Contact: Paul Hunt, Intellectual Property, (517) 432-4499; or Russ White, University Relations, (517) 432-0923, whiterus@msu.edu

5/4/2005

EAST LANSING, Mich. – Michigan State University is joining forces with the cities of Lansing and East Lansing to establish the Lansing Regional SmartZone, leaders of the university and cities announced today.

The goal of the SmartZone is to create a method and environment that identifies commercial opportunities within MSU and other places, and grows or attracts businesses by providing incubator space, entrepreneurial expertise, exposure to potential markets, access to capital, incentives and long-term profitable locations.

Michigan SmartZones are collaborations between universities, industry, research organizations, government and other community institutions intended to stimulate the growth of technology-based businesses and jobs by aiding in the creation of recognized clusters of new and emerging businesses, especially those primarily focused on commercializing ideas, patents and other opportunities surrounding corporate, university or private research institute research and development efforts.

A program of the Michigan Economic Development Corporation (MEDC), SmartZones provide distinct geographical locations where technology-based firms, entrepreneurs and researchers can locate in close proximity to all of the community assets that will assist in their endeavors.

“The role of the 21^st century land-grant university is to blend access to cutting-edge information, economic competitiveness and quality of life,” said MSU President Lou Anna Kimsey Simon. “A key element of this is working with our stakeholders and partners to develop comprehensive and long-term strategic plans for viable economic growth.

“A strong region and a strong university go hand-in-hand, and today I’m excited that we’re taking the first step in the revitalization of the region.”

The SmartZone Partners will work together to focus on economic growth including jobs, income and investment; encourage the entrepreneurial spirit; and provide value to client businesses and stakeholders.

In addition, the partners will seek downstream authorization to employ tax increment financing from the state of Michigan through MEDC.

“Across Michigan, higher education institutions make a critical contribution to economic development through things like SmartZones,” said David Hollister, director of the Department of Labor and Economic Growth for the state of Michigan. “The mid-Michigan region is very fortunate to have Michigan State University in its midst as an engine for research and innovation. I welcome President Simon’s infusion of enthusiasm and commitment to the region’s future.”

The SmartZone will utilize MBI International as its initial primary incubator facility. The SmartZone will also support the creation of a Technology Incubator in downtown East Lansing. This facility will work to develop MSU spin-offs and support other local high-tech ventures. The East Lansing Technology Incubator will be phased in over the next three to five years.

“MSU faculty are actively generating spin-off companies in the Lansing area,” said Paul Hunt, associate vice president for research at MSU. “The SmartZone will offer a combination of business accelerator services to identify and commercialize opportunities and technologies, including those produced by research at MSU.”

“This SmartZone represents another way for Lansing Community College to continue to partner with local businesses and entrepreneurs to build a stronger community and create more opportunities for our stakeholders,” said LCC President Paula Cunningham. “We are excited about creating an environment that welcomes innovation and cultivates an entrepreneurial spirit.”

The Lansing Regional SmartZone is divided into four distinct geographic areas:

A. The area in downtown Lansing bounded by Grand Avenue to the west, Michigan Avenue to the south, the Grand River to the east and Shiawassee Street to the north.

B. The area in Lansing bounded by I-496 to the west, the Lansing corporate city limit to the north and northeast, Collins Road to the east and Dunkel Road to the south.

C. The area in East Lansing bounded by Bogue Street to the west, Grand River Avenue to the north, Hagadorn Road to the east, and the Red Cedar River to the south.

D. The area in downtown East Lansing contained within the East Lansing Downtown Development Authority District.

“The SmartZone creates a great place to attract and grow high-tech businesses that will provide rewarding job opportunities for people throughout the Lansing region,” said Lansing Mayor Tony Benavides.

“The SmartZone is a unique partnership that will generate new jobs and economic growth by putting our region at the forefront of high-tech business development,” said East Lansing Mayor Mark Meadows. “East Lansing is excited to play a key role in this endeavor.”