promote good passenger service. This tradition of service is what helps make Sun Country such an important piece of the puzzle at Petters Group Worldwide. And it’s why Tom Petters found the company such an attractive acquisition when he purchased it last year. Petters Group Worldwide and its partner, Whitebox Advisors, a Minneapolis investment fund, each own 50% of Sun Country after they acquired it in October 2006.

SUN COUNTRY FITS PETTERS GROUP PROGRAM

>>>

Why would Petters Group purchase the small Mendota Heights-based airline in an industry that’s been battered since 9/11 by slumping traffic and rising costs? “The people and service at Sun Country are tremendous,” Tom Petters, Chairman and CEO of Petters Group said. “They’re just beginning to be recognized as a gem in the airline industry. We see opportunities for growth here as outstanding.” Those opportunities are plentiful within the Petters Group collection of companies. For example, he says that close to a dozen of the companies owned by or doing business with Petters Group Worldwide could work well with Sun Country. “We can bring marketing dollars and additional ancillary services to the airline,” Petters said. “Probably half of our companies have a reason to connect the dots with Sun Country.” One big project in the planning stage is the development of destination resort properties that could benefit greatly from Sun Country which has a history of delivering passengers to southern vacation locations. “This airline will be able to bring lots and lots of traffic to support those properties,” Petters said, adding that it’s premature to provide details on those projects. “I think we can make this airline tremendously successful by continuing on the track it’s on.” That track includes profitable routes between the Twin Cities and New York, Washington, Orlando, Ft. Meyers, Cancun, Dallas/Ft. Worth, Phoenix, San Diego, Los Angeles, San Francisco and Seattle. Sun Country is a small player in the domestic airline industry, but last year the closely held company generated a profit on revenue of about $235 million. It operates 13 planes in the busy winter season and employs about 1,000 people. The passenger load is split about 80/20 between leisure and business travelers. Travel + Leisure and Conde Nast Traveler both recognized Sun Country as one of the Top Domestic Airlines in 2006.

SUMMER 2007

COVER STORY

Each of these three, flight attendant Paulson, Operations Director Fuller, and pilot Gabriel, has a unique perspective on the birth and growth of Sun Country Airlines. Here are their stories. The skies haven’t always been sunny for Sun Country. It was born from Dallas-based Braniff Airlines when that operation went into bankruptcy in 1982. Following the bankruptcy, Braniff’s small group of employees stationed in Minneapolis hooked up with MLT Vacations, a Minneapolis charter operation, and launched Sun Country the next year to fly travelers to resort locations. The airline was profitable six months later. The current management team views their plan for future of Sun Country as one which will take the airline to the next level. “A new marketing campaign, increased flight segments, an easy to use frequent flier program and three new planes will add to this already vibrant airline,” Jay Salmen, interim CEO said. The focus of Sun Country for so many years was just maintaining their position. As the new owners, Petters Group and Whitebox, are providing capital to make that next level move possible. Steve Spellman, who joined Sun Country in April as their new CFO/COO said, “Keeping costs down and using the company’s strong cadre of passionate employees to deliver outstanding passenger service are still core for us.” John Fredericksen, VP & General Counsel for Sun Country, has been with the company for 4 years. Having been through the rough times he is enjoying this resurgence for the airline. “Thanks to Sun Country’s employee’s innovative thinking and great attitudes they have given the airline the opportunity to be where it is today,” Fredericksen said.

SUN COUNTRY: THREE PERSPECTIVES

>>>

Sandi Paulson is one of the most senior flight attendants at Sun Country; she’s been flying for 35 years and helped build the company from the old Braniff Airlines operation in 1982. Jerry Fuller is Senior Director Operations at Sun Country, a position he’s held since 2002, although he worked for the original Sun Country. And Jim Gabriel is a senior pilot who began flying with Sun Country in 1983 after he left the Air Force.

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SANDI PAULSON

>>>

FLIGHT ATTENDANT “I joined in January 1983, it was the first group, and there were 16 flight attendants and 11 pilots. It was pretty cool. It was called Sun Country, but I called it the Minnesota Miracle, because that’s what it really was.” Paulson got her first flight attendant spot when she was 19, and she’s been flying ever since. “Once it gets in your blood, if you really live it, there’s nothing else you can do,” she says. After Braniff failed, the 100 or so employees based in Minneapolis looked at their options and decided to build an airline. “We began thinking about making our own airline, because that’s what we wanted to do. We didn’t want to move on.” Some of the group met with executives at MLT and discussed the project. MLT had passengers and ticketing and marketing and administration, but lacked experienced flight people. Hmmmm. Could this be a match? Yes. The group came up with a 727, dubbed it Alpha Fox, and began flying on a limited basis. There were only 16 flight attendants so they could only fly four crews. It wasn’t bad during the summer, but during the winter they flew as much as 120 hours per month. And when they weren’t flying, they were cleaning and packaging food. “We didn’t have anyone to replace us if we were sick,” Paulson recalled. “We tried really hard not to be sick, because we knew that one of our friends would have to fly, and they already were flying a lot.” Paulson says she even scheduled her second pregnancy for the slow season. What was the point with long hours and short pay? “It was a special time,” Paulson said. “We had this attitude: We’re a team and we’re making this company work. And that attitude has prevailed to this day. We have a unique attitude and family style; we’re in this to make it work.”

untry o C Sun t e a e c vi g to b r n e i s n d begin le an t p s o u j e try.” s p e u r ’ e d y h n e “T line i s. Th r u i a o d e in th emen r t m e e r g a RS as a d ETTE e P z M i n —TO recog

Today, Paulson continues to fly her schedules and to pass on the Sun Country tradition to new people as they join the company. “We have this heritage, this attitude, and this culture that we can pass on,” she says. “I tell the story to the new people about how Sun Country started. I enjoy doing it, and it’s an important part of Sun Country. I pass on the heritage because I’ve been doing it so long and because I’m one of the Braniff girls.”

JERRY FULLER

>>>

DIRECTOR OF GROUND OPERATIONS Jerry Fuller, 60, has worked for five airline operations over the last 40 years, and he is still loving it. “This business has a way of energizing a person,” he says simply. As Senior Director Operations, Fuller oversees the 150 or so contractors that Sun Country uses to provide services ranging from baggage handling and passenger services to fueling and de-icing at the more than two dozen airports in which it operates. Even though Sun Country out-sources most of its services, Fuller still has about 400 people reporting to him. Fuller had worked for the original Sun Country and he had a good job when the new Sun Country was launched, but he returned in 2002. “I did it against my wife’s better judgment,” he says today. But he decided to give it a go after hearing the business plan for the company. “This is a very tough business,” he says, “and you have to have a plan. When the new company came to me, the first thing I asked about was their plan. I felt it had a chance. It would take a lot of hard work. A lot of people have created something unique here.” Then, Fuller says something really interesting. “The small group of people involved in the new company had enough experience to realize that the actual business of the airline, as far as the customer goes, is pretty simple. But if you put in a lot of complexities, your costs go up and your customers’ expectations go up. Those are probably two bad curves. What we try to do is keep things simple, and understand what the customer wants and every day try to do the job better than the other companies.” Fuller makes a very interesting point about the Sun Country employees with whom he works: It’s a diverse group of just-in-time workers. “We have to be diverse in our hiring,” Fuller said, “because we have a diverse customer base. Your staff should mirror your customers.” Fuller’s test, he says, is to look at his passengers and then turn around and look at his staff. “It should be like a mirror,” he says. “The closer you are to your customers, the better your relationships with them will be.” Sun Country operates relatively few flights to a small number of airports. This means

We Get Letters… Sun Country connects with its passengers

Stories on TV and in publications about airline passenger dissatisfaction aren’t unusual. But letters from passengers applauding airline service and personnel…. Well, that’s another story altogether. Here are a sample of the kinds of unsolicited letters that Sun Country regularly receives from its passengers. They have been edited for brevity and clarity.

This business traveler was late for a Friday

afternoon flight because of problems with taxi service. She arrived about 3:30 for a 4:10 flight. “A nice lady at the Sun Country counter checked me in quickly and (walked) my bag to the scanner so I could get through security. It was such a kind thing for her to do and it probably made all the difference.”

This woman flew with her four young children. “The flight attendants were amazingly helpful. I was concerned about how I would manage my large load upon landing. When we arrived in Minneapolis, Sun Country staff were waiting to assist me. I hadn’t even asked for help. I was very impressed. I had spoken with other airlines who claimed assistance would not be available to me.”

Sun Country even provides car repair

assistance. “We experienced car problems in front of the terminal. We tried everything we could to fix the car and we were going to call a tow truck when a gentleman from your airline asked if he could help. He and another man from Sun Country helped us get the car running.”

This group of passengers was re-routed to Sun Country after another airline cancelled their flight. Unfortunately, their baggage didn’t make it to Minneapolis from Salt Lake City and their baggage claim checks were lost in the shuffle. “The airline that cancelled the flight took no responsibility for the missing baggage, and their personnel were not helpful. Therefore, we were even more appreciative of the high level of customer service from the Sun Country personnel. They were friendly, cooperative, committed to solving our problems and emphatic (sic) to our situation. I understand you have received high marks nationally for service, and I can see why.”

Continued on page 36 SUMMER 2007

COVER STORY

“I was literally blown away by your service and I am still pinching myself as to whether it actually happened or not.” —Business Traveler

쑸 쑸 Continued from page 35

This woman’s elderly mother flew Sun

Country. “(My mother) is old and frail, so I needed a wheelchair and gate pass to help her get to the gate. (A Sun Country employee) arrived quickly with a wheelchair, then took care of checking Mom in, assigned her a bulkhead seat, checked her bag, and wrote up a pass for me, all efficiently and cheerfully. The whole process went smoothly and quickly.”

Sun Country employees assisted these two

elderly Minnesotans who were stranded in Cancun after missing their charter flight on an MLT package. The staff of the airline (it wasn’t Sun Country) offered no help. The senior couple was looking for help, when a Sun Country employee met them. He got them on the first flight the next day and took care of them until they departed.

This letter is from a disabled flight attendant

who flew for 36 years. “It was a new experience to travel being handicapped. Your employees made my trip with my daughter and sister a pleasure, from baggage check to landing. My scooter was brought to the airplane door for me and a wheelchair for my sister was waiting. If I travel again, it will be on Sun Country. You took away the apprehension of traveling handicapped.”

This traveler flies more than 50,000 miles

annually. “I dropped off my 94-year-old uncle for his return trip to Ft. Meyers. I was literally blown away by your service and I am still pinching myself as to whether it actually happened or not. As a frequent business traveler (on other airlines), I have become accustomed to being treated poorly, rudely and as if it’s a burden for the airline to have my business. (One of your employees) stayed with us while we checked my uncle in and then offered to grab a wheelchair and take us up through security. She took us through security and then took us to the gate and made sure we were all set.”

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that at any given moment, traffic can be very heavy at the Humphrey Terminal or very light. It takes about 1.5 hours to check in 3,000 passengers and 4,000 pieces of baggage each morning as all of the company’s aircraft fly out of Minneapolis. The part-time morning crew, dubbed the Breakfast Club, then leaves and things are pretty quiet until the afternoon crew arrives to service the planes when they return. The afternoon gang, an entirely different group, calls themselves the Sundowners. This approach differs from most other airlines where senior employees bid on the most popular shifts. This approach can get hectic when schedules change. “We believe there are general lifestyles that fit our operation,” Fuller said. “So, we recruit and train and put people to work during periods of time that fit their lifestyle and our operations. We find that we actually get a higher level of employee; they’re just the best in the business.”

JIM GABRIEL

>>>

PILOT Jim Gabriel joined Sun Country in December 1983 as part of the second group of pilots to join the airline. What he found was an unusual corporate culture. “These guys were really close to each other,” he says. “Everyone knew everyone else, and they were really buddy-buddy, and they brought that culture with them. There wasn’t the confrontational attitude between groups that exists at many organizations.” Gabriel, who has accounting and management degrees, played several roles at the new company, in addition to flying. He spent the first summer tracking fuel purchases. “We did everything back then. The only thing we didn’t do was flight planning,” he says. “The employees here feel like they can make a difference.” Gabriel reels off story after story for a visitor about how employees take care of passengers. One time, a bowling team was flying Sun Country from Las Vegas to Eau Claire, WI., and then on to Minneapolis. When the crew began unloading baggage in Eau Claire, it was discovered that all bags were tagged for Minneapolis; there was no way to tell which bags went to which city. So, the pilot and co-pilot unloaded every bag, which included two bowling balls for each team member. The Eau Claire passengers picked out their baggage, the rest was reloaded and the plane took off for Minneapolis. Simple enough; just solve the problem. Another time, Gabriel was flying to Ft. Meyers but was forced to land at a nearby small general aviation field when the main airport was fogged in. There were no ground handlers available, so Gabriel and other crewmembers unloaded the plane, lugged the baggage to curbside and helped passengers load their bags on a bus for the 10-mile ride to Ft. Meyers. Sandi Paulson’s Minnesota Miracle is thriving today and fits in nicely as part of Tom Petters’ global corporate puzzle. But it’s a special part of the puzzle, she says. “We started out and we were just folks, just regular people. And we just made it work. If it didn’t work one way, we made it work another way. There’s just no place like Sun Country.” For more information, visit suncountry.com. PG Joe Delmont is an award-winning Twin Cities business writer and editor.

WHERE IN THE WORLD IS TOM?

febr uary 28th-march 10th

As a man who is constantly on the move, Tom Petters is often asked, “Where in the world are you?” This is a little snapshot of one of Tom’s weeks.

WEDNESDAY, FEBRUARY 28TH – FRIDAY, MARCH 2ND

At the JP Morgan Leadership Conference in Deer Valley, UT, which gave Tom an opportunity to network with over 150 CEO’s from companies around the country. The hot topics of Millennial and Investing in Asia were the foundation for many of the small group discussions and presentations.

SATURDAY, MARCH 3RD – SUNDAY, MARCH 4TH From the snowy mountains of Utah, Tom traveled back across the country to the sunny beaches of Miami, FL for meetings with investors. A flight Sunday afternoon got him into West Palm Beach, FL to spend time with his parents who were visiting Florida from Minnesota.

MONDAY, MARCH 5TH – TUESDAY, MARCH 6TH A flight from West Palm Beach to Oxford, OH had Tom calling the Minnesota office for a winter coat as he was going above the Mason Dixon line for a week and had forgotten to grab one since it was 80 degrees when he left Florida. Monday evening, he attended the Miami University Scholarship Awards Banquet and met the 2007 John T. Petters Scholarship recipients. Tuesday morning, he attended the Board of Visitors meeting for Miami University before catching a flight to Chicago, IL. Meetings Tuesday

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night went late as it was the first opportunity for Mary Jeffries, President/COO Petters Group and David Baer, Chief Legal Officer Petters Group to sit down with Tom in person in over a month.

WEDNESDAY, MARCH 7TH The uBid board meeting was held in Chicago. Mary Jeffries and David Baer were named as Directors for the board and this was the first meeting Steve Sjoblad, uBid’s new Chairman, presided over. A late afternoon flight brought Tom and Mary back to Minnesota and our balmy 40 degree temperatures.

THURSDAY, MARCH 8TH – SATURDAY, MARCH 10TH Tom had one of those mornings where you wake up and say, “Where am I?” as he was about to go out onto the deck to read the morning paper and saw a foot of snow instead of a sandy beach. Meetings in the Minnetonka office kept Tom busy, but he took time on Friday afternoon to pull together an employee meeting to “touch base,” as he said he felt a little disconnected since he hadn’t been in Minnesota for a while. He gave updates on the projects he was currently focusing on and let everyone know he truly appreciated all the hard work and dedication they put into these companies every day. PG

THE LEARNING CENTER

rollins program

Dr. Ilan Alon, Jennifer Petters, Tom Petters and President Lewis Duncan at Rollins College

A Rich Academic Partnership: Petters Group Worldwide & Rollins College

ith the dawn of the new millennium and accelerated globalization, the world is shrinking. Rapid advancements in technology have led the way to a world of enhanced connectivity between people living in different parts of the world. Rollins College has entered this new age with the task of preparing students to meet the challenges of globalization. Rollins President Lewis Duncan agrees that today’s world is changing and, with it the type of education needed to ensure that students are well prepared to meet the challenges of the new millennium. The entrepreneurial synergy between Tom Petters, Chairman and CEO of Petters Group Worldwide and President Duncan has spawned a relationship between Petters Group and Rollins College that will lead the college and its students

:: P E T T E R S GROUP

WRITTEN BY CARTER TAYLOR

into the 21st century. The opportunities for corporate and university partnership are vast. Jennifer J. Petters unknowingly led the way to the future of this partnership between Petters Group and Rollins College when she decided to attend this liberal arts school in the fall of 2002. Her father, upon meeting President Duncan, began discussing ways Rollins could prepare its students for the global 21st century. To be a truly globalized campus, not only must the students have international experiences, but so should the faculty and staff coming into contact with the students. President Duncan had already begun to formulate his plan and, with the help of a $12 million dollar donation from Tom Petters, Rollins has been able to fast forward this vision with two endowed Chairs, facility upgrades to bring tech-

nology into the classrooms, and funds for international travel initiatives. Along with this gift to transform globalization at Rollins, Petters Group also offers a challenging work/study summer internship program that gives students a chance to immerse themselves in real life businesses. The internship program at Petters Group has grown to employ over 40 interns per summer and will be expanding into a year round program. Petters Group has had a number of Rollins interns in the past and plans to host 3 to 4 students in summer 2007. Patty Hamm, EVP of Human Capital and Learning at Petters Group said, “Students bring our business fresh perspectives, skilled support on critical work projects, and always leave us with unique learning perspectives into our operations.”

Petters Group has also embarked on Tom Petters’ vision to build a learning facility in Shanghai, China. This learning center will focus on US and international students, as well as business professionals, providing the unique opportunity to study in China. The Learning Center will emphasize the Petters Group entrepreneurial spirit. Along with its various university partners, a curriculum focused on the needs for global understanding and learning is being developed. Rollins is hoping their technology center will be a direct link for students and professors between the Rollins Florida campus and locations like the Petters Global Learning Center in Shanghai, China. Professors will be providing course offerings through technology and helping students fulfill course requirements that are only taught on their home campus. Dr. Ilan Alon, the Jennifer J. Petters Chair of International Business and the Executive Director of the Rollins China Center, and Lisa Donatelli from International Study Abroad Programs are two key advisors to the Petters Group organization in bringing this dream alive. The Petters Global Learning Center is anticipated to open to college students in 2008. The opportunity for learning doesn’t stop at the college level. Recently, the Petters Group Worldwide Forum, held in Orlando, invited Rollins faculty to share their expertise with Petters Group executives. With the theme of “Connecting the Dots,” the commitment and rewards to university/company partnerships was loud and clear! Provost Roger Casey presented “Minding the Millennials”, Allen Kupetz presented “The Future of Wireless”, and James Johnson presented “Dollar Valuation and Networked Organizations.” These topics unveiled numerous opportunities to improve and build upon existing program partnerships across the Petters Group portfolio of compa-

nies. Provost Roger Casey stated, “The Petters Group relationship presents Rollins College with a lot to learn from as well. Tom Petters has an amazing ability to empower young people by allowing them to share business ideas.” Looking to the future, Tom Petters and President Duncan have discussed the idea of “Polarizing” Rollins campus, by adding Polaroid flat screens all over college grounds. The students will be given the project of choosing the content to show, from what’s happening on campus (Rtv, sporting events, and/or MovieFest creations, etc.) to what’s happening in the world (C-SPAN in the Political Science building and/or Bloomberg in the business building, etc.). President Duncan said, “Build it and they will come. The best use of the screens will come from not me, but the students, and it will probably be in some killer way.” The idea is currently being looked into and, hopefully by fall 2007, students will return “with their socks knocked off to a newer and more high-tech campus,” as President Duncan put it. As the world becomes seemingly smaller and smaller, it is important to connect the right dots. Rollins College and Petters Group believe global education is the absolute key in preparing students for the new millennium and to a future of success. President Duncan said, “We do not teach the answer to every question, but we teach students the right questions to ask.” With the collaboration of Rollins College and Petters Group, Rollins students will be better prepared to ask the right questions in the global marketplace of today. Furthermore, the relationship is a wonderful opportunity for students and faculty of Rollins and executives of Petters Group to learn from each other’s expertise and knowledge through a long-term partnership. For more information, visit Rollins.edu. PG

CARTER TAYLOR, RELATIONSHIP MANAGER To further develop the relationship between Petters Group Worldwide and Rollins College, Carter Taylor III has been hired to act as liaison between the college and the Petters Group organization. A current graduate student at Crummer School of Business, Carter graduated from Rollins in 2006. He brings a strong understanding of activities at Rollins and an ability to link faculty on campus to foster academic and business exchanges. Carter will continue to strengthen the bond between Petters Group and Rollins by serving as the liaison between the two entities.

The Petters Gift and its Influence on Rollins’ Globalization Efforts : : ENDOWED CHAIR OF INTERNATIONAL BUSINESS – Dr. Ilan

a Petters Grant, this allows faculty/staff an international experience

Alon is the Jennifer J. Petters Chair of International Business. Dr.

once every three years and also provides a Rollins student the

Alon has started the college’s China Center and acts as a key advi-

chance to apply for a grant towards an international experience.

sor to Petters Group for their own interest in a Petters Global Learning Center based in Shanghai, China. Endowed distinguished chair for visiting staff – A temporary position which allows a distinguished scholar to teach at Rollins. Endowed international travel for student and faculty – Known as

Capital improvement – Funds to develop a high tech classroom, which can allow students to interact in real-time with other students around the world. Ideally, this will create a classroom in Winter Park, FL that can be instructed by a professor anywhere in the world, such as Shanghai, China.

SUMMER 2007

VALUES

execution

Clockwise from top left: Ian Saunders, Chick Dishong, Judy Marino and Terri Shine

Shawn Lambert, Materials Manager and Nick Devito, Senior Materials Manager

Focus on

INSTANT! WRITTEN BY ANNE SLEIN AND LYNNE LABANARA

hat does it take to achieve seventeen consecutive quarters of profitability? A seasoned team of professionals committed to business goals and objectives with the skills and passion to overcome any obstacles that might appear along the way. Congratulations to the Polaroid Instant Imaging team for delivering exceptional business results in 2006! Here is a snapshot of some key players responsible for this win. Chick Dishong, Senior Sales Manager, drove an initiative of branded promotions with a variety of customers to promote instant film sales. His creative approach to film sales contributed significantly to the revenue achievement of the

:: P E T T E R S GROUP

America’s sales organization. Some examples of these were: The Jekyll & Hyde promotion introducing Anheuser’s new product-program sales to date - 35,000 film packs (350,000 photos); NBA Washington Wizards promotional photos taken at the Verizon Center during Washington Wizards games - 50,000 film packs (500,000 photos); and an Old Navy in-store December 2006 promotion where customers got a free photo against a theme backdrop - 50,000 film packs (500,000 photos). Dishong is a 19 year Polaroid sales force veteran, covering the Event and Entertainment category nationally, reporting to David Hale, VP Americas Sales. Ian Saunders, UK Sales Manager, led exceptional achievement in the UK Doc Photo business in 2006 by successfully overcoming staffing challenges he faced coming into the year. He successfully built a strong team by recruiting

and re-deploying key talent throughout the organization. Despite a product shortage, he focused his attention on specific UK key accounts, which would help Polaroid achieve its goals. Examples of key initiatives are sales to Timpson’s, the UK’s biggest cutting and shoe repairer. The team sold 29 x 403 units and 7 DMPs to Timpson’s. Jessups, the UK’s largest photo retailer, who had bought 200 units late in 2005 and went on to purchase another 100+ units for their stores in 2006. Additionally, the team also initiated a successful “incognito” assessment of service, signage, staff support, price and knowledge of UK passport regulations and presented a report to Jessup’s senior management with recommendations for improvement. Saunders is a 19 year veteran of Polaroid, reporting to Steve Smith, VP Sales and Marketing. Shawn Lambert, Materials Manager, and Nick Devito, Senior Materials Manager, led the development of a materials planning process nicknamed “Matched Sets.” The process, enabling the production of an additional three million film packs to the Long Range Plan (LRP) at minimal incremental cost, which improves profitability of the Instant Film business. Given the variety of components that make up a film

Operations: (Left to Right) Edy Emile, Mike Gibbons, Bob Gregerson, Alvin Harris, Maureen Roche, Mike Amato, Dan Polito, Tad Mendes, Pat Draper, Bob Martel, Bill Osborne, Terry Downey, Bob Johnson, Joel Angelico (not in picture: John Eburn and Jerry Hughes)

Logistics Support: (Left to Right) Bob Gregerson, Bill Callahan, Colleen Cole, Earnestine Harris, Audrey Colson, Jim Shea, Sue Isgur, Elaine Savage, Jim Donovan, Marie Jerome, Joel Angelico

pack, this was no easy feat. Working with colleagues in the Components and Assembly Manufacturing plants, they found creative solutions for utilizing the materials in inventory. Their technical expertise allowed them to take

calculated risks to substitute materials and scale batch size in order to meet the need. Their hard work and diligence significantly contributed to the cost effectiveness of the operation and the additional gain in revenue. Lambert and Devito,

with 19 and 42 years of service, respectively, are both members of the Worldwide Manufacturing organization led by Kyle MacDonald, Senior VP. The Polaroid Americaâ&#x20AC;&#x2122;s Logistics Group, led by Joel Angelico, Senior Logistics Manager, embarked on a project to eliminate the long term lease at their warehouse located in their Norton, MA facility. They needed to find a new location within a 20 mile radius of Norton, stay within budgetary parameters, and have a seamless delivery to Polaroid customers. It was critical to remain within a 20 mile radius of Norton so existing employees with years of experience in the fields of transportation, packaging operations and warehousing could make the commute. A collective team from Polaroid Facilities, Security, IT and Operations personnel was established to accomplish this task. Through their hard work, determination, dedication and expertise the massive move from Norton to Readville was accomplished. Over 200 trailer loads of goods and support equipment moved from Norton to Readville, averaging eight loads per day over a twenty day period. The goal was to turn one facility off and start the other one operating immediately, making sure there was seamless delivery to customers during the time span. Their goal was accomplished. This group continues to satisfy our customersâ&#x20AC;&#x2122; daily requirements. Angelico, with 29 years service to Polaroid, reports to Pete Spinney, VP Logisitcs. The HR Service Center, led by Terri Shine, HR Manager, is the one-stop-shop for Polaroid employee services and information. As the Instant Film business continued to manage for profitability in 2006, the HR Service Center was instrumental in the support of the employees who were leaving the company. Shine and her team provided accurate and timely information to support exiting employees and enable them to make a smooth transition to the next chapter in their life. In addition to providing this service, Shine led the 2007 Open Enrollment process across Polaroid and other Petters Group portfolio companies. Shine and Judy Marino also provided services and support to the organizations who spun off in 2006, specifically the sale of the New Bedford manufacturing facility. Located in Waltham, MA Shine and Marino, with 19 and 5 years of service, respectively, are members of a larger HR Shared Services Organization, reporting to Mary Kelly, VP Compensation, Benefits and HRIS. PG

SUMMER 2007

VALUES

caring

Setting You as a Priority He’s Got Your Back

aring is one of the core values of Petters Group Worldwide. Most of the time, we think about caring for others and forget about ourselves. Dr. James Mellin, owner of Mellin Chiropractic Care of Edina, MN, is in the personal manipulation business. That’s a good thing because “spinal manipulation,” also known as “the chiropractic adjustment,” is the most common therapeutic procedure performed by chiropractors to help people feel better. Tom Petters, Chairman and CEO of Petters Group, remembers the first time he saw Dr. Mellin. “He was recovering from a serious back injury himself while working with patients who were suffering from their own back problems. That impressed me,” Petters said.

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Every Thursday at the Petters Group headquarters, Dr. Mellin gives on-site treatments. They run the gamut, from correcting bad postures resulting from hours hunched over a computer to those who suffer from “BlackBerry Thumb”, a repetitive stress injury. Factor in sports-related injuries and discomforts resulting from poor health habits and Mellin’s days at Petters Group headquarters, as well as his wellness center in Edina, are a cornucopia of calamities. But Dr. Mellin’s mission is more than just relieving discomfort and helping the body heal itself. “Educating patients about the physics of how their bodies work is important,” Mellin states. For starters, Mellin reminds patients that although this type of holistic healing is new to

many people, spinal manipulation has been documented as far back as 5000 BC in Egypt and China. The modern father of chiropractic is Daniel David Palmer, who, in 1895, asserted that 95% of all health problems could be prevented or treated using adjustments of the spine and 5% by adjustment of other joints. What is commonly called a “pinched nerve” has been referred to as “vertebral subluxation” since the closing years of the Victorian Era. Doctors of chiropractics offer a variety of conservative care. Some specialize in treating specific musculoskeletal problems or sports injuries, combining chiropractic medicine with manipulation, massage, physiotherapy, nutrition, and exercises to increase spinal core strength in order to improve overall health. Other chiropractors may employ additional complementary and alternative techniques as a part of a holistic treatment approach. Mellin’s dexterity extends to both types of practice depending on a person’s needs. It is important to listen to your aches and pains because quite often that is a subtle message for what could turn into a larger problem. Medications do not always have to be the answer to heal what ails you. A chiropractic adjustment and massage can often solve a problem more efficiently and provide a long term solution for our ailments. PG Email questions you would like addressed in future articles to dr.mellin@mellinchirocare.com.

FEELING A LITTLE STIFF AT WORK?

Try these 7 suggestions to prevent common back problems : :

1 2

Do push-ups against your desk.

When sitting in a plane, car or large office chair, rest your head back against the head rest. A low back and neck pillow are also helpful to support the normal curves avoiding too much flexion strain.

Go to a nearby stairwell and walk up them to stretch out those calf muscles and hamstrings.

back to improve your overall posture and prevent repetitive strain while sitting.

Sit forward on your chair and tuck one or both of your feet under your chair so that your ankle, hip and ear line up.

6 7

Use a lumbar cushion or small pillow to correct your lower back’s curvature. Roll your shoulders back to reset yourself into good posture.

Hold your head up and hold your shoulders

SUMMER 2007

CORNERSTONES

investment process

PETTERS GROUP WORLDWIDE CORNERSTONES

STRATEGY

INVESTMENT PROCESS We follow discplined investment processes in making and managing investments

We use a focused business strategy making leveraged acquisitions in companies that generate superior investment returns

OPERATIONAL EXCELLENCE

RELATIONSHIP MANAGEMENT

Our infrastructure provides consistent delivery of a high level of performance and portfolio support with a focus on quality and continuous improvement

We develop, grow and leverage superior relationships and networks to enhance our effectiveness in meeting strategic goals

Who Is In? Strategy of Investing WRITTEN BY ANDREA MILLER

he portfolio of companies in which Petters Group Worldwide invests is quite diverse. Many have asked, “How does Petters Group decide what types of businesses to invest?” In 2005, Mary Jeffries, COO/President of Petters Group, introduced the company’s Cornerstones: Strategy, Investment Process, Operational Excellence and Relationship Management, as the foundation supporting the Petters Group businesses to assist them in achieving their goals. “In an entrepreneurial environment like Petters Group we needed to have soft bumpers in order to help us sort through the numerous proposals we receive,” Jeffries said. By having defined sectors to invest, Petters Group is able to leverage industry expertise and resources from their investments to grow and generate superior investment returns. By way of example, one of the latest additions to the portfolio is Juice Media Worldwide. Juice Media’s new database management software helps maximize the information companies have in two ways. First, it develops ways to gather

:: P E T T E R S GROUP

additional information about customers and then it communicates specific sales, events or promotions which are most interesting to the client (see page 19 for their profile). When Joe Schmit of Petters Media and Marketing Group was first introduced to Juice Media, he saw numerous ways to connect them within the portfolio of companies. “To bring a company into the Petters Group portfolio, the opportunity needs a compelling strategic link and the ability to deliver a strong return on investment,” Schmit said. Juice Media has started work with YFly.com and Sun Country Airlines, which will roll out this spring. Being able to connect with other Petters Group companies is not enough for Petters Group to invest in a company. An investment profile is a key component of the Strategy Cornerstone which enables the first screening of a company. Besides having a strategic link, a company’s management team is looked at as well as the company’s values to make sure they are compatible with Petters Group. “We take an active role in the companies in which we invest and we need to make sure they are receptive to us and our input,” Jeffries said. Companies which are well established and looking for funding to take them to the next level through a product launch or materials sourcing are also attractive investments.

Generally, Petters Groups does not set out to acquire a controlling interest in a company. Petters Group’s current levels of investments range from 15% to 100% and include debt and equity funding. Two companies which this scenario played out for are Infinite Power Solutions (IPS) and Symmorphix. IPS is the developer of a thin-film lithium ion battery which can last years and recharges in seconds. IPS needed a means to mass produce batteries which is where Symmorphix came into the picture. They have a Physical Vapor Deposition (PVD) manufacturing system which was a perfect fit for IPS’s technology. Symmorphix’s manufacturing systems can deposit films with thicknesses ranging from 5 nano-meters to more than 10 microns with high deposition rates, low stress and excellent uniformity. An additional investment in IPS on their most recent capital raise has allowed them to integrate the PVD system and begin mass production. “Our ability to link companies in order for them to grow is one of the key means to Petters Group seeing a greater return on their investments,” George Danko, CEO of SpringWorks, the division of Petters Group which led these investments, said. An additional component people don’t often think of when looking at the value of a company is its intellectual property. If managed correctly and patents are secured on the technology it has developed, a company can multiply its value. “A company may have great technology but if they cannot sell the product they have it in it does not have a value,” Danko said. “Once it has a patent and a product that can be sold there is a value to that technology which is sometimes greater than the product they were trying to put it into,” he added. These screening components in the Strategy stage are applied to all four types of companies Petters Group invests in: Independent Operating Companies, Early Stage, Private Equity Emerging Technology and Outside Investments. There are currently investments in over 60 companies, of which 20 are actively managed by Petters Group, but that does not mean the other 40 are not utilized as connecting points for resources. While some may say the core areas Petters Group invests in are quite diverse, go into a brainstorming session led by Tom Petters and you will see the vision behind connecting the dots (i.e., merchandising to aviation to real estate to hospitality to media and marketing and to emerging technologies). PG

AROUND THE WORLD

re l a t i o n s h i p s

Your Worldwide Network Building Relationships Overseas

here are many available resources that exist to do business in foreign countries. Knowing how to best leverage those resources can increase business success by becoming “connected” in a foreign environment. It’s important to start by saying that relationships matter. You would never walk into a potential client’s office and try to make a deal without first making them comfortable with who you are and what you bring to the table. The same applies overseas; you should not expect that your first meeting with contacts will lead to an immediate success or sale. We need to understand that everyone must be “sold” on you as a legitimate partner for them. So, where do you find a global network of people interested in seeing your company thrive? Half the answer, not surprisingly, is the U.S. government; the other half, the one that you often forget, is the local government and other local organizations. Some of you may be rolling your eyes and thinking, “Government? What can those bureaucrats do for me?” Simply put, they can provide market intelli-

WRITTEN BY STEVE HARPER

gence, access, legitimacy and special opportunities. Let’s start with market intelligence. Currently, if you want to know if a market is good for your product, what do you do? First, you’ll probably check the Internet to see what people earn, and how many similar products are currently purchased in that country. So far, so good; you can usually get general information from the web. But if you can’t get what you need, these contacts can certainly get specific, updated data (to include informal economy information) for you in no time flat. But, what do you do once you have that data? Now you need to know, “How do they decide what brand they’ll buy?” or “What’s a growth area for this economy?” In that case, you could pay a local market research firm a lot of money and maybe get what you’re looking for, or you could get that information for free, or 7 nearly free, from the Embassy or the local U.S. Department of Commerce for that country. So what about access? Can you get a meeting with any business contact you want overseas? If not, think about your friends at the Embassy or the local government. Where you are an unknown commodity, Embassy and local government officials have been dealing with local businessmen and politicians for years. They know who’s who in the local economy and, as either a representative of the U.S. government or the local government, are taken seriously by most people in the society. This brings me to legitimacy. Your company may not be known overseas. By having the U.S. or the local government lobby introduce you, the dynamics of your relationship with the person on the other side of the table will be changed. You will be perceived as having been “vetted” since, in their minds, no government official would introduce you if you were not legitimate. It may seem odd coming from America where strangers do business all the time, but overseas there’s a much higher reticence to trust someone who is not recommended, and the source of the recommendation matters.

The beauty of taking the time to work with your government colleagues, both American and local, is that the relationships will pay off in ways that you would not expect. How much is an invitation to the Ambassador’s Fourth of July worth if you are able to meet the Minister of the Interior and develop a relationship that helps smooth over a custom’s issue? What’s it worth to be able to know what those new export rules REALLY mean thanks to the relationship you made with a local congressman at a lunch with the Commercial Officer?

“It’s who you know and HOW you know them.” —STEVE HARPER

And finally, there are a whole range of special benefits available to companies that invest in certain sectors. Countries are offering everything from free office space to tax holidays to special labor rules in exchange for investment. The opportunities are as endless and evolving as the global marketplace is diverse. The point is that if you are going to execute well on a worldwide scale, you need to build and nourish your international relationships with more than just our immediate business contacts. Let’s face it, you just don’t know when you’ll need those relationships, but rest assured that if you continue to work abroad you will need them one day. So let’s make them now, before we need them later. Yes, it will cost in time and money, but the effort to nourish nonimmediate business relationships will pay off. Please remember that you’re not alone if you need a hand with those relationships. Theo Brasch and I (aka: Petters Group Washington Office of International Affairs) stand ready to assist you with that. We have contacts in many countries and regions and can easily develop more. As the old saying goes, “It’s not just what you know, it’s who you know.” I would also add, “And it’s HOW you know them.” PG

SUMMER 2007

GALLERY

people and places

Polaroid Kicks Off 2007 Consumer Electronics Show : : ABOUT THE CONSUMER ELECTRONICS SHOW (CES) Produced by the Consumer Electronics Association (CEA®) and celebrating its 40th anniversary, the 2007 International CES ran Jan. 8-11 at the Las Vegas Convention Center. CES is the largest trade show in the world held annually with over 1.8 million square feet of exhibit space attracting 140,000 attendees from around the globe. In addition to the exhibition space, 200 sessions and 600 expert speakers encompass International CES Conferences.

Polaroid Product Showcases In addition to featuring the new line of LCD TVs, Digital Cameras, Portable DVD Players, and GPS, Polaroid laid out plans for the release of emerging technology products focused on increased connectivity and digital memory preservation. The Polaroid Digital Entertainment Center (DEC) demonstration was the focal point of the exhibit. The DEC can access, store, and play back digital music, photo and video files as well as stream those files wirelessly to other devices in a wired or Wi-Fi-based home network. Keeping approachability and ease-of-use top of mind, Polaroid showcased a handheld Wi-Fi enabled Personal Media Player (PMP) that supports music, video and photo files. The device wirelessly downloads files that can be exchanged with the DEC and other Polaroid home entertainment components.

Lastly, users of digital cameras will find Polaroid’s Media Backup Device a cinch to operate. The device, with Click-FreeTM technology, enables consumers to back up photos from their personal computer by simply plugging the device into the computer’s USB port. The media backup instantly searches the computer for all digital images and copies them over to the device without having to install or configure any software or even click a mouse, an industry first. [1] Early set-up stages of the new Polaroid booth [2] Setting up the Digital Living Center

[3] Digital Living Center [4] Polaroid booth ready for show >>>

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7 6 [5] Michelle Montazeri demonstrating the Digital Entertainment Center [6] Kurt Thielen showing the Personal Media Players

Matt Leinart Appearance Matt Leinart, first round draft pick of the NFL’s Arizona Cardinals and winner of the 2004 Heisman Trophy, appeared at the Polaroid Booth on Jan. 9. [7] Matt Leinart signing autographs at the CES booth

8 Hulk Hogan Visit Hulk Hogan, legendary WCW champion and current star of VH1’s Hogan Knows Best, visited the Polaroid Booth on Jan. 10. [8] Nick and Terry “Hulk” Hogan at the CES booth, ready to greet fans: Joe Schmit, Tom Petters, Mike O’Shaughnessy, David Baer, Dove Carter [9] The Hogan family: Nick, Linda, Brooke, Terry

SUMMER 2007

GALLERY

people and places

Connecting the Dots Forum 2007 : : “CONNECT, CONNECT, CONNECT.” Throughout the 2007 Petters Group Worldwide Forum, those were the words echoing through the hallways. Senior management from 18 of the Petters Group portfolio companies assembled in Orlando, FL, February 5-9, to “Connect the Dots”. Guest speakers walked them through exercises to realize their company’s gifts and needs and to examine marketing and human resources available to them. Break out sessions allowed for specialized topics on wireless, IP, 4x4 planning and budgeting to be explored. This year, representatives from our university partners of Miami University and Rollins College and community partner Minnesota Teen Challenge presented to the group. The week cumulated with a wrap up party/surprise “early” birthday party for Tom Petters. Family and friends came in to surprise him with a tribute video, top 10 Tom sayings, toasts and a large “Happy 50th” cake. The 1st annual Connect the Dots Award went to Rick Enrico, CEO of Juice Media for doing the best connecting at the Forum. The third

annual Tommy Award went to Andrea Miller, Director Corporate Communications for Petters Group for her demonstration of the company’s core values during 2006. [1] Yuta Ito, Polaroid Japan and Brad Kullberg, Polaroid have a discussion during Monday night’s opening exercise. [2] Sai-Wai Fu, Yes Video, Mark Laumann, Petters Group and George Danko, SpringWorks are showing the tropical spirit during Tuesday night’s Margaritaville Party. [3] Amy Waara, Petters Group helps Joe Schmit, Petters Media and Marketing Group, Shaun Nugent, and Rick Enrico, Juice Media who think they need to bundle up while under hypnosis during Tuesday night’s event. [4] Anne Slein, Polaroid, Patty Hamm, Petters Group and Mary Kelly, Petters Group/Polaroid knew the HR teams were in sync but had to

laugh when they all showed up in pink.

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[5] The coordinators who held the week together were Jared Danielson, Carrie Massine, Anastasia Dorsey, Amy Waara, Dawn Ackerman and Jan Peterson. [6] Theo Brasch, Petters Group, Marie Elamar, BroadSign, Drew Levin, YFly and Kyle McDonald, Polaroid work on their connections during Monday’s opening program. [7] Mary Jeffries visited with Polariod’s Greg Kandare, Jon Pollock and his wife Melissa and Scott Hardy and his wife Tiffany during Thursday night’s party. [8] Jack Goetzke, Polaroid, Cheryl Mau, Polaroid, Mary Kelly, Petters Group/Polaroid and Mike Peterson, Polaroid Europe all enjoyed time together at the Thursday evening final party. [9] Joe Schmit of Petters Media and Marketing Group caught a little sleep on the flight home after a week of “Connecting the Dots”.

9 SUMMER 2007

GALLERY

people and places

Freeze Yer Cheeks Off Winter Wellness Week : : During the cold Minnesota winter, when most people feel tired and sluggish, the Minnetonka office’s HR department re-energized staff with the “Freeze Yer Cheeks Off” Wellness Week. Held Jan. 21-26, the week was kicked off with a Sunday family ice skating event at The Depot in downtown Minneapolis. Work week activities included learning lunches, exercise classes, healthy meals and snacks, an off-campus night of tubing and sledding, and Petters Group’s own “Winter Olympics”. Employees were asked to break from work to participate in snowman

building, snow angel making, snowball throwing, frozen turkey bowling, a snow shoe relay and a shoveling contest. Friday capped the week with a 2-mile run/walk. Congratulations to race winners Mollie O’Brien and Dave Koehler, and thank you to all who made the week a healthy success.

[1] Women’s Final 4: Terri O’Shaughnessy, Krystal Anderson, winner Mollie O’Brien, and Ann Karsh [2] Run/walk participants at the starting line [3] Men’s Top 3: Thomas McKinney, winner Dave Koehler, and Tom Gilgenbach [4] Sandy Indahl hoping to join the

Professional Turkey Bowling League [5] Heidi Mueller spreads her wings outside

:: P E T T E R S GROUP

THE PETTERS MATRIX AARON CHANG INTERNATIONAL, LLC 5600 Avenida Encinas Suite 130 Carlsbad, CA 92011 www.aaronchang.com BRAX CAPITAL GROUP 9440 S. Santa Monica Blvd. Suite 710 Beverly Hills, CA 90210 BROADSIGN 827 S. Bridgeway Pl. Suite 200 Eagle, ID 83616-6097 www.broadsign.com BUSINESS IMPACT MARKETING GROUP 18760 Lake Drive East Chanhassen, MN 55317 www.impactgroup.us CAMPUS 1 HOUSING 4400 Baker Rd. Minnetonka, MN 55343 www.campus1housing.com COLLEGEVILLE DEVELOPMENT GROUP 1015 W. St. Germain St. Suite 340 St. Cloud, MN 56301 www.collegeville communitities.com FIDELICA MICROSYSTEMS, INC. 1585 McCandless Drive Milpitas, California 95035 www.fidelica.com FINGERHUT DIRECT MARKETING 7777 Golden Triangle Dr. Eden Prairie, MN 55344 www.fingerhut.com FINGERHUT FULFILLMENT 6250 Ridgewood Road St. Cloud, MN 56303 www.fingerhut.com

INFINITE POWER SOLUTIONS 14998 West Sixth Avenue Building E, Suite 600 Golden, Colorado 80401 www.infinitepower solutions.com JOHN T. PETTERS FOUNDATION 4400 Baker Rd. Minnetonka, MN 55343 www.johntpetters foundation.org JUICE MEDIA GROUP 7860 Mission Center Ct Suite 201 San Diego, CA 92108 www.juicemedia.com METROPOLITAN MEDIA GROUP 5001 American Blvd. W. Ste 400 Bloomington, MN 55437 www.metmediagroup.com PETTERS AVIATION 4400 Baker Rd. Minnetonka, MN 55343 www.pettersgroup.com PETTERS CAPITAL Flagler Center Tower 505 S. Flagler Dr. Ste 700 West Palm Beach, FL 33401 www.pettersgroup.com PETTERS COMMERCIAL REAL ESTATE GROUP 4400 Baker Rd. Minnetonka, MN 55343 www.pettersgroup.com PETTERS CONSUMER BRANDS 4400 Baker Rd. Minnetonka, MN 55343 www.pettersgroup.com PETTERS MEDIA AND MARKETING GROUP 4400 Baker Rd. Minnetonka, MN 55343 www.pettersgroup.com

PETTERS WAREHOUSE DIRECT (CORPORATE) 4400 Baker Rd. Minnetonka, MN 55343 PETTERS WAREHOUSE WAITE PARK / ST. CLOUD 306 2nd Street South Waite Park, MN 56387 www.petterswarehouse.com

TAM O’SHANTER LODGE & CONFERENCE CENTER 89405 Jack Pine Trail Cornucopia, WI 54827 www.tamoshanterlodge.com TRIO MARKETING 4400 Baker Rd. Minnetonka, MN 55343 UBID

PETTERS WAREHOUSE MALL OF AMERICA North Garden Level 3 (N356) Bloomington, MN 55425 PETTERS WAREHOUSE MOUNDSVIEW SQUARE 2553 Hwy 10 West Moundsview, MN 55112 POLAROID 4400 Baker Rd. Minnetonka, MN 55343 1265 Main Street Waltham, MA 02451 www.polaroid.com POLAROID HOSPITALITY Flagler Center Tower 505 S. Flagler Dr. Ste 700 West Palm Beach, FL 33401 www.polaroid.com

8550 W Bryn Mawr Ste 200 Chicago, IL 60631 www.ubid.com WIDEBLUE Vale of Leven Industrial Estate Dumbarton, Scotland G82 3PW www.wide-blue.com YES VIDEO 3281 Scott Blvd. Santa Clara, CA 95054 www.yesvideo.com YFLY.COM 12100 Wilshire Boulevard Ste. 800 Los Angeles, CA 90049 www.yfly.com

SONIQCAST 4400 Baker Rd. Minnetonka, MN 55343 www.soniqcast.com SPRINGWORKS 4400 Baker Rd. Minnetonka, MN 55343 www.pettersgroup.com SUN COUNTRY AIRLINES 1300 Mendota Heights Rd. Mendota Heights, MN 55120 www.suncountry.com SYMMORPHIX 1278 Reamwood Avenue Sunnyvale, CA 94089-2233 www.symmorphix.com SUMMER 2007

REALITY BYTES

rick enrico

Rick Enrico CEO Juice Media Worldwide WHAT IS YOUR FAVORITE ELECTRONIC GADGET? My iPod loaded with Audiobooks. I have over 200 on it and I am always ready to recommend.

WHAT WOULD YOUR FIANCÉE SAY IS YOUR WORST HABIT? It is a rare occasion when I am completely disconnected from work. I am working on it as I believe you have to have balance.

WHAT IS YOUR FAVORITE RESTAURANT/MEAL? When I was young, my father had a restaurant called Scarpelli’s in Minneapolis. To this day I haven’t found anything that can compare.

WHAT IS YOUR DREAM CAR AND WHY? I really don’t have a single “dream car.” I do have “goal cars” of which one is a 1957 T-Bird Convertible. I believe it represents a respectful piece of our history and is all about class.

IF YOU COULD DO ANYTHING FOR A JOB, WHAT WOULD IT BE? Seriously, I am doing it now. Taking the risk and building a company is the most exciting ride one could ever embark upon. I plan on living many of these dreams throughout my business career.

WHAT WAS THE LATEST DESTINATION ON YOUR VACATION LIST?

I was fortunate enough to survive my bachelor party in Las Vegas with 8 of my friends and brothers. 54

:: P E T T E R S GROUP

HOW DO YOUR FRIENDS DESCRIBE YOU? Driven, Positive, Outgoing, Understanding, and Honest.