Winter 2006 - Tiffany Nash

:: 

TABLE of CONTENTS 

ON THE COVER 

44POLAROID :: Known worldwide for its instant film, 

Polaroid is now re-emerging as a brand to contend with in the 

consumer electronics industry. 

26 

IN every ISSUE 

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

features 

40 :: INSIDE GLANCE 

PETTERS HOSPITALITY 

Peek inside Petters Hospitality as 

they introduce Polaroid LCD televisions 

to a new industry. 

42 :: PETTERS MEDIA GROUP 

Leveraging Petters Group resources 

to build stronger companies. 

galleries 

22 :: JOHN T. PETTERS FOUNDATION 

Party of the Year! See pictures and 

details from the first annual Legacy Gala. 

26 :: CHARITABLE GIVING GALLERY 

A summer of fun charitable events 

is captured in pictures. 

50 :: PEOPLE & PLACES 

From pets to parties, see events 

across the country. 

22 

4 letter from tom :: 6 letter from andrea :: 8 around the companies :: 28 connecting points ::

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

30 32 

38 35 

departments 

30 :: MAKING A DIFFERENCE 

JIM WEMHOFF 

Taxes, a dreaded word for many 

but for Jim Wemhoff he finds it a 

means to educate people. 

32 :: EXECUTIVE PROFILE 

RICK ENGLES 

A deep dive is more than just a hard 

look at the numbers for CFO Rick Engels. 

34 where in the world is tom? :: 53 the petters matrix :: 54 reality bytes 

52 

35 :: VALUES 

LARRY HARMER 

Running a company is like balancing on a ball. 

38 :: THE LEARNING CENTER 

Summer internships go beyond filing 

and answering phones. 

48 :: CORNERSTONES 

Process – Ask, Don’t Guess, 

What Would Legal Do? 

WINTER 2006 

::

4 :: PETTERSGROUP

LETTER from TOM 

After the first edition of Petters Group magazine 

came out, I often heard people say “I didn’t 

know all of these companies even existed!” 

If you know more now, the magazine is doing its job. 

Bringing you information about our diverse collection of 

companies is one reason this magazine exists. We have 

investments in more than 60 businesses and we actively 

manage more than 20. The more you know about them, 

the better equipped you’ll be to help us act on opportunities 

to connect them in 

mutually beneficial ways 

and leverage their respective 

strengths. 

A new addition to the 

family – too new, in fact, to 

be a major feature in this 

issue – is Sun Country 

Airlines. With our partner 

Whitebox Advisors, we 

completed the purchase of Sun Country at the end of 

October. Sun Country is a terrific business, just beginning to 

be recognized as a gem in the airline industry. The opportunities 

for growth here are outstanding. 

We’ll act on growth opportunities at Sun Country as 

we do in all of our businesses: by leveraging capital, 

technology, brands, innovation and – most of all – our 

collective minds and talents. One way we’re keeping our 

minds open, engaged and challenged is through our 

continuous learning programs. One of them is the 

Learning Lunches organized by human resources. These 

lunches offer opportunities to expand our knowledge on 

a variety of topics. 

Among the topics we can’t know enough about is 

how to work better across borders and cultures. Many of 

you are already working with people globally as product 

distribution and manufacturing have now extended 

beyond the United States and China. Trips to Mexico, 

Spain, Italy, Austria, Germany, Brazil, Japan, Central 

America and other countries are becoming more common 

as the call for our products and services grows. 

Another way we emphasize learning at Petters 

Group is through our internship program, now in its 

fourth year. Nearly 50 students joined us this past summer 

in Minnetonka and, for the first time, at the Boston 

and China offices. The feedback from the interns was terrific. 

When you hear, “This is an experience that will 

“I not only use all the brains that I have, 

but all that I can borrow.” 

— WOODROW WILSON 

stay with me for the rest of my life,” you realize how 

important the program is to the students and to the 

company. We are looking to expand the intern program 

into fall, winter and summer sessions. 

As Petters Group grows in both scope and scale, 

having the right person at the helm is critical. While we 

will always be an entrepreneurial and opportunistic 

enterprise, we also want to be one that is disciplined 

about decision-making, operationally excellent and 

financially sound. Since joining Petters Group, Mary 

Jeffries has become the champion and driving force for 

establishing controls, processes and systems that enable 

us to act on our opportunities and strategies. We’re recognizing 

her influence, contributions and commitment 

by naming her President of Petters Group Worldwide. 

Congratulations to Mary – and to all of you – for a 

terrific 2006. I’m looking forward to 2007 with more 

excitement and confidence than ever. 

TOM PETTERS 

WINTER 2006

LETTER from ANDREA 

6 :: PETTERSGROUP 

THE SEASON 

OF CHANGE 

One would have a hard time convincing me there is a more beautiful location in the world than Minnesota during 

the peak of fall. Mother Nature has painted our landscape with brilliant, indescribable shades of yellow, 

orange and red. Then as quickly as they appear they are gone as the grays of winter set in. As with many aspects 

of our lives, we anticipate the change, we are excited to see it happen and then we are leery about what will come next. 

Many of the portfolio companies of Petters Group Worldwide are in one of these stages of change right now. Throughout 

this issue of the Petters Group magazine you will see stories about some companies that are re-launching, some that are reorganizing 

and others that are combining their efforts to create something new. Accepting change for some of us is easy while 

others need to know exactly what all of this means. It is especially at these times where the Core Values of Petters Group – 

Innovation, Agility, Caring, Humility, Execution and Integrity – are called upon from our people. It is our goal to help you make 

these more than just words you see on plaques around our offices but to help bring them into how you do business both internally 

and externally. We have made changes to two sections of the magazine this time in order to include stories focusing on 

the Core Values and the Cornerstones. As foundations of how Petters Group operates, we wanted to share the stories of how 

people and ideas have incorporated them into their everyday lives. 

ANDREA MILLER

VOLUME 1 ISSUE 2 

PUBLISHER Thomas J. Petters 

EDITORIAL 

EDITOR Andrea Miller 

andrea.miller@pettersgroup.com 

ASSISTANT EDITORS & WRITERS 

Tiffany Nash, Mollie O’Brien 

CONTRIBUTING EDITOR Laura Putzer 

CONTRIBUTING WRITERS Laura Bartlett, Bud Fisher, 

Tristan Galvan, Tom Gilgenbach, Kristen Hamilton, 

Larry Harmer, Sheryl Hirsch, Ann Karsh, Ann Kieren, 

Elizabeth Millard, Liz Orenstein, Lorrie Parent, Kathy Radley, 

Sharleen Reyes, Joe Schmit, Nurlan Urazbaev 

ART 

DESIGN/ART DIRECTION Heather Nelson 

CONTRIBUTING DESIGNERS 

Jenna Akre, Yola Hartmann, Dave Koehler, Jess Lowenberg, 

Dana Oelfke, Emily Sederstrom, Sarah Sucansky 

CONTRIBUTING PHOTOGRAPHERS 

Todd Buchanan, Tate Carlson 

CIRCULATION 

CIRCULATION DIRECTOR Corey McMahon 

ADVISORY BOARD 

Bill Dunlap, Rick Engles, Mary Jeffries, 

Patty Hamm, Steve Harper 

Special Thank You to the staff of Metropolitan Media Group 

for all their assistance in producing Petters Group magazine. 

—————————————————————————— 

HOW TO REACH US 

ADDRESS > Petters Group Worldwide 

4400 Baker Rd., 

Minnetonka, MN 55343 

Provide feedback, story ideas and events to cover to 

magazine@pettersgroup.com 

REPRINTS > Contact Tiffany Nash at 

tiffany.nash@pettersgroup.com 

—————————————————————————— 

© Copyright 2006 Petters Group Worldwide, LLC, 

all rights reserved. The opinions of the columnists are their own. 

Petters Group is published by Metropolitan Media Group 

exclusively for Petters Group Worldwide.

:: UPFRONT around the companies 

WELCOME TO THE FAMILY 

Sun Country Airlines Joins Petters Group 

As Sun Country Airlines continues its growth, the need for additional 

capital to fuel the expansion became apparent. Petters 

Group Worldwide and Whitebox Advisors have stepped forward 

and purchased Sun Country. At a news conference held at the Sun 

Country hangar near the Minneapolis/St. Paul airport on October 31st, 

more than 200 employees, guests and media gathered to hear from the 

new Chairman, Tom Petters and CEO, Shaun Nugent. “Our entire organ- 

Sun Country employees at the news 

conference Ronnie Tallen, Amy 

Jungwirth and Michael Wielinski 


ization is very excited to 

be a part of the Petters 

Group family of companies,” 

Nugent said. 

“This is a significant 

move for the future of 

Sun Country.” The 

acquisition will provide 

Sun Country with the 

Sun Country’s CEO Shaun Nugent 

conveyed messages of growth during 

the news conference with Tom Petters 

of Petters Group and Andy Redleaf of 

Whitebox Advisors. 

capital to continue the growth momentum of expanding the airline’s offerings. 

Plans to expand the airline include continued development of a 

strong consumer product focused on service targeted at both leisure and 

business travelers while maintaining the high level of customer service that 

has made Sun Country a consumer favorite for the past 25 years. 

Sun Country currently offers scheduled service to more than 31 

destinations in the United States, Mexico and the Carribean. Their 

amenities such as low cost upgrades to first class, comfortable leather 

seats on new Boeing aircraft and easy access from the Humphrey 

Terminal, have attracted many loyal Sun Country customers. The 

exceptional service provided by the Sun Country team continues to be 

the guiding principal for the company’s success. Clearly the formula is 

working…Sun Country Airlines was recently ranked as one of the top 

ten domestic airlines in both Travel+Leisure’s World’s Best list and 

Conde Nast Traveler’s Top 100 reader poll. 

Look for a feature on Sun Country in the next Petters Group magazine.

DID YOU KNOW? :: 

Great Place to Work 

MINNETONKA OFFICE 

VOTED INTO TOP TEN 

The Minneapolis/ St. Paul Business 

Journal conducts a survey of employees 

every year to find the 

“Great Places to Work” 

in Minnesota. This 

year, the employees in 

the Minnetonka office 

voted Petters Group as one of 

the “Great Places to Work.” “To get the call 

that we were in the top ten of mediumsized 

companies was a great day,” Patty 

Hamm, EVP of Human Resources and 

Learning Center said. “We try very hard to 

create a special culture for the employees, 

so to hear their feedback in this manner 

shows us we are right on target.” 

The announcement came out August 

Aug. 18th in a special section of the Business 

Journal and was announced to employees 

with an executive served breakfast. The 

luncheon honoring the 45 companies who 

had won was not held until September 

21st which was perfect timing to 

coincide with Employee Appreciation 

Week. Eight employees, nominated for 

their demonstration of their Core Values, 

attended the luncheon at the Hilton 

downtown with the executive team of 

Petters Group and Polaroid. 

With an approval rating of 91.08, Petters 

Group ranked fourth in companies with 

200-1000 employees in Minnesota. “This 

was quite an honor. We want to thank 

everyone who voted and for their important 

feedback about the company,” Hamm said. 

PRODUCT SPOTLIGHT :: 

Viewing Digital 

Photos Made Easy 

NEW POLAROID FRAME HITS MARKETS 

Polaroid is making it easier than ever to 

enjoy digital photos with a line of 

Polaroid Digital Photo Frames. The new 

frames look just like picture frames, but that’s 

where the similarities end. They read flash memory cards to display hundreds of digital photos 

in customized slide shows. And they’re versatile because they can use a variety of flash 

memory cards commonly used by digital cameras. The frames come in 5”, 7” and 10” sizes 

and are available at CVS, Wal-Mart and Circuit City. 

Zak Kroschel, Consumer Electronics Product Manager for Polaroid Consumer Electronics, 

said the digital photo frame is sure to be a big hit. “We’re making it incredibly easy to view and 

share digital images that otherwise might stay on a computer, never to be seen again. A flash 

memory card can hold hundreds of images so your view is always changing.” 

Basic features include the ability to create slide shows and select intervals between photos. 

Some even come with a remote control for the ultimate in viewing convenience. Other features 

on the larger 10.4” model include the ability to watch video formats or play MP3 music 

files, allowing the viewer to match music to the photo album. 

Future goals are to include a subscription service that adds value and makes the product 

even more interesting. “Digital imaging advancements will let users send or receive personal 

photo albums via the Internet to friends or family with a photo frame and an Internet connection. 

The service is extremely affordable so it should encourage the purchase of additional 

units to be used as gifts. Time will tell, but this could be the hottest Christmas present for 

2006,” Kroschel said. 

YEARS OF HOME RUNS :: 

Red Sox Tickets Awarded 

POLAROID IS FORTUNATE to have 

so many employees with more than 

30 years of experience, and many 

of them entered a drawing for Red 

Sox tickets. We appreciate their 

interest and their service to the 

company. By chance, both of the 

winners are from the R-5 Battery 

Plant, and both have 33 years of service with Polaroid. Congratulations to Donna 

Barry, Materials Technician IV and Tom Crittenden, Senior Evaluation Technician for 

winning the Red Sox tickets. A special thank you to all our employees with extensive 

years of service. 



The Polaroid 

Corporation 

Archives, a 

unique collection 

of materials that 

document the 

evolution of the 

company and its 

innovations, 

have been donated 

to the Harvard Business School’s Baker Library. 

Housed in the library’s Historical Collections, the Polaroid Corporation 

Archives include approximately 1.5 million items dating from the company’s 

founding in 1937 to the present. The collection also chronicles the 

invention of instant photography by Polaroid founder Dr. Edwin H. Land, 

as well as company press clippings, packaging, employee newsletters, and 

annual reports. Artifacts within the collection include sunglasses, military 

goggles, 3D glasses, and examples of many of the camera models and 

accessories Polaroid produced from the early 1950s to the late 1990s. 

Portions of the collection will be available for research use in mid-2007. 

PARTY IN MALIBU :: 

Polaroid Beach House Hosts the Stars 

IT WAS PARTY TIME AT THE 

POLAROID BEACH HOUSE 

IN MALIBU this summer as Alist 

celebrities gathered at the 

exclusive ocean-front estate for 

a series of high-profile events. The project 

took place over six weeks in July and August 

and included naming rights for the residence. 

The Polaroid Beach House proved to be the 

hot hangout, but the real success can be 

measured by the astonishing amount of publicity 

Polaroid received from the caliber of 

events held there. 

The lavishly decorated California home was 

decked out with large flat panel TVs, digital 

and instant cameras, and portable DVD players 

allowing the Hollywood “it” crowd to 

interact with Polaroid’s latest gadgets. In 

addition to Polaroid, several other companies 


Polaroid Donates 

Corporate Archives To 

Harvard Business School 

sponsored products for the events. A sampling 

of those products included Lia Sophia 

jewelry, Alterna hair care products, 267 

Infusions flavored vodka, and Restoration 

Hardware home furnishings. 

The first and largest event, Lindsay 

Lohan’s 20th birthday bash, drew such 

celebrities as Owen Wilson, Woody 

Harrelson, Nicole Richie, Courtney Love 

and Ivanka Trump. Other Polaroid Beach 

House events included a World Cup viewing 

party, a dinner hosted by Molly Simms, 

Mommy-and-Me Day, and a clam bake 

attracting celebrities Leonardo DiCaprio, 

Jeremy Piven, Paris Hilton, and Kate 

Bosworth, to name a few. The high-profile 

functions were coordinated by Fingerprint 

Communications, a Los Angeles-based 

public relations firm, in conjunction with 

The Polaroid Corporation Archives also contain a vast and comprehensive 

set of photographs taken by Polaroid employees and professional 

photographers from 1937 to the 1990s. These images were taken for 

research purposes during the testing of new Polaroid products and as 

part of the company’s advertising campaigns. 

The donation, with all expenses funded by Harvard Business 

School, was the result of discussions led by Brad Kullberg, VP Corporate 

Business Development, with the Baker Library which culminated in an 

agreement signed earlier this year. 

Tom Petters, Chairman of Polaroid, said the archives reflect 

Polaroid’s dynamic evolution. “We’re committed to honoring 

and preserving the legacy of Dr. Land and the evolution of 

Polaroid as the company continues to grow its successful consumer 

electronics and eyewear businesses, and looks to expand 

in other categories.” 

“We are very pleased that these materials, which capture a vital 

part of American innovation, will be preserved at Harvard Business 

School,” Tom Beaudoin, Polaroid CFO/COO said. “By sharing the 

archives, Polaroid hopes to inform students of history and inspire 

generations of entrepreneurs.” 

the internal marketing team at Polaroid. 

The Polaroid Beach House was the place 

to see and be seen this summer, resulting in 

an outstanding coverage in national magazines, 

including People, InTouch, Life & Style, 

and US Weekly. In addition, the Polaroid 

Beach House was featured on Access 

Hollywood, E! News and The Insider. The 

media exposure garnered from these events 

translates to great publicity for the Polaroid 

brand as the company looks to connect with 

a younger generation of people who may not 

be as familiar with Polaroid as their parents.

PETTERS GIVES INSIGHT 

INTO DOING RIGHT :: 

ASK TOM PETTERS about 

his business model and you 

are sure to hear a firm set 

of ethics running through 

everything he does. Although this comes 

naturally to him in this day and age, it is 

a lesson that must be taught to many 

others with the drive to become successful 

in a profit-driven world. 

Doing Right in a Shrinking World, a 

book written by Louis DeThomasis 

and Neal St. Anthony, was released in 

August on this controversial topic and 

includes an interview with Tom Petters, 

and several other top corporate CEOs 

including Brad Anderson from Best 

Buy Co., Nicholas Moore, 

PriceWaterhouseCoopers, Robert 

Kierlin, Fastenal Company and Warren 

Staley of Cargill. As the world continues 

to globalize, this issue has become 

ever present and increasingly important. 

The authors gave CEOs like 

Petters the opportunity to share their 

experiences with ethical issues that 

have challenged them over the years 

and how they dealt with them. Former 

CEO of Federal Signal Corporation, 

Joseph J. Ross said of the book, “I 

think this book should be on the desk 

of every corporate leader, student, 

entrepreneur, not-for-profit manager 

—basically anyone who is involved in 

the free enterprise system.” 

PARTY WITH THE STARS 

Polaroid Lounge at MTV Awards Draws Much Attention 

Polaroid rolled out the red carpet and played host to a preparty 

to MTV’s Video Music Awards at the exclusive 

Marquee nightclub in New York City on August 29th and 

30th. The event attracted up-and-coming as well as established 

musicians and actors who were treated to a little pampering leading 

up to the big night. 

FLYING IN STYLE :: 

First Airbus A318 purchased 

PETTERS GROUP WORLDWIDE has entered into an 

agreement with Airbus to acquire an Airbus A318 Elite 

private corporate jet, becoming the first US customer for 

such aircraft type. Based in Minnetonka, Minn., Petters 

Group plans to use its subsidiary Petters Aviation to 

manage the A318 Elite for private corporate domestic 

and international flights. 

“Airbus’ A318 Elite is a best-in-it’s class corporate jet. 

We look forward to an on-going partnership with Airbus 

in developing the North America business jet market,” 

Tom Petters, Chairman and CEO of Petters Group said. 

The Airbus A318 Elite is the newest and smallest 

member of the Airbus corporate jetliners. It delivers 

more in features such as fuel-saving wingtip-fences, 

cost-saving centralized maintenance and weight-saving 

composites. 

In-between sipping champagne 

and Godiva coffee drinks, enjoying 

foot massages by Dr. Scholl’s, and 

signing up for YFly, guests made 

their way through the Polaroid 

Lounge and indulged themselves 

with the hottest denim, sunglasses, 

jewelry, accessories and, of course, 

Polaroid electronics. 

The PDX-0074 blue Polaroid DVD 

player was a hit with both Snoop 

Dogg and Christian Slater. Panic! at 

the Disco, the band that took home 

the Best Video of the Year, will now be 

snapping their photos in style with their new m635 digital cameras. In 

exchange for a digital camera, Carson from Queer Eye for the Straight Guy 

shared a bit of unsolicited, but much needed, fashion insight with 

Polaroid’s Zak Kroschel. Among other celebrities who flocked to the 

party were Nick Lachey, Vanessa Minnillo, Wyclef Jean, and Dylan 

McDermott. 



20 YEARS OF RUNNING 

10K Road Race Marks 20th Anniversary 

FOURTH ANNIVERSARY MARKED WITH RECORD SALES :: 


IN EARLY NOVEMBER, FINGERHUT 

DIRECT MARKETING celebrated 

the fourth anniversary of its first 

catalog mailing amid excellent 

sales and sales growth. 

The 2006 sales are promising 

to exceed everyone’s expectations 

and when the year comes 

to a close in early February, 

they expect growth for the year 

to exceed last year’s level by a 

substantial margin. 

Fingerhut was already 

enjoying record growth when 

this year’s holiday season 

kicked off in early October 

with the Holiday Big Book. 

This one catalog 

The Polaroid 10K Road Race Series in the United 

Kingdom marked its 20th Anniversary with yet 

another record breaking year. The series of four 

10K road races attracted in excess of 1,000 entrants, 

including a large number of Polaroid Scotland employees, 

both past & present! Participants who entered all four 

events, which took place over a three week time period, 

were given Polaroid sport sunglasses and a Polaroid 

branded T-shirt. 

The series, sponsored by the Polaroid Vale of Leven site, 

promotes health through active participation not only for 

Polaroid employees, but also for the surrounding communities 

where they live and work. 

The event has grown from its humble beginnings in 

1987, when a group of Polaroid employees started the event 

with 150 participants, to have over 1,000 racers in 2006. 

Today, the event is recognized as the Premier Road Race Series 

in Scotland. 

With the support of Polaroid over the years, thousands of 

pounds have been donated to enable growth in athletics at 

grass roots level within the 13 local primary schools. Many 

students participated in the ‘Fun Run’ at the Vale of Leven 

event which started and finished at Loch Lomond Shores this 

year and attracted more than 3,000 visitors. 

To view the history and best selection of images over the 

years, visit www.polaroid-10k.co.uk. 

contributes nearly 10% of the total company 

sales for the year, so strong Big Book 

performance is critical to success. 

Bob Safford, Fingerhut’s Chief Marketing 

Officer is extremely pleased with Big Book sales 

so far. “With over half the sales that will result 

from this year’s Big Book already in, we expect 

to exceed last year’s record Big Book sales of 

over $25 million,” he said. 

It’s not only the Big Book that is doing well. “It 

seems we’re breaking records every day. We just 

enjoyed our biggest day ever with over $2.5 million 

in sales. We’ve broken records on the web, and 

we’ve reached new heights in our distribution 

center with record levels of packages,” Safford said. 

As Fingerhut enters the 2006 home stretch, 

they are looking forward to their first-ever 

$3 million dollar day just after Thanksgiving.

PRODUCT SPOTLIGHT ::Back-to-School, Back to Color 

POLAROID LAUNCHES THREE COLORED PORTABLE DVD PLAYERS 

BACK-TO-SCHOOL MEANS STOCKING 

more than pencils, notebooks, and glue 

sticks for Target stores; this fall it also 

means stocking the new Polaroid red, blue, 

and orange portable DVD players. 

“As we see portable DVD players commoditizing, 

Polaroid is finding another way 

to differentiate from what other brands are 

offering,” Jim Koestler, VP Products said. 

“Colored portable DVD players offer a deviation 

from the standard black or silver 

units customary on store shelves.” These 

three portables will also make for a great 

companion to the 7” portable DVD player 

with wireless headphones already on Target 

shelves. “We feel our ability to differentiate 

our product from the rest of the pack adds 

great value for the Target guest,” Steve 

Ratliff, SVP Polaroid Domestic 

Sales said. In addition, the 

trendy colors illustrate 

Polaroid’s trust in Target’s ability 

to know its guest, their interests, 

and what will sell. 

Not only do the players come 

in three colors, they also feature 

soft-touch paint – a smooth, 

softer finish, popular with customers. 

“With today’s fastpaced 

families always on the go, 

the addition of soft-touch rubberized 

exterior provides sure 

grip, extra protection, and 

added durability,” Koestler said. 

The colored portables were 

featured in a Target circular 

advertisement, as well as displayed 

on a large colorful end 

cap in Target stores. “This is 

great business for Polaroid,” 

Ratliff explained. “With Target’s 

back-to-school season and 

push into the fall months, we 

could not have won this business 

at a better time.” 

KEY MANAGEMENT 

NEWS :: Joe Schmit 

Joins PMG 

BORN IN WISCONSIN, 

JOE SCHMIT IS A GREEN 

BAY PACKERS FAN WHO 

“SAW THE LIGHT AND BECAME A 

VIKINGS FAN” when he moved to 

Minneapolis in 1985 to be a sportscaster. 

Schmit spent 20 of his 21 years in 

broadcast news at KTSP Channel 5 in 

Minneapolis/St. Paul as a sportscaster, 

and the last year as news anchor. 

He describes doing the sports as his 

“dream job,” covering Superbowls 

and Finals Fours. However, he realized 

he was missing moments, family 

moments, and that he needed a 

change. Petters Media Group was 

formed to connect the companies 

and offerings within the companies 

of Petters Group as well as to outside 

customers. Tom Petters wanted 

Schmit to be a part of it and seeing a 

great opportunity, he came onboard. 

“The sky is the limit! There is no 

question that we have lots of venues to 

go after, from companies Petters 

Group owns to companies they have 

business relationships with to potentially 

new business partners. We want 

a ‘full court press’ on media and marketing, 

involving TV, internet, airlines 

and our own companies at Petters 

Group,” Schmit said. 

Schmit said that in the TV world 

you’ve got to be a salesman and it’s 

“all about relationships,” which deliver 

every time. 



RIDING THE WAVES 

Aaron Chang Promotes Local Surf Tournaments 

Aaron Chang is supporting the lifestyle of surfing by attending 

local surf competitions and photographing all the action at the 

events. In June, Chang attended the Folly Beach Wahine Classic 

in South Carolina, a surf tournament for wahines (women surfers) of all 

ages and skill levels. More than 90 female contestants entered and Chang 

captured memorable shots of the surfers during their best moments in 

the water. Following the event, Chang autographed posters and presented 

a special slide show called “Living in the Light” featuring his most 

prominent photographs from his travels. 

“Grassroots marketing opportunities such as the Folly Beach Wahine 

Classic are a means for Aaron Chang International to reach out to up and 

coming women surfers with hopes to organically build a following of 

dedicated surf enthusiasts,” Norm Zwail, President of Aaron Chang 

International said. He added, “The recent addition of Kristen Hamilton 

A VICTORY FOR PROJECT MANAGMENT :: 

CARRIE MASSINE, PROJECT OFFICE MANAGER for Petters Group 

Worldwide, received the “Project Manager of the Year” award at 

eProject, Inc.’s user conference in Seattle on October 26th. 

Massine was selected from a global group of nominees, all of 

whom are customers of eProject’s project management software. 

Her participation in the development of Petters Group’s 

“Streetwize Project Management” program was a key reason for her 


as Director of Marketing and PR 

will further expose the brand in the 

action sports world, as well as 

increase awareness to a broader fashion 

audience through her years of experience in 

the fitness and fashion industry.” 

Aaron Chang International, a portfolio company of Petters 

Group, is looking to host and attend more competitions like the 

Folly Beach Wahine Classic in the future to show support for the 

core surf culture and promote the company’s new collections of 

swimwear and lifestyle activewear. The Aaron Chang Spring 2007 

Collection, to debut in stores later this year, is being regarded as its 

finest to date with the recent launch of Fluid Soul, a surf inspired 

active lifestyle brand. 

selection. The program emphasizes practical just-in-time training 

linked to capabilities rather than heavy methodology training sometimes 

called for in traditional project management programs. 

Founded in 1997, eProject provides web-based project management 

software that allows geographically diverse managers and team members 

to share information and show progress against objectives. eProject is 

used by more than 475 customers worldwide including BASF, BP, Dow 

Chemical, Honeywell, RealNetworks and Petters Group Worldwide.


NEWS :: Mike Peterson 

Leads PCE European 

Ventures 

MIKE PETERSEN JOINED 

THE POLAROID 

CONSUMER ELECTRONICS 

(PCE) TEAM in the spring as 

Vice President of the 

European Product Group. His background 

is uniquely diverse; he first 

went into engineering and designed 

automobiles at Ford, including the 

Mustang Cobra, and spent weekends 

on the race track. After business 

school at the University of Michigan, 

Petersen went to Dell designing and 

marketing Dell notebooks. He moved 

back to Minnesota this spring to join 

PCE, working closely with Scott Hardy 

and Larry Harmer. 

Petersen is bullish on Polaroid’s 

exciting future and said that Polaroid 

is “truly leading the curve in the way 

global business is successfully run. 

We are able to act globally, yet respond 

locally, as we leverage the dynamic 

changes that are occurring daily.” He 

believes that PCE is a truly global company 

that is ahead of the game 

because their thin line strategy enables 

them to keep costs down, yet at the 

same time improve customer satisfaction. 

By building products in the territories 

where they are sold, it enables a 

reduction in product costs and 

improves customer delivery flexibility. 

Petersen recently moved his family to 

Vienna, Austria to be closer to our manufacturing 

facilities and spend more 

time with our European customers. He 

will be there for the next two to three 

years to manage our European product 

portfolio and lead part of our European 

sales organization. 

GUARANTEED ADS 

Transforming Digital Signage into a Mass Medium 

Anumber of major deployments in 

North America and Europe in the 

first three quarters of 2006 has 

solidified BroadSign’s position as a leading digital 

signage software provider. The BroadSign 

Suite software has been enhanced to give 

clients more versatile functionality and media 

power. It creates and operates large digital signage 

networks, manages media space inventory, 

and executes advertising, promotional and 

information campaigns. 

The release of BroadSign 

Suite 5.0 has companies around 

the world turning to BroadSign 

Suite for their advertising and 

signage needs. This summer the 

5.0 version finally resolved the 

advertising industry’s concerns 

over accountability in digital 

signage, promoting it into the 

same class of efficiency as online marketing. 

The latest company to sign up with 

BroadSign Suite is Netherlands’ largest instore 

network, operated by POSTV, which 

signed on early this year. Neo Advertising is 

using BroadSign’s software to run its Swiss 

retail networks and is expanding into the 

Spanish and German markets. The Hess 

Petroleum gas station network, operated by 

DynaTek Media, is deploying it to multiple 

locations in Florida, with the aim of ensuring 

1,000 sites are online by the end of 2007. 

Manhattan-based NightVision Network LLC 

has replaced its software with BroadSign Suite 

as part of a nationwide expansion into premier 

nightclubs and bars. PlayNetwork has 

marked its move into the digital signage field, 

unveiling a BroadSign-powered digital video 

wall at the brand new Playboy Club in Las 

Vegas. Other high-profile networks are to be 

announced soon. Intellimats, LLC has started 

a pilot program to test its network of innovative 

digital display mats in 10 Source by 

Circuit City stores in Canada. 

“In televison broadcasting, the stations 

can only guarantee the signal left the transmitter. 

It is very expensive to determine 

which televisions were on during a specific 

commercial. We can now guarantee not only 

that the ad was scheduled and uploaded to 

the playback device, but also that the screen 

was on and showed the right content,” Brian 

Dusho, EVP Sales and Marketing of BroadSign 

International said. “This gives the industry 

unprecedented accountability and eliminates 

any debates about what digital signage networks 

should bill advertisers.” 

The latest edition of the software was 

deployed remotely and seamlessly from the 

Network Operations Center in Montreal. One 

of the key features is how it facilitates measurement 

of sales uplift resulting from ad campaigns, 

so retailers can analyze detailed play 

logs against the point-of-sale data. BroadSign 

is a portfolio company of Petters Group. 



MAKING WI-FI WAVES 

Soniqcast To Reveal New Products BY ANN KIEREN 

As the Wi-Fi technology industry catapults 

forward, Soniqcast is making sure they 

maintain a competitive edge with their 

products as they collaborate with Fortune 100 

companies to create a never-before-seen technologies 

for the marketplace. 

They have created a product with wi-fiWi-Fi 

technology, enabling direct-to-device download of 

audio and video content to portable MP3 products. 

The product also features Bluetooth technology, 

enabling users to listen to audio with wireless 

headsets or transmit audio to an automotive 

receiver stereo without wires. 

The SoniqCast’s customer, a Fortune 100 

wireless technology company has also been very 

involved in developing designs and content partners 

for the product and technology. 

In fact, Soniqcast’s customer has made, a 

deal with a content provider-another Fortune 

100 media company-has been made to allow 

users to discover new music on their device 

based on their personal music preferences. A 

monthly subscription will enable users to listen 

to 2 million songs, choose their favorites, and 

use the device to search for more music similar 

to those songs. Kurt Thielen, Soniqcast CEO, 

said, “This will completely enhance the music 

discovery process. The technology will continue 

pushing music to your device based on your 

preferences, and you can sort the music and put 

it into any playlist you desire, without the help 

of a computer.” 


The new device will have a soft launch the 1st 

quarter of 2007 to get the product into the hands 

of the press and receive industry reviews. Thielen 

said, “This is a huge opportunity for Soniqcast, 

with the potential to generate 100,000 of units of 

sale per year, and the possibility of selling 

1,000,000 down the road.” 

Soniqcast is also working with Polaroid to 

develop a next generation portable media player 

that enables the consumer to watch movies “on the 

go”. The device will be similar to a portable DVD 

player, without the DVD, and also will be much 

smaller and lighter than a portable DVD player, 

with the ability to store much more content. The 

two companies are working to develop a product 

line with screens that will range from 2.8 inches all 

the way up to 10 inches. 

Soniqcast is working with a number of content 

providers to find content for their devices. 

They are also working with Polaroid to provide 

unique value added integration capabilities 

between their products so that the Soniqcast’s 

product can work seamlessly with Polaroid’s 

other products. The objective between the two 

companies is to develop a very easy to use 

product that enables consumers to leverage free 

digital content on their device. Thielen said, 

“The existing synergies between Soniqcast and 

Polaroid, and the fact that they have similar 

objectives, provides a very good opportunity 

for the two companies to leverage on Petters 

Group’s investments.” 

MOVE OVER 

HAMMER 

AND NAILS :: 

Element 

Electronics 

Debuts at 

Home Depot 

ELEMENT ELECTRONICS is hitting 

Home Depot store shelves with a couple 

of hot products just in time to kick 

off the 4th quarter holiday season. 

Element Electronics, a portfolio company 

of Petters Consumer Brands, is 

introducing an LCD TV and portable 

DVD player at select Home Depot 

locations across the country. 

“As Home Depot plans for the holiday 

selling season, it’s looking to 

Petters Consumer Brands for a broader, 

deeper product assortment. 

Element Electronics is the answer,” Jim 

Koestler, VP Products said. The PDZ- 

081E, a new 8” portable DVD player 

with red exterior, and the FLX-3202, a 

32” high definition widescreen LCD TV, 

are sure to turn the heads of Home 

Depot customers with their dramatically 

clear picture and bold stereo sound. 

Scott Hardy, Executive Vice 

President of Petters Consumer Brand’s 

Product Group said, “In preparation 

for Black Friday and the holiday season, 

Home Depot will have the shelves 

stocked with Element Electronics 

branded products because of their 

sleek designs, impressive specs, 

superb usability, and hot price points. 

Although Element Electronics is new to 

consumers, we are confident that 

introducing this brand before the holidays 

will bring significant awareness 

and recognition.” 

More information on Element 

Electronics can be found at www.elementelectronics.com.

EXTENDING THEIR REACH 

uBid.com Extends its Reach with SkyAuction.com, uBidShopper, and Bidville.com BY ANN KIEREN 

UBid Holdings, Inc. announced a partnership 

in May with SkyAuction.com, 

providing new travel auction and sales 

deals. The travel services offered through this 

partnership are unique because of the uBid.com 

platform, which has proven to provide exceptional 

value for consumers in other product categories. 

Both companies offer a significant competitive 

advantage compared to other popular 

online travel retailers such as Orbitz or Expedia, 

which offer auction formats. 

Robert Tomlinson, Jr., CEO of uBid.com 

said, “We are pleased to announce a partnership 

with SkyAuction.com that will enhance our customer’s 

experience by offering quality auctionrelated 

travel vacations and packages in addition 

to our other offerings.” 

The uBid.com-SkyAuction.com partnership 

will offer “Bid On” or “Buy Now” airline tickets, 

hotel rooms, tours, cruises, and all-inclusive 


vacations. The new partnership will offer 

unprecedented deals on leading airlines, hotels, 

resorts, and cruise lines, bringing customers 

brands they know and trust, while offering the 

most amazing travel bargains available on the 

internet. 

uBid has not stopped there, launching 

uBidShopper with SmartShopper.com. The 

new uBidShopper is a downloadable, comparison 

shopping software service designed for 

uBid.com customers. The software is free to use 

and is based on SmartShopper.com’s proprietary 

comparison shopping tool. 

When users search for products or new travel 

deals online, the uBidShopper tool conveniently 

appears in a separate browser pane with a list 

of relevant offers from uBid.com’s related product 

categories. If an item is not available from 

uBid.com, the tool uses SmartShopper.com’s 

technology to scour thousands of other online 

Polaroid Puts GPS on its Radar 5.6” LCD PREMIERES 

merchants and present a broad selection of product, 

travel and merchant information. 

The final move by uBid.com, a public 

company in which Petters Group invests, 

was to strengthen their position with the 

purchase of Bidville, Inc.’s key assets in 

order to expand uBid.com’s customer base 

and technology platform. The purchase of 

the online auction company’s assets 

includes Bidville’s customer file, brand 

name, URL and related online auction 

technologies. Tomlinson said, “Bidville’s 

consumer-to-consumer platform is complimentary 

to uBid.com’s current business-toconsumer 

and business-to-business marketplace. 

It not only provides us with a 

new marketplace to expand our business 

but it also represents a great opportunity to 

cross-sell our current business to new customer 

prospects.” 

WITH THE MARKET FOR GPS (Global Positioning Satellite) growing 

faster than ever, Polaroid is cashing in by introducing its own GPS. 

A portable Polaroid GPS with 5.6” LCD and a built-in DVD player has 

already debuted at Target, and will soon appear at three more stores: 

Sam’s Club, Wal-Mart and CircuitCity.com. 

GPS uses satellites in the Earth’s orbit to pinpoint your location to 

within ten feet. With built-in maps and sophisticated routing software, the 

Polaroid GPS shows you the fastest route to get where you’re going, even 

offering voice prompts to tell you when and where to turn. Polaroid GPS 

units will also offer millions of points of interest including restaurants, airports, 

gas stations, hotels and more. 

Carl Alleman, Product Manager for GPS said, “The entire GPS category 

has more than doubled in the past year and I’m optimistic we will also 

Destinator MGM-0550 

succeed. Even with skyrocketing gas prices, people continue to drive more 

than ever which in turn drives the need for a unit that keeps them pointed 

in the right direction.” Alleman said this unit should be a compelling niche play because it has a large, bright LCD screen and a built-in DVD player. 

“Our 2-in-1 GPS/DVD not only keeps customers pointed in the right direction, it keeps passengers entertained. That should make long trips 

for road-weary families a lot more fun,” Alleman said. His team is already making plans for additional GPS units that are sleeker, 

smaller and have even more features for 2007. One unit on the drawing board will even include voice command technology. That unit should 

find its way to store shelves in the near future. 



ID PLEASE 

Fidelica Develops Biometric Badge 

As airports work to satisfy the security 

expectations of its customers, employers 

and policy makers, biometrics is rapidly 

becoming the most practical and ubiquitous 

authentication method for conclusive identity verification. 

Unisys Corporation has selected Fidelica 

Microsystems, Inc. and Abeo Corporation to 

deliver a biometric badge for their Wireless 

Personal Identification Credential project. This 

project, part of the Transportation Security 

Administration’s sponsored Airport Access 

Control Pilot Program (AACPP), will be conducted 

at the Washington Dulles International Airport. 

CHAT IT UP :: YFly Adds Celebrity Chats to Website 

YFLY.COM CO-FOUNDERS DREW LEVIN and 

Danny Perkins re-launched their new and 

improved social networking site Oct. 1st. 

Partnering with singer/celebrity Nick Lachey, 

they created a site for teenagers to provide 

users with the most entertaining networking 

experience available online. This puts users in 

the prime position to socialize with their 

favorite celebrities all on a secure platform. 

“We took a good look at our competition of 

MySpace and Facebook and knew we could 

raise the bar for online networking. We focused 

our attention in 3 areas: making the site fast 

and easy to use; developing entertaining fea- 


The contract is for the evaluation of technologies 

that could mitigate security vulnerabilities 

at airports. The AACPP will 

allow Unisys to identify the operational 

benefits achievable through increased 

use of biometrics, surveillance and other 

security measures. 

This project will evaluate and demonstrate 

a wireless credential that would 

be used to verify the identities of truck 

drivers bringing loose cargo to an air 

cargo warehouse. “Conclusive identification 

of registered shippers is critical to 

transportation security,” Robert Allen, 

Vice President of Business Development 

of Fidelica Microsystems said. “Our fingerprint 

imaging technology was 

designed to enable biometric authentication in 

credentials as thin as a credit card.” 

SpringWorks, a division of Petters Group 

invests in Fidelica whose fingerprint imaging 

devices have been considered by the TSA for 

their unique attributes which facilitate personal 

biometrics privacy as well as enable biometric 

authentication deployments which take advantage 

of investments already made. 

AACPP is overseen by TSA’s Office of the 

Chief Information Officer. The WPIC project is 

in the final stages of its development and is 

scheduled to be demonstrated in the fall of 2006. 

tures; and delivering the ultimate connection 

point between real athletes, actors, and musicians 

to their fans,” Perkins said. 

YFly, a portfolio company of Petters Group 

based in Los Angeles, feels both the celebrities 

and Generation Y users benefit from the platform. 

The fans on the site know they are not 

interacting with an imposter and the celebrities 

are able to update them from a personal level, 

dispelling tabloid rumors and giving a behind 

the scenes look at their lives. “The opportunity 

for celebrities to break their own news and get 

direct feedback from their fans is extremely 

valuable,” Lachey said. 


NEWS :: Graeme Ogle 

Oversees 

Polaroid 

Eyewear 

POLAROID HAS 

WELCOMED 

GRAEME OGLE to 

the team as the new Human Resources 

Senior Account Manager for Polaroid 

Worldwide Eyewear. A new position for 

Polaroid Eyewear, Ogle was brought in to 

partner with the Eyewear Leadership, 

where he will continue to develop the 

Eyewear culture, drive change and 

ensure they have the right people, in the 

right jobs, in the right structure. He will 

also be working with Polaroid Consumer 

Electronics in Europe to expand the business 

development capacity to firmly 

establish themselves as an important 

player in the European consumer 

electronics marketplace. 

Ogle is strongly suited to lead the HR 

function and ensure Human Resources 

is well positioned to support these growing 

businesses. He has extensive experience 

in business partnerships, employee 

relations, performance management and 

compensation and benefits. A graduate 

of the Strathclyde Business School in 

the UK with a BA (Honors) in Industrial 

Relations, he is a member of the Charted 

Institute of Personnel and Development 

since 1996. Previous positions include 

working as a Recruitment Consultant for 

Melville Craig and serving as HR 

Manager for CIGNA International, 

European Region. 

At CIGNA, he was the Business Partner 

for two Pan-European businesses and 

partnered with CIGNA’s shared service 

functions, including actuarial, IT, legal 

and finance. “It was a wonderful experience 

and gave me the opportunity to significantly 

expand my professional knowledge 

and personal development, which I 

hope to be able to apply and continue to 

develop within Polaroid,” Ogle said.

ET CETERA ::Values Message: CARING 

THIS YEAR WAS THE FIRST YEAR FOR PETTERS GROUP to offer 

internships abroad. Jay Dillon jumped at the chance to stay in China to 

work for Petters International after his semester 

abroad program through NYU ended. 

His assignment was to work at their 

Wanlida factory in Xiamen. 

Jay went out to dinner the 

first night of the move with the 

Vice President of Wanlida before 

heading back to his apartment in 

Xiamen where he was living alone. 

Feeling ill the next day, Jay went into 

work hoping that it would pass. After 

two days, the symptoms were getting worse 

so he decided he had to call Whitney Clayton, Vice President of 

Production for Petters International. The two had never even met, but 

Whitney decided to board a plane to Xiamen to help Jay. 

At the hospital, it was apparent Jay would not receive the care he 

TIME TO SHOOT HOOPS :: 

Brax Capital Group forms 

Strategic Partnership with 

American Basketball Association 

BRAX CAPITAL GROUP, an investment banking and financial 

consulting firm based in Beverly Hills, CA and founded by 

AJ Discala and Tom Petters, has formed a strategic partnership 

with the American Basketball Association in order to 

maximize the potential of ABA licensing, entertainment, 

leasing, Internet and other ABA strategic initiatives. Brax 

Capital Group has additionally reserved five ABA markets 

and will operate its own teams, as well as work at the 

corporate levels. 

AJ Discala, CEO and Co-Founder of Brax Capital Group, 

has extensive industry connections and business relationships 

that he will use. The Brax-ABA partnership is the first 

of many deals in Brax Capital Group’s pipeline as they focus 

on creating market leaders through their role as a valueadded 

investor, providing strategic advisory, financial expertise 

as well as execution guidance and operational oversight 

to their clients. 

“We believe in the ABA,” AJ Discala said. “Professional 

sports have priced themselves out of middle America. The 

ABA offers wonderful entertainment at a fraction of the cost 

of a professional game.” 

“The ABA is excited to have AJ Discala and Brax Capital 

Group as our new strategic partners,” Joe Newman, ABA 

CEO said. “With their support, we can maximize the potential 

of the league with exciting new initiatives all with the 

goal of offering exciting, fast-paced sports and quality entertainment 

for fans and families at affordable prices.” 

needed as the doctors gave him bug 

repellent for their first diagnosis of 

malaria. The pair took off for Hong 

Kong to receive better treatment. 

“Whitney was the greatest; he stayed 

with me the whole time, going to the 

hospital in Hong Kong with me everyday 

for tests,” Jay said. He now attests to 

the strong friendship that was formed 

from unlikely circumstances. 

After four days and continuous 

concerned calls from Tom Petters and 

Patty Hamm, they decided Jay needed 

to get home. 

Once home, Jay got a proper diagnosis 

of Salmonella and Giardia and was 

treated accordingly. He rounded out his 

summer internship in the Petters Group 

finance department in Minnetonka, safe 

from food borne bacteria. 

DESIGNED TO SELL :: 

MinnesotaBusiness 

Wins Top Awards 

Jay Dillon on one of his many 

adventures around China before 

coming home. 

METROPOLITAN MEDIA GROUP 

has been honored by two organizations 

with top awards. The Alliance of Area 

Business Publications (AABP) at its annual national awards 

to newspapers and magazine business periodicals gave the 

Gold Award in the design category for “Best Feature Layout” 

for MinnesotaBusiness Magazine. There were 680 entries from a 

record-breaking 61 publications in 28 categories for the 2006 

Alliance Editorial Excellence Awards. 

At the Minnesota Magazine and Publishers Association awards 

Metropolitan Media Group took home 12 awards for their lifestyle 

publications and Minnesota Business Magazine. As a non-profit 

trade association, the MMPA is a forum for the top companies 

involved in the Minnesota magazine publishing arena. 

“I’m thrilled to see MinnesotaBusiness Magazine given these 

awards from the AABP and MMPA. It’s a testament to the level 

of talent and the constant dedication that our creative graphic 

design team puts forth every day,” Kenan Aksoz, Publisher said. 

“Over the last few years, they’ve been making their mark by being 

recognized on both national and local levels.” 

Metropolitan Media Group has used a strategic investment 

from Petters Group to continue expansion of their 18 

publications and other products in Minnesota and beyond 

which include Eden Prairie, Lake Minnetonka, Edina and 

Woodbury Magazines as well as their direct mail division. 



¡HOLA OSTER, 

WELCOME TO MEXICO! :: 

Petters Consumer Brands 

Launches Oster Major 

Appliances in Mexico 

PETTERS CONSUMER BRANDS (PCB) 

launched Oster major appliances in 

Mexico this fall, with plans to expand into 

the remainder of Latin America in 2007. 

The Mexico launch of Oster branded 

major appliances follows the successful 

launch of Sunbeam major appliances in 

the United States. Like Sunbeam, the 

Oster brand is licensed from Jarden 

Consumer Solutions. 

According to Annie Karsh, PCB New 

Product Analyst, their new line of Oster 

major appliances is bound to be a successful 

extension of this Tier I brand. 

“Oster major appliances will uphold the 

highly regarded brand image this small 

appliance line has already established in 

Mexico,” Karsh said. Currently, Oster’s line 

of small appliances includes categories 

such as blenders, stand mixers, toasters, 

coffeemakers, and many more. 

Because Oster is already a leader in 

small appliance brands in Mexico, PCB 

chose to use Oster for its major appliances 

rather than Sunbeam, which 

already has an expanding major appliance 

line in the United States. “We are bringing 

a great value proposition with a wellknown 

brand to the market,” Geoff Pollak, 

COO of PCB said. “Oster major appliances 

will result in accelerated growth for 

both Petters Consumer Brands and our 

business partners in Mexico.” 

Phase I of the Oster Mexico launch will 

include a full line of 20” and 30” gas 

ranges, full-size refrigerators, and countertop 

microwaves. PCB also has its sights 

set on future Oster Mexico product lines 

in laundry and air conditioning. 

With a sparkling product line and wellrecognized 

name, Oster major appliances 

are sure to find themselves in homes all 

over Mexico. 



LiTESTAR’s Away from the Competition 

IPS REPRESENTS THE FUTURE IN MICRO-BATTERY SOLUTIONS 

Since its conception in 2001, Infinite Power 

Solutions, Inc. (IPS) has focused on commercializing 

its thin-film battery (TFB) 

technology. Now, backed by a venture technology 

company, Dr. Bernd Neudecker, CTO of IPS, and 

his team of battery experts are continuing to perfect 

the technology in order to mass-produce TFBs 

on a thin, inexpensive, flexible substrate, which no 

one has been able to do until now. A capital raise 

of $34.7 million completed in Aug. is primarily to 

build new facilities for high-volume manufacturing. 

The machinery to produce the substrate is 

being produced by Symmorphix. IPS and 

Symmorphix are both investments of 

SpringWorks, a Petters Group company. 

Alex Wong of the D.E. Shaw group, one of the 

investment companies in IPS, said, “Infinite Power 

Solutions has clearly shown their capability to 

manufacture a new generation of powerful, ultrathin, 

micro-batteries to meet a growing demand 

for smaller, flexible and rechargeable power 

sources.” Bob Metcalfe of Polaris, another investor 

in the company, said, “We’ve seen many start-ups 

with new battery chemistries. The IPS solid-state 

TFB technology, with its postage-stamp size, 

extreme durability, high power, flexibility, and virtually 

infinite rechargeability, is truly remarkable. 

In 2007, a projected 10 billion embedded microcontrollers 

will be shipped worldwide in a vast 

variety of applications. Many new applications of 

micro-controllers, sensors, and tags will be 

enabled by IPS’ rechargeable TFBs. 

Produced under its LiTE*STAR brand, 

IPS batteries serve applications within the military, 

aerospace, smart card, active RFID, 

implantable medical device, embedded microcontroller 

and wireless sensor markets. The IPS 

rechargeable thin-film battery technology provides 

industry-leading performance, yet remains 

safe and environmentally friendly.

COOLING AIR, ONE ROOM AT A TIME :: 

Holmes, Bionaire added to the PCB mix 

THIS SUMMER PETTERS CONSUMER BRANDS (PCB) launched 

three Sunbeam room air conditioners at Circuit City just in time 

for a nationwide heat wave. The air conditioners - a 5,000 BTU 

manual room air conditioner, a 6,000 BTU electronic room air 

conditioner, and a 10,000 BTU electronic room air conditioner - 

sold nearly 10,000 units. They all have built-in air filters and were 

a great introduction to PCB’s new room air business. 

Since Sunbeam air conditioners have been successful with 

Circuit City, PCB is gearing up to launch two new brands of air 

conditioners: Holmes and Bionaire. These brands, licensed 

through Jarden Consumer Solutions like Sunbeam, will provide a 

broader spectrum of air conditioning solutions for a larger 

demographic. “PCB’s strategy of using three brands will allow 

the company to expand across the market,” Annie Karsh, PCB 

New Product Analyst said. “PCB will have air conditioners to fit 

the needs of each target audience.” 

The Holmes brand, already a leader in the home environment 

industry, will serve as PCB’s mid-level air conditioners. They will also 

YESVIDEO PARTNERS WITH KEY RETAILERS :: 

Brooks Eckerd Pharmacy and FujiFilm Portugal Sign On 

YesVideo has expanded distribution of 

the YesDVD product line by offering it 

through all Brooks Eckerd Pharmacies 

in the United States and through FujiFilm 

Disk and case for Brooks Eckerd DVDs 

Portugal LCD. Brooks Eckerd Pharmacies, a 

large drugstore chain primarily located in the 

Eastern and Southeastern US, serves millions 

of customers each week through their 1,000 

retail locations. FujiFilm Portugal LCD is a 

large wholesale photofinishing company 

located in Porto, Portugal that provides 

photo products and services to Portuguese 

consumers through such retail locations 

as Fnac, Auchan, and Worten. 

“Consumers are quickly learning 

that YesDVD technology 

offers superior viewing quality, 

easy access to the content 

through indexed chapters, 

and enhanced preservation 

due to the durability 

of DVDs,” Greg Ayres, COO of 

YesVideo said. “Both Brooks 

Eckerd and FujiFilm Portugal are 

taking advantage of this new digital service 

opportunity as mainstream consumers are 

beginning to demand a DVD solution that is 

launch a line of dehumidifiers under the Holmes brand. Currently, 

Holmes’s line includes heaters, humidifiers, fans, air purification 

systems, and lighting. Holmes air conditioners will attract customers 

looking for a reliable room air conditioner with greater air flow. 

Bionaire, which currently carries a product line of air purification 

systems, dehumidifiers, humidifiers, fans, and heaters, will 

be PCB’s high-end brand of air conditioners. “Bionaire is a brand 

that redefines home comfort through innovative solutions, and 

will attract families seeking high performance, comfort, and style. 

Karsh said the target market places a greater importance on a 

clean-air environment, as Bionaire air conditioners are equipped 

with HEPA filters built to purify and cool air simultaneously. 

Bionaire units will also be EnergyStar ® compliant, attracting 

environmentally-conscious customers. 

PCB’s investment to enlarge and enhance the appliance business 

is indeed paying off with air conditioners. With three brands 

aimed at different demographics, each brand is sure to be a hit – 

cooling homes, one room at a time. 

both convenient and affordable.” 

To capitalize on this promising market, 

YesVideo is continuing to expand their 

distribution network with the photofinishing 

industry. The photofinishing industry 

and photo dealers have established a trusting 

relationship with consumers over the 

years by processing billions of rolls of film. 

Consumers now have a practical solution 

for transforming videotapes to DVDs by 

simply dropping their camcorder tapes 

and movie reels at these photo dealers for 

processing to YesDVD. SpringWorks, division 

of Petters Group, invests in YesVideo 

because it believes this approach addresses 

a majority of the video market. 

Globally, our society and economy are 

“Going Digital” with almost everything. 

YesVideo and their strong network of international 

photo dealers provide the most 

suitable way to transform old and new 

memories into a better way to view and 

share: DVD. 


:: 

GALLERY john t. petters foundation 

A Successful Opening Night 

Legacy Gala Raises Over One Million Dollars 

Aspecial night of glitz, glamour and fun greeted over eight hundred 

friends, family, and business associates of Petters Group 

Worldwide who gathered to raise funds for the John T. Petters 

Foundation on Aug. 12th, at the Hilton Hotel in Minneapolis. The Legacy 

Gala’s “A Night in Las Vegas” was the inaugural fundraiser for the 

Foundation to raise money for scholarships that assist deserving students 

to study abroad. As the guests entered the event, they felt like they had left 

the Hilton Hotel in Minneapolis, Minn. and entered a Las Vegas nightclub, 

1 2 

3 4 


complete with VIP seating and a stage show. The event was no doubt a 

who’s who of Minneapolis, but it also brought in guests from as far away 

as China. The sponsor donations and silent and live auctions brought in 

over $1.2 million which will be used to expand the scholarship program. 

The 2007 Legacy Gala planning is already underway so watch the Petters 

Group magazine and the johntpettersfoundation.org website for more 

details. More pictures and video from the 2006 event can currently be seen 

on the website. PG 

[1] The centerpiece of the silent auction 

area, the Lexus Bar, featured one of the 

premiere live auction items, a 2 year lease 

on a Lexus SC430 convertible. [2] Mike 

O’Shaughnessy, Polaroid; Tom Petters; 

Dean Vlahos, Redstone; Mike Wood, 

Headquarter Marketing [3] Four elaborately 

dressed showgirls helped guests feel like 

they had just stepped into a Las Vegas 

show. [4] Beautifully decorated VIP tables 

illuminated the room

5 

BY THE NUMBERS :: 

Attending Guests: 823 

Auction Items: 260 

Money Raised: $1,295,167 

TITLE SPONSORS 

$50,000 

• Lancelot Investment 

Management 

• Bob & Janet Sabes 

• Dean & Michelle 

Vlahos/Redstone American Grill 

• Polaroid Consumer Electronics 

$25,000 

• Camille Chee-Awai 

• Deanna & Allen Munson 

• Fredrikson & Byron, P.A. 

• Michael & Lisa O’Shaughnessy 

• Circuit City 

• Proview International 

Holdings Limited 

• Bill Dunlap 

• Steven & Lisa Ratliff 

• Jack Young & Steven Young 

• Ted & Pamala Deikel 

• Harris-Homeyer Company 

$10,000 

• Piper Jaffray 

• GMAC Commercial Finance/ 

Andrew Moser 

• Zink/Bob White 

• Brad & Mary Dennis 

• Minnesota Timberwolves 

• Novak & Nelson 

• Larry & Lynn Raymond 

• Larry & Toni Reynolds 

• Neal, Gerber, Eisenberg 

• The Traub Family 

• Stuart & Marie Cohen 

• The Waitt Family Foundation 

• Strategic, LLC 

• Crystal Capital 

• C.H. Robinson 

$5,000 

• Best Buy 

• space 150 

6 

7 

• Schlegel Horizon Foundation 

• David & Naomi Baer 

• CSM Corporation 

• Andcor Companies, Inc. 

• Flextronics 

• Cherry Tree 

• Jim Wehmhoff 

• CMO 

• ST Microelectronics 

• Universal Electronics Inc. 

• Mary Jeffries 

• Co-Rect Products Inc. 

• Rafiki Partners & Kes 

Air Technologies 

• Dorsey & Whitney LLP 

• Patty Hamm 

• Business Impact Group 

• Crown Bank 

• Coldwell Banker Burnet 

• Free Agent Consulting 

• Service Craft Logistics 

• Miami University 

• College of Saint Benedict/ 

St. John’s University 

[5] A high energy performance by The Rat Pack 

Revue set the mood for the program. [6] Jon 

McGaunn, Petters Hospitality and his wife Tam 

with comedian and headliner David Spade [7] 

Former Channel 5 news anchor Joe Schmit emceed 

the evening one week after coming to Petters Media 

Group. 

• Shyan & Partners 

• Steven Bennett 

• Strategic Talent Partners 

• Nazca Solutions 

• Almo Corporation 

INDIVIDUAL DONATIONS 

$50,000 

• Greg Bell & Inna Goldman 

$15,000 

• uBid 

$10,000 

• Acorn Capital Group 

$5,000 

• AJ Discala 

• Joe Carey 

• Dan Lagermeier 

• Harold & Ruth Roitenberg 

• Joe & Laura Schmit 

• John Morgan 

• Tom & Regina Hudson 

• Geoff & Gabrielle Pollak 


:: 

GALLERY john t. petters foundation 

GOOD MORNING TOM; 

WOW!!! WHAT AN EVENT!!! First time ever 1000 

people in attendance. Please notify the Hilton Hotel! 

Notify the Governor! Notify the World!! – Within four 

years the Metrodome will be needed to house “The 

John T. Petters Legacy Gala.” As you know, the first 

event you have is the toughest to produce. 

Seriously, Tom, I have been involved in producing 

large charitable functions for over 20 years and from 

my perspective, your first event was a huge success 

in every way possible. If I may, I will list all the positives 

in numerical order which I think made your 

event so spectacular. 

1. VOLUNTEERS: Magnificent job; theirs was truly a 

labor of love and it was so evident, just talking to 

them and watching them go about their duties as 

if they had been working together for years. And it 

was apparent how devoted they were to your cause. 

2. DECORATIONS: Unbelievable, absolutely 

spectacular. From the centerpieces to the silent 

auction room 

3. A NIGHT IN LAS VEGAS: The theme was very well 

done! The entertainment was superb, from the 

Rat Pack to David Spade. Oftentimes this type of 

theme can be overdone – but not in this case. 

4. FOOD: Great – really, so much better than 

expected at a hotel feeding 1000 people. Whoever 

planned your menu gets an extra pat on the back. 

5. SERVICE: The hotel staff did an excellent job of 

serving both hors d’oeuvres and dinner. They 

went about their tasks with the same zeal as 

your volunteers. 

Now Tom, for the negatives; also in numerical order: 

1. 

2. 

3. 

Well, forgive me if I can’t think of a one. 

Tom, the John T. Petters Foundation is a great 

cause and I’m sure John had the best seat in the 

house, looking down on all of us and saying “What 

a wonderful, wonderful family I have!” 

WARM PERSONAL REGARDS, 

RAYMOND E. IMPERIAL 

CHAIRMAN EXCALIBUR CLASSIC 


8 

9 

[8] Tom Petters and Jamie Hagan, 

John’s parents, and Jenny Petters, 

John’s sister, took a moment to 

remind guests what the night was all 

about. [9] Ted Deikel; Mike Hatch, 

Tom Petters; Wendell Anderson, 

former Governor of Minnesota 

[10] Geoff Pollak, Petters Consumer 

Brands and wife Gabby; Lorrie 

Parent, Polaroid Consumer 

Electronics; Legacy Gala Guest, 

Vanessa Gollin 

10

REDSTONE PARTIES WITH PURPOSE ::Grand Opening 

VIP Party Proceeds Benefit the Foundation 

1 

2 

3 

More Students Traveling Abroad 

REDSTONE AMERICAN BAR AND GRILL brought its fun 

atmosphere and excellent cuisine to a new location in 

Marlton, New Jersey on Sept. 9th. The guests celebrated with 

much zeal as they enjoyed a VIP party that had a special 

twist. Owners Dean and Michelle Vlahos dedicated the opening 

night liquor proceeds to the John T. Petters Foundation. 

The evening was a special tribute to John himself, recalling 

his fun personality and love of life. They also dedicated the 

back patio bar to John with a plaque at the entrance reading 

“John Boy’s Bar”. 

Tom Petters, as an investor in Redstone 

and more importantly a close friend to the 

Vlahos family, flew to Philadelphia with members 

of the Petters Group team to celebrate the 

expansion of the restaurant. The evening 

brought in over $5,000 for the Foundation. 

Dean Vlahos, one of the Foundation’s largest 

donors, said, “I wish it could have been 

more,” once again showcasing his support for 

the cause. The lucky student who receives that 

scholarship will be able to tell him, “It was 

enough to change my life.” [1] David Baer & 

Deanna Munson [2] Dean Vlahos, Michelle Vlahos, 

Tom Petters, and Jenny Petters [3] Tom Petters, Mike 

Wood, Dean Vlahos, Guest 

Rollins College in Winter Park, Florida and Wallin Scholars, based in Minneapolis, are two new 

partners for the John T. Petters Foundation’s 2006 round of scholarships. Rollins is a private liberal 

arts college that has ties to Petters Group through its many other educational initiatives. 

Wallin Scholars encourages and supports deserving students throughout the greater 

Minneapolis area who might not otherwise attend or graduate from college. They work closely 

with high school guidance counselors who recognize students with great academic ability and 

drive but lack the support to get to the next step. 

In addition to these new partners, the Foundation will be awarding up to 10 open scholarships 

in 2006 to students who are traveling on programs through any accredited college or university in 

the state of Minnesota. This new step acts as a way to enhance the name recognition of the 

Foundation in Minnesota but more importantly impact the lives of students across this state. 

Foundation 

Mission 

The John T. Petters 

Foundation awards 

scholarships on a 

need-basis to students 

who display 

John’s characters of 

leadership, motivation, and the overall 

passion to study international business. 

St. Olaf Memorializes 

John Petters 

THE ST. OLAF CATHOLIC CHURCH 

in downtown Minneapolis has dedicated 

the altar cross, baptismal font 

and other sacramentals of the 

church’s chapel room to the life of 

John T. Petters. Donated by Bill 

Dunlap, John’s memory has been 

memorialized with a plaque containing 

John’s name and an Irish prayer. 


:: 

GALLERY charitable giving gallery 

At a special ceremony in New York’s 

General Motors Plaza, in support of 

Breast Cancer Awareness Month, Mike 

O’Shaughnessy of Polaroid presented a check for 

$60,000 to Elizabeth Hurley, spokesperson for 

The Breast Cancer Research Foundation (BCRF). 

Tom Petters surprised the crowd when he took a pen, crossed out the $60,000 

and made it $120,000, with the matching donation coming from Tom Petters. 

The event included Elizabeth Hurley and The BCRF lighting the General 

Motors Plaza, the Pulitzer Fountain and Bergdorf Goodman lanterns pink in 

recognition of October as Breast Cancer Awareness Month. In addition, 

Polaroid launched a line of pink digital cameras to increase awareness and 

benefit breast cancer research funded by BCRF. These pink cameras debuted 

at Target, Circuit City, and Wal-Mart in October and early November. 

Polaroid’s partnership with The BCRF is only natural given the company’s 

long-standing relationship with women and families. This is the initial step 

on a journey to support the valuable work of The BCRF to prevent and cure 

breast cancer. PG 

Polaroid Sponsors Trent 

Tucker Celebrity Golf & 

Poker Tournament 

THE 8TH ANNUAL TRENT TUCKER 

CELEBRITY GOLF & POKER 

TOURNAMENT, presented by Polaroid 

and Petters Group Worldwide, attracted 

some of the biggest sports and poker 

legends including Michael Jordan, Scott 

Pippen and Phil Ivey. Along with the 

Polaroid/Petters Group Worldwide 

sponsorship of $100,000, the event 

raised over $300,000 to benefit the 

Trent Tucker Youth Program. Founded in 

2001, the Trent Tucker Youth Program 

works one-on-one with at-risk Twin 

Cities middle school students to help 

them develop good character and leadership 

skills and to build self-respect. 


Polaroid and Petters Group 

Worldwide Donate $120,000 

to Fund Cancer Research 

(l) Elizabeth Hurley displays the Polaroid “Pink” camera, developed to 

bring awareness to breast cancer research. (r) Elizabeth Hurley received 

the Polaroid donation from Mike O’Shaughnessy and Tom Petters. 

JOE SCHMIT CELEBRITY GOLF EVENT RAISES MONEY FOR BBBS 

THERE WERE NO 

GOLDEN BEAR, Walrus 

or Tiger sightings at the 

15th annual Joe Schmit 

Celebrity Golf Event in 

June, but there were 

plenty of birdies and a 

few eagles for all animal 

and golf lovers. Petters 

Group Worldwide was 

once again a major 

sponsor of this event 

that raises money for Big 

Brothers Big Sisters of 

the Twin Cities. 

The three day event 

One of Petters Group’s foursomes (George Danko, Patty Hamm, 

Paul Traub & Rick Engels) 

included 700 people attending Joe’s Grand Party at the Minneapolis Convention Center. Then, 

over 375 golfers took part in the two-day event which had golfers testing their skills on two of 

Minnesota’s premier courses, Hazeltine National Golf Club and Bunker Hills. Hazeltine has 

hosted two US Opens, the PGA Championship and is a future sight of the Ryder Cup. 

This year’s event raised over $400,000. The event itself, after all expenses are paid, has 

raised over 3-million dollars for kids in need in our community. 

Joe has left broadcasting after 21 years to join the Petters Group team, but he still plans on 

holding his 16th annual event this spring.

One Foot In 

Front of the Other 

Polaroid Team Raises $25,000 

BY KATHY RADLEY 

Congratulations to Team Polaroid on another successful year of 

fundraising for the Jimmy Fund and Dana Farber Cancer Institute. 

Although pledge money is still coming in, it appears that Team 

Polaroid will exceed its goal of $25,000! The team of 24 walkers consisted of 

9 Polaroid employees, 5 former employees and 10 family members. 

Team Polaroid is grateful for the overwhelming support they received from employees, former 

employees, friends and family. In addition to sponsorships, the team received contributions 

from the Matching Gifts Program, corporate raffle, t-shirt sale at R5, bake sale and the land fund. 

The Team would also like to thank the Polaroid leadership team for participating in the fundraising 

events and enthusiastically cheering on the walkers. Everyone appreciated having Tom Beaudoin, 

CFO/COO of Polaroid, at the walk. Beaudoin was a speaker at the 3-mile Boston start and walked 

with his wife, Cheryl, and 1,200 others to the Copley finish line. He also participated in festivities at 

the Polaroid photography tent where 5,000 walkers received free instant photos. 

The event’s success was also due to the work of many volunteers. 55 volunteers helped 

on walk day – 16 at the Harvard medical quad and 39 at the Copley finish line. In addition, 

nearly 3,000 gift bags were prepared by a team of 15 volunteers prior to the event. 

Additional photos from the walk can be seen at http://corp.polaroid.com/pol_information/intcomm/photos/2006news/Slide_show_JFWalk.pps. 

HOOPS AROUND THE WORLD :: 

Howard Pulley Program 

Sends Students to Belgium 

(photos l to r) 

[1] Team Polaroid 

walkers Anne Slein 

and Bob Schrandt 

[2] Janet Cumming 

and Doug Stanley 

[3] Steve 

Karampalas, 

Theresa Flynn and 

Deb Whalen 

THE TOM PETTERS FAMILY FOUNDATION and 

Sabes Foundation were two large sponsors of the 

Howard Pulley Basketball Program again this year. 

The Sabes/Petters team, made up of students ages 15-18, 

finished 8-0 as they traveled throughout Europe this summer playing primarily 

against National Junior teams. 

The Howard Pulley Basketball Program is considered one of the top summer 

programs in the nation. This represented its 21st year of providing opportunities for a 

diverse group of deserving youth. 

“Our trip was very successful in more ways than just basketball,” Errol F. Carlstrom 

of the Howard Pulley Program said. “Our players stayed with local families and formed 

relationships that will last a lifetime.” 

To learn more about this program, visit their website at http://eteamz.active.com/howardpulley/index 

THANK YOU! :: 

Dear Mr. Petters, 

How thrilled I was to hear about the wonderful 

gift that is coming to The Breast 

Cancer Research Foundation from you in 

addition to the generous donation from 

Polaroid. We are delighted that you share 

our passion and drive to beat this disease. 

— EVELYN H. 

LAUDER, FOUNDER 

AND CHAIRMAN 

Dear Petters Group, 

With your support, we’re making a BIG difference 

for more kids in our community 

than ever before. Thanks for your important 

contribution for a brighter future for our 

Twin Cities area kids. BBBS couldn’t do it 

without you! 

— BIG BROTHERS 

BIG SISTERS 

Dear Mr. Petters, 

Thanks in part to your donation, we were 

able to raise over $14,000 for our BOLT 

program. We are fortunate to have Bill 

Mondale as an esteemed member of our 

Advisory Board. We pray God’s blessings 

and peace be with you always. 

—THE SALVATION ARMY 

Thank you for sharing Junior Achievement’s 

vision for tomorrow’s youth and recognizing 

the value of our far-reaching programs. 

— JUNIOR 

ACHIEVEMENT 

Dear Petters Group, 

On behalf of Bridging’s Annual Gala 

Celebration “Off to the Races,” we want to 

thank you for your generous donation. As 

of this date, we have netted over $143,000 

that will help purchase twin beds, build 

dressers, and procure other product that 

will help us serve 4,000 families annually. 

— BRIDGING 

Dear Petters Group Worldwide, 

Thank you very much for your generous 

auction gift to the Minnesota Zoo 

Foundation in support of the 2006 Beastly 

Ball. We cannot thank you enough for your 

partnership in this important effort! 

— MINNESOTA ZOO 


:: 

CONNECTING POINTS operational excellence 

Ihope you read the profile of Tom in the 

first issue of Petters Group magazine. If 

you did, you know that critical to the 

company’s successful growth has been an 

emphasis on being entrepreneurial and 

opportunistic and all that goes hand-inhand 

with those traits – being fast, responsive, 

innovative, agile, risk-tolerant and 

more. These are all attributes by which 

Petters Group will always want to be known. 

The success derived from these qualities 

has transformed the company dramatically. 

Petters Group today is a broadly diversified 

enterprise with significant ownership positions 

and, in some cases, operating responsibility, 

for major businesses in merchandising 

and sourcing, emerging technologies, 

hospitality, media and marketing and now 

aviation and capital management. 

Across this diverse group of businesses, 

a common trait is our customers’ expectation 

that we will be a reliable partner, a 

quality supplier and a company they can 


Simple Processes 

Mary Jeffries, Petters Group Worldwide President/COO 

PETTERS GROUP WORLDWIDE CORNERSTONES 

STRATEGY 

We use a focused business strategy 

making leveraged acquisitions in 

companies that generate superior 

investment returns 

OPERATIONAL 

EXCELLENCE 

Our infrastructure provides 

consistent delivery of a high level 

of performance and portfolio 

support with a focus on quality 

and continuous improvement 

count on to fulfill commitments consistently. 

To meet these expectations, we must be 

an operationally excellent business. In fact, 

being operationally excellent is part of what 

enables us to be fast, responsive, innovative 

and agile in bringing to bear on business 

opportunities and challenges our capabilities, 

services, talent, capital and other 

resources. This is particularly so as the 

scope and scale of our interests grow. 

That’s precisely why Operational 

Excellence is one of the four cornerstones 

that we have identified as fundamental to 

the way we will conduct business. 

Operational Excellence, joined with 

Strategy, Investment Process and 

Relationship Management create discipline, 

structure and operating principles that pro- 

INVESTMENT PROCESS 

We follow discplined 

investment processes 

in making and managing 

investments 

RELATIONSHIP 

MANAGEMENT 

We develop, grow and 

leverage superior relationships 

and networks to enhance our 

effectiveness in meeting 

strategic goals 

vide a platform for sustaining our entrepreneurial 

and opportunistic culture. 

Given our heritage, Tom’s vision, the 

kind of opportunities we seek and the kind 

of business leaders we align ourselves with, 

a bias for the entrepreneurial and opportunistic 

will always characterize Petters 

Group. A primary part of my job is using 

our four cornerstones to build an environment 

where that entrepreneurial and opportunistic 

spirit is nurtured, supported and 

sustained by good processes, systems and 

structures. I’m honored to have the opportunity 

to serve Petters Group as president 

and chief operating officer and look forward 

to working with everyone in the Petters 

Group family as we take the company to 

new levels of prosperity and growth. PG

30 :: PETTERSGROUP

MAKING A DIFFERENCE :: jim WEHMHOFF 

The Taxman Cometh 

Tax season for most CPAs is early in the year and is forgotten 

about by April 15th. For Jim Wehmhoff, EVP 

Corporate Taxes for Petters Group Worldwide, the tax 

season is year round. “By advising on the structuring of potential 

sales, purchases, investments or the development of a product, 

we are able to help determine the best approach from a tax structure 

standpoint,” Wehmhoff said. Doing this advance research for 

all the companies within the Petters Group portfolio is just one of 

the many tasks Wehmhoff and his assistant, Carol Hove, CPA, 

tackle each day in the Corporate Tax department. 

Handling the required income tax filings for all the partnerships, 

corporations, foundations, trusts and certain individuals 

also falls into their arena. We have four controlling entities - 

Petters Group Worldwide, Petters Company, Inc, Thomas 

Petters, Inc and Thomas J. Petters individually - 

and all the portfolio companies and investments 

fall into one of them. Keeping track of where 

they are and determining if they are strategically 

positioned in the best place is why Wehmhoff 

relies heavily upon proper communication. 

“Legal, finance and the executive team work very 

closely with us so we have a clear vision of what 

is coming next for the company,” he said. 

This was a different story when he came to Petters Group in 

2004. Wehmhoff was Co-Founder of a local CPA firm and, after 

30 years practicing public accounting, he retired. Tom Petters, 

having been a client since 1988, asked Wehmhoff to join Petters 

Group and form a corporate tax department for his organization. 

“When I first arrived, people were not aware of all the information 

I could provide to them, so they did not come to me with 

questions,” he said. After a few surprises people realized that the 

corporate tax structure was important to more than just the 

business they were working on, and the lines of communication 

started opening up. “It’s so easy to discuss projects with Jim,” 

Rick Engels, CFO for Petters Group said. “He has a vast knowledge 

of all the interworkings across all the investments and will 

often give you great insight into your project.” 

By advising on the structure of a purchase, sale or investment, 

our objective is to take full advantage of any tax attributes 

available to the company. Proper structuring the portfolio of 

Strategy and Vision 

WRITTEN BY ANDREA MILLER 

PHOTO BY TODD BUCHANAN 

companies and investments within the four controlling entities 

is how we strive to take advantage of research, investment, energy 

or foreign tax credits and/or loss carry forwards to offset 

potential profits and enhance the company’s cash flow. 

Wehmhoff explained that the Internal Revenue Code clearly 

states that it is everyone’s right to pay the lowest possible tax 

provided under the law. This is why advance research and strategizing 

becomes critical to all the companies. 

Wehmhoff and his assistant comprise the tax department for 

the Minnetonka office but work closely with the Polaroid tax 

team in Waltham. The Boston office is responsible for the foreign 

tax work, which is growing quickly, and the consumer electronics 

line. They combined their efforts for the filing of the consolidated 

return for Polaroid and its entities. “Jim’s knowledge of 

“Keeping the lines of communication 

open saves us all from surprises.” 

— JIM WEHMHOFF 

all the workings within the Petters Group investments has made 

the transition into one company much easier,” Tom Beaudoin, 

COO/CFO of Polaroid said. 

When asked why, after retiring from public accounting, he 

decided to come to work for Petters Group, Wehmhoff said, “I 

wanted to stay busy, felt this would be a challenge and was just too 

young to quit completely.” Although this definitely cuts into his 

fishing time, he said he still makes his two trips a year to Canada 

to fish and spends as much free time as possible at their cabin in 

Aikin County. He likes to go up there to just do nothing. When 

their five kids and six grandchildren are around, Wehmhoff and 

his wife, Bonnie, definitely have their hands full. “I wouldn’t have 

it any other way. Grandkids keep you young,” he added. 

Now that the October 15th deadline for individual tax returns 

under extension is past, his focus is back on the investments and 

monitoring what is coming next. “Keeping the lines of communication 

open saves us all from surprises, and, when it comes to taxes, 

surprises are usually difficult to overcome,” Wehmhoff said. PG 


32 :: PETTERSGROUP

EXECUTIVE PROFILE :: rick ENGELS 

Many people cultivate their leadership skills and teamwork 

focus while in business school, or during an 

internship, but Rick Engels, Petters Group Worldwide 

CFO, took a different route — he discovered a love of operational 

excellence as soon as he put on a wetsuit. 

Although he’d planned to go the usual business school route 

after high school, a freak car accident that claimed the life of his little 

brother changed Engels’ outlook on the future. Instead of college 

after his high school graduation, he decided to become a Navy diver. 

“My parents flipped,” he recalled. “There was no way they 

wanted their son in the military, and even I didn’t know what to 

expect. But, as I was going through the grieving process for my 

younger brother, it just 

seemed like the right 

path for me.” 

Since his aunt and 

uncle were divers, and 

often went diving for 

wrecks in Lake Superior, 

Engels had some experience, but he had no idea that what he would 

learn during 7 years in the Navy would prepare him for every endeavor 

after the military. 

“Whether you’re on a submarine or part of a diving team, 

there’s the concept for doing things together, and there’s no task too 

big to overcome,” he said. “You have to look out for each other, and 

work under pressure. Mainly, I learned that when you see opportunity, 

you need to go after it.” 

Engels spent two years in Japan and five in Hawaii, where he 

married his wife, Linda, and began doing undergraduate work in 

finance and accounting at Chaminade University of Honolulu. He 

also became a Navy instructor, teaching special forces teams how to 

dive. Even that experience prepared him for high stress moments at 

Petters Group, he noted. 

“People get anxious and I just think back to that time, when 

mistakes in the Navy meant that someone could die,” he said. “That 

makes it easy to assess a situation now and say, hey, we can work 

on this. No one’s life is on the line.” 

After getting his degree, Engels and his wife moved back to his 

native Minnesota because they felt it was a good place to start a 

family. Although he missed the ocean, he was eager to get into an 

Rick Engels 

Diving into Entrepreneurialism 

WRITTEN BY ELIZABETH MILLARD 

PHOTO BY TODD BUCHANAN 

accounting firm that specialized in retail, and joined Touche Ross, 

which later became Deloitte Touche. Retail gave him an opportunity 

to explore his entrepreneurial side, but also to satisfy his passion 

for shopping. 

“Yes, it’s true, I’m not your typical male,” he said, laughing. “I 

love to shop. I am a treasure hunter, always looking for deals.” 

Consolidation in the accounting industry came just after Engels 

left Touche Ross, and he ended up as Corporate Controller at the 

Deluxe Corporation, best known for its check printing operations. To 

learn the nuances of the industry, Engels went on sales calls, and 

when a new CEO joined the company in 1995, the firm went on an 

acquisition spree. It was then that Engels felt his entrepreneurial drive 

kick into high gear. 

“I learned that when you see 

opportunity, you need to go after it.” 

— RICK ENGELS 

“To know how to 

buy a company, you 

have to understand the 

seller’s perspective, and 

that’s what I learned at 

Deluxe,” he said. “I 

began to get passionately interested in acquisition deals.” 

After being made CFO at the company, Engels went to St. Thomas 

University and got an executive MBA, which helped broaden his 

strategic education and gave him a better grasp of organizational 

structure. During a stint at a conglomerate called IMI, he drew on his 

shopping mania once more by working in the retailing side, helping 

to launch marketing efforts for the Toyota Scion, among other efforts. 

When he joined Petters Group last year, Engels felt that all his 

past experience — from Navy teamwork to Deluxe’s hands-on 

acquisition training — came together. 

“All that learning allowed me to come into an environment like 

Petters Group and not feel overwhelmed by the challenges,” he 

said. “Tom Petters has invested in more than 60 companies, after 

all. Talk about entrepreneurial.” 

As well as working with 10 Petters Group investments, Engels 

has also put in processes that boost operational excellence, he 

noted. But don’t think he’s hung up his wetsuit for good. 

“Aaron Chang International, one of the companies in the portfolio, 

is a surfing company,” he said. “So, when I visit them, I 

invariably get a call from Tom asking if I’m surfing or working, and 

I can honestly say: both!” PG 


:: 

WHERE IN THE WORLD IS TOM? october 17-october 25 

TUESDAY, OCTOBER 17TH 

At the NBAA tradeshow in Orlando, FL with Jay Salmen, President of 

Petters Aviation, the final details for the purchase of an Airbus A318 corporate 

jet are finalized as Petters Aviation expands it fleet to three planes. 

WEDNESDAY, OCTOBER 18TH 

A quick flight into an island has Tom arriving just in time for meetings on 

a new land deal. Talks initiated calls to several leaders of Petters Group companies 

as ideas were flying all around on ways to connect them with the 

new projects. Tom tried to get them on flights to the Bahamas that night. 

SATURDAY, OCTOBER 21ST 

A flight into West Palm Beach where the Florida Petters Group office is 

located allows Tom to catch up on over 200 emails since he hasn’t had 

access to a computer or BlackBerry since Tuesday. 

SUNDAY, OCTOBER 22ND & MONDAY, OCTOBER 23RD 

Sunday brings a flight into New York, where he meets up with Mary 

Jeffries, President/COO of Petters Group for meetings all day Monday. 

She had been in the city shopping with her daughter all weekend so 

he said the meetings would give her credit cards time to rest. 

David Baer arrives in New York with the news the Department of 

Transportation had given initial approval of the Sun Country purchase. A call 


�� 

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. 

back to Minnesota pulls together members Petters Media Group and Sun 

Country to initiate plans for the deal closing and news conference. That night 

they all attend a celebration for Paul Traub, a Petters Group Strategic Partner, 

because his law firm joins with Dreier, LLP, a New York fall service law firm. 

TUESDAY, OCTOBER 24TH 

A morning of meetings is cut short, partially because Tom had gotten 

a slight case of food poisoning from the oysters he ate the night 

before and so they could catch a flight back to Minnesota. They 

land at 1 pm which allows him a few hours to take a nap and convince 

his assistant DeAnne he’s well enough to go to the University 

of Minnesota Carlson School of Business at 5 pm to deliver a 

keynote speech and participate on a panel discussion about leadership. 

Patty Hamm, EVP of HR and Learning Center was there ready 

to take over if he had a relapse. 

WEDNESDAY, OCTOBER 25TH 

A flight to Miami University in Oxford, OH with Patty Hamm, EVP 

Human Resources and Learning Center, kicks off the summer 

intern interviewing process. As a member of the Board of Visitors 

for Miami he attends a reception where he avoided the seafood bar 

and than attended a board meeting on Thursday. PG

:: 

VALUES balancing goals 

Like north, south, east and west or top, 

bottom, left and right, there are four 

forces of business. They support one 

another by their direct opposition to each 

other. All organizations are bound by these 

four forces, and, if the correct tension exists 

between them, they are the institutions of 

opportunity. They are Create, Compete, 

Collaborate and Control, the four “C’s”. Each of 

these four quadrants is associated with specific 

characteristics to help identify what kind of 

organizations fit within the perimeters. 

When I was teaching at the University of 

Michigan’s EMBA program I had the opportunity 

to work with two incredibly talented professors. 

The first is Robert E. Quinn, Professor in 

Business Administration, Professor of 

Management and Organizations, and author of 

many wonderful books, including Deep Change 

– a great read for anyone interested in learning 

new ways of thinking and behaving in business. 

The second professor is Anjan V. Thakor, former 

Professor of Banking and Finance, Chairman of 

the Finance area, Ross School of Business, 

University of Michigan and currently the Senior 

Associate Dean and Professor of Finance, Olin 

School of Business, Washington University in St. 

Louis, MO. He has also been a deciding vote for 

the Nobel Prize in Economics for many years. 

During one of the lectures, they presented an 

organizational design concept that helped me 

more than any other. That concept was the 

“Four Forces Model”. All organizations are 

grounded in the principles of this model. 

Whether or not they intentionally follow this 

specific framework, they are affected by it 

nonetheless. Understanding this framework, 

within which all firms must operate, had a profound 

effect on me early in my work life. I spent 

DO NOT FALL 

Off the Ball 

Understanding the Forces of Business 

WRITTEN BY LARRY HARMER ILLUSTRATIONS BY WHOLONICS LEADERSHIP AND LARRY HARMER 

years working with these professors and also 

with organizations such as Whirlpool, Dow- 

Corning, NASA, Reuters, Motorola and GM 

learning to identify and make organizational 

change based on these four forces. 

CREATIVE ORGANIZATIONS are 

focused on building the “New”. Their components 

are Innovation, Growth, Experimentation, 

Speculation, Creativity and Vision. Advertising 

and marketing firms have this organizing force 

at their very core. The risk for creative organizations 

is if they do not temper their direction they 

create a state of chaos. 

CONTROLLING ORGANIZATIONS are 

in direct opposition to “Create” companies. 

Their focus is on building the “Better”. Their 

components are Quality, Efficiency, 

Systemization, Compliance, Process, and 

Administration. Accounting and auditing firms 

are traditional examples of this organizing 

force. The risk for controlling organizations is 

that they can become a paralyzing bureaucracy. 

COMPETITIVE ORGANIZATIONS are 

focused on short term performance. Their roots 

are Profit, Speed, Discipline, Challenge, Goals, 

and Performance. Sports teams and commodity 

producers are most often associated with this 

organizing force. The risk for highly competitive 

organizations is becoming a sweat shop that 

runs itself and its employees into burn-out. 

COLLABORATIVE ORGANIZATIONS 

are a direct opposite to competitive force companies. 

Their focus is on long term development. 

Their descriptions are Community, 

Knowledge, Cooperation, Learning, Values and 

Larry Harmer 

Communication. Political organizations and 

universities are classical examples of this force. 

The risk of these types of associations is that 

they become country clubs and are so driven to 

consensus that they never accomplish anything. 

ATTENTION TO THE TENSION: Like 

the cable of a suspension bridge, each opposing 

force helps to support the other. Some organizations 

are more heavily weighted on one quadrant 

than another. It doesn’t make much sense 

for an accounting firm to spend most of it’s time 

on delivering creative services to its customers 

when the customer hired them specifically to be 

a control mechanism for the organization. 

Likewise, a professional football team, which 

falls squarely in the “compete” quadrant, would 

not want to meet with the opposing team and 

“collaborate” on the game plan. Ultimately, the 


:: 

VALUES balancing goals 

Internal 

Capability 

Long-term 

Development 

Collaborate 

Community 

Quality 

Better 

Control 

most successful companies are those that know 

who they are and when they need to focus on 

which quadrant. The ability to move from force 

to force is the purpose behind the identification 

tools below. So while it doesn’t make sense for 

the Minnesota Golden Gophers to collaborate 

with the Michigan Wolverines before a game, it 

might make sense for the coaching staff to collaborate 

with other coaches or even professional 

teams to improve on offensive formations, 

defensive stunts or drills to run in practice. 

Keeping tension between the forces allows for a 

healthy operation. A real world example is 

Polaroid Consumer Electronics. After 3 years of 

incredible success in the “create” quadrant 

(experimentation, speculation, creativity, etc.), 


Cooperation 

Systemization 

Knowledge 

Values 

Process 

Learning 

Adaptability 

Communication 

Administration 

Compliance 

Efficiency 

CONTEXT 

ORGANIZATION 

INDIVIDUAL 

Stability 

Innovation 

Experimentation 

Creativity 

Goals 

Vision 

Discipline 

Profits 

Performance 

Speculation 

Challenge 

New 

Create 

Growth 

Speed 

Short-term 

Performance 

Compete 

External 

Opportunity 

If we are a primarily creative organization, 

moving the ball and focusing on the aspects 

of Control, Compete, and Collaborate 

allows us to keep up the balance to be 

successful and we then remain healthy. 

the organization must spend more time on the 

“control” force (efficiency, compliance, process, 

etc.) if it is to maintain its successful growth. 

BALANCING ACT: While in Vienna earlier 

this year as we prepared for the production of 

Polaroid electronics products in the European 

market, the World Cup was going on. You 

couldn’t walk down the street or turn on the TV 

without seeing a soccer ball. Most impressive to 

me was not the scoring of all the 

“GOOOOOOALS” but watching all the tricks 

performed with the ball. They could bounce it 

on their heads and spin it on the top of their foot 

like the Harlem Globetrotters spin a basketball 

on their finger. The entertainment was just as 

good outside as the matches themselves. I was 

waiting for a train one afternoon and a young 

boy was trying a trick he had most likely seen 

one of his favorite players do in warm ups.He 

was trying to stand on top of the ball and then, 

by rolling it and walking on top of it like a circus 

clown, he moved from place to place in the 

train station. If he stayed in one place he would 

inevitably lose his balance and fall off, potentially 

leading to injury. However, if he continually 

moved on top of the ball and never focused on 

just one spot, he maintained his balance. By 

moving his feet from place to place he wowed 

the crowd of commuters. I thought about how 

much this boy’s performance is similar to the 

four forces. If we just focus on one area we will 

do alright for a while but will inevitably fall off, 

which could be unhealthy. If we are a primarily 

creative organization, moving the ball and focusing 

on the aspects of Control, Compete, and 

Collaborate allows us to keep up the balance to 

be successful and we then remain healthy. 

IDENTIFYING AND ADAPTING: 

Action Planning Tips are to help identify what 

type of organization you are in and the direction 

you want to go. I have broken down each 

of the four forces by what groups can do to help 

their organization make changes. Whether it’s 

the tip sheet for groups or individual leaders, 

focusing on the specific components of each 

quadrant and using these tools will help to 

move “toward” or “away” from those organization 

behaviors. Think of it as the company’s two 

feet moving around on the top of the ball to 

help keep its balance. 

Every once in a while when time permits, I 

get to see an episode of the Simpson’s. I get a real 

kick out of Homer’s one liners. One of my 

favorites is when Homer falls out of Bart’s tree 

house and plummets to the ground. He clenches 

his fist, shakes it mid-air and then curses the 

law of gravity as if he was somehow expecting to 

not be effected by its force. Every organization is 

bound by these Four Forces. Even if we clench 

our fist and shake it mid-air we are still bound 

by these effects. Understanding what these 

forces are, the nature that makes up each force, 

and then organizing ourselves around the forces, 

all while staying balanced on top of the ball, is 

the goal of the game. PG

GROUP ACTION PLANNING TIPS :: 

If you want your organization to operate through ... Move toward ... follow these tips. Move away from ... follow these tips. 

A 

Cooperation 

B 

Learning 

C 

Experimentation 

D 

Speculation 

E 

Challenge 

F 

Discipline 

G 

Compliance 

H 

Systemization 

• systemize cultural orientation of employees 

• emphasize people skills 

• continue conflict resolution efforts 

• train in teams skills 

• use impactful training programs 

• mentor with effective methods 

• emphasize development 

• invest in education and development 

• allocate resources for innovation 

• celebrate past risk takers 

• view failure as learning 

• adjust budgets to accommodate emergent ideas 

• anticipate customer needs 

• continuously reinvent current products 

• test drive prototypes in sophisticated markets 

• maintain capacity to continually change the organization 

• emphasize immediate results 

• continually reduce time cycles 

• acquire outside competencies quickly 

• focus on speed 

• create intense orientation toward achievement 

• implement an “exel or exit” policy 

• excalate emphasis on profit continually 

• base individual power on results 

• adhere to the budget 

• monitor expenses closely 

• do more with less 

• allocate resources uniformly 

• document procedures 

• emphasize quantitative process controls 

• emphasize technical problems 

• maintain rigorous operational standards 

• emphasize immediate results 

• continually reduce time cycles 

• acquire outside competencies quickly 

• focus on speed 

• create intense orientation toward achievement 

• implement an “exel or exit” policy 

• escalate emphasis on profit continually 

• base individual power on results 

• adhere to the budget 

• monitor expenses closely 

• do more with less 

• allocate resources uniformly 

• document procedures 

• emphasize quantitative process controls 

• emphasize technical problems 

• maintain rigorous operational standards 

• systemize cultural orientation of employees 

• emphasize people skills 

• continue conflict resolution efforts 

• train in teams skills 

• use impactful training programs 

• mentor with effective methods 

• emphasize development 

• invest in education and development 

• allocate resources for innovation 

• celebrate past risk takers 

• view failure as learning 

• adjust budgets to accommodate emergent ideas 

• anticipate customer needs 

• continuously reinvent current products 

• test drive prototypes in sophisticated markets 

• maintain capacity to continually change the organization 

INDIVIDUAL LEADER ACTION PLANNING TIPS :: 

If you want to lead through ... Move toward ... follow these tips. Move away from ... follow these tips. 

A 

Values 

B 

Communication 

C 

Creativity 

D 

Vision 

E 

Performance 

F 

Goals 

G 

Administration 

H 

Process 

• establish shared values between people 

• develop a sense of committed community 

• generate a common group mindset 

• create a sense of cohesion in the organization 

• communicate trust 

• listen with concern 

• establish mutual understanding 

• create open communication 

• encourage creativity 

• support people with innovative notions 

• reward new ideas 

• stimulate people to think originally 

• envision ambitious, strategic change efforts 

• conceive significant new ventures 

• design bold organizational initiatives 

• propose dramatic strategies 

• model decisive action 

• confront problems as soon as they occur 

• quickly address new difficulties 

• provide fast responses to new issues 

• emphasize goals 

• see that the objectives are achieved 

• focus on intended results continually 

• drive for continuous achievement 

• conserve fiscal resources 

• find ways to save money 

• make disciplined financial allocations 

• prevent people from making costly mistakes 

• make work processes routine 

• stabilize work systems 

• get work processes under control 

• ensure smooth internal work processes 

• model decisive action 

• confront problems as soon as they occur 

• quickly address new difficulties 

• provide fast responses to new issues 

• emphasize goals 

• see that the objectives are achieved 

• focus on intended results continually 

• drive for continuous achievement 

• conserve fiscal resources 

• find ways to save money 

• make disciplined financial allocations 

• prevent people from making costly mistakes 

• make work processes routine 

• stabilize work systems 

• get work processes under control 

• ensure smooth internal work processes 

• establish shared values between people 

• develop a sense of committed community 

• generate a common group mindset 

• create a sense of cohesion in the organization 

• communicate trust 

• listen with concern 

• establish mutual understanding 

• create open communication 

• encourage creativity 

• support people with innovative notions 

• reward new ideas 

• stimulate people to think originally 

• envision ambitious, strategic change efforts 

• conceive significant new ventures 

• design bold organizational initiatives 

• propose dramatic strategies 


:: 

THE LEARNING CENTER summer internships expand 

Summer School in Session 

Interns Bring Enthusiasm and Ideas 

The first morning of the John T. Petters 

summer internship program for 2006 

had 26 interns arriving at the doors 

of the Minnetonka headquarters overwhelmed 

with thoughts of, “What will this 

summer hold for me?” As soon as they arrived 

in the Learning Center, nerves were calmed as 

the friendly smiles of Patty Hamm and Amy 

Waara greeted them. Glancing around the 

room, the other interns were anxious to get to 

know one another, anxious to meet their 

managers, and anxious to find out what they 

were going to do for the rest of the summer. 

During the intern orientation, the interns had 

the pleasure of meeting CEO and Chairman 

Tom Petters who lit up the room instantly and 

greeted everyone with a smile. “It was great to 

meet Mr. Petters on the first day and to be 

able to listen to him speak of the company 

and the values and cornerstones of which 

Petters Group stands behind. It was a motivational 

kick-off to the summer,” Laura Bartlett, 

Intern for Corporate Communications said. 

The interns would all agree that the first 


(clockwise from top) [1] Interns in the Waltham 

office Rebecca Ross, (HR/Legal), Rachel Welsh 

(Ecommerce Marketing), Alan Simonian 

(Finance/IT), Aysegul Topcu (Manufacturing) and 

Lacy Bradley-Storey (Marketing) [2] Belinda 

Fleming, Intern for PCE Marketing [3] Nic 

Younghans, Intern for PCE Product Development 

week flew by. New projects were beginning 

and appetites were increasing. Projects 

involving the Circuit City product line, development 

of a product line for Mexico and business 

development research were just a few. 

“The amount of responsibility I received 

through this internship challenged me to 

develop quickly and to think critically about 

INITIATING PROJECTS FOR 

THE FUTURE :: Polaroid 

Interns Tackle the To-Do List 

THE POLAROID OFFICES in Waltham, 

Mass. had five interns participating this 

summer in the John T. Petters 

Internship Program. The Polaroid office 

strived to provide meaningful projects 

for their summer interns. They were 

spread out within the company and 

assigned a mentor/manager to provide 

them with support and guidance on 

very diverse projects. 

Alan Simonian created new management 

reporting templates and processes 

that reduced the time needed to get corporate 

financials to senior management. 

Rebecca Ross made recommendations 

for future records retention. She also 

designed the Wellness Month activities 

for Waltham and a strategy for continued 

wellness activities. Aysegul Topcu developed 

a new warehousing plan for all US 

manufacturing raw and work-in-process 

materials as well as a strategy to minimize 

storage risk. Lacey Bradley-Storey 

developed a business plan and implementation 

strategy for expanding our ecommerce 

customer base. Rachel Welsh 

redesigned and updated the company 

information section that appears on 

www.polaroid.com to better articulate and 

reflect Polaroid’s brand history and its 

future direction. 

On August 23rd, the interns presented 

overviews of their projects to Bob 

Gregerson, Polaroid President, Instant 

Division, Tom Beaudoin, Polaroid 

CFO/COO, and their mentor/managers. 

All the projects are currently in some 

stage of implementation. The summer 

internship program was clearly valuable 

to the interns, as well as to Polaroid.

the practical application of my schoolwork,” 

John Lee, Intern for Polaroid Product 

Development said. 

Work Then Play… There is also a fun side 

to being an intern with Petters Group. One of 

the events they attended in was the Joe Schmit’s 

Big Brothers and Big Sisters fundraiser, of which 

Petters Group was a major sponsor. Another 

event was a St. Paul Saint’s game in late June. 

The interns and employees were invited onto 

the field by the Saint’s promotion group to be in 

a “Rock N’ Roll” contest to win a five pound 

Salted Nut Roll – and yes, they did win! The 

summer ended with a special evening event and 

a two hour cruise on Lake Minnetonka. 

TAG TEAMING WITH COUNTERPARTS 

around the globe, communicating in 

Mandarin, and staying attuned to changing 

client priorities were among the skills 

learned this summer by 21 students from 

Miami of Ohio’s Interactive Media Studies 

(IMS) Program. 

Polaroid Consumer Brands needed help 

on a new product launch idea and the students 

from IMS were looking for an international 

work/study opportunity to enrich 

their summer project experience. Krystal 

Anderson and Terri O’Shaughnessy of 

Petters Consumer Brands traveled to 

Shanghai, China to kick off the students’ 6week 

educational project. The project 

Patty Hamm, EVP of 

Human Resources and 

Andy Michelides, Intern for 

PCE marketing 

Final Evaluations… To complete the 

internship, each intern gave a 15 minute presentation 

to their fellow interns and all the 

managers. They shared successes and failures 

related to goals that were submitted at the 

beginning of the summer. “This internship 

proved to be a remarkable experience for me. 

I will use the skills and knowledge I gained 

here for the rest of my life,” Matthew 

Logering, Intern for Polaroid Operations said. 

Many interns found that they loved working 

in the fast paced environment at Petters 

Group, many discovered tasks that they 

excelled at, and many said it helped them 

gain a focus for studies going forward. A large 

involved helping to develop an innovative 

product that uses a unique website user 

interface, developing a business plan, 

online/offline strategy and new product 

development for the venture. 

To ensure maximum efficiency and 

communication, their efforts had to be 

coordinated with the company’s 

Minnetonka office. When one office was 

closing for the day, the other office was 

opening. “There is a totally different 

dynamic when you are halfway around 

the world from your client,” team member 

Lacey Hopkins said. “It makes you 

regulate your communication more and 

forces you to be more conscious of using 

“I will use the skills 

and knowledge I 

gained here for the 

rest of my life.” 

— MATTHEW LOGERING 

number of interns commented on how this 

internship had challenged them. They had to 

face obstacles and now can walk with confidence 

to any job interview upon graduation. 

All in all, it was a life experience for everyone. 

“I think the interns somewhat embody 

what makes Petters Group so successful – 

an intelligent, energetic, and unique group 

of people working together to accomplish 

great things. You simply can’t get that kind 

of training and experience in a classroom. 

My experience at Petters Group has significantly 

prepared me for any career path I 

might choose,” Adam Barvels, Intern for 

Polaroid Finance said. PG 

WAKE UP CALL AT 8:00 PM ::Miami of Ohio Students Help to Launch Program 

your time with the client effectively.” 

Faculty and students say they received 

tremendous support from Petters Group, 

which reached far beyond the financial support 

into the extra effort to minimize the 

challenges posed by time and location differences. 

The project itself was exciting and 

challenging, but the international aspect 

made the endeavor even more valuable. “I 

think any country would have been a good 

experience, but I can’t imagine a better 

place to work than China,” she said. “With 

China’s emergence as a front-runner in 

business, this experience will be invaluable 

to us as we continue to study at Miami and 

as we leave here in search of our careers.” 


:: 

FEATURE inside glance 

Tuning into the 

Hospitality Market 

Petters Hospitality Bringing Polaroid to a New Market WRITTEN BY TIFFANY NASH 

Alot of time and hard work goes into 

creating a successful business and no 

one knows that better than Petters 

Hospitality Group. As a portfolio company of 

Petters Group Worldwide, Petters Hospitality, 

based in West Palm Beach, FL, builds relationships 

with global manufacturers to develop 

state of the art entertainment technologies, 

commercial LCD TVs, appliances and brand 

extensions for distribution through commercial 

venues, including hotels/motels, restaurants, 

cruise lines, healthcare, digital signage 

and other specialty channels. This year has 

been a tremendous growing process for the 

tight knit Florida team. They are busy working 

on building relationships within the industry 

and developing quality products and services 

that are specifically designed to meet and 

exceed current commercial industry standards. 

What started as a one-woman show in the 

summer of 2005 with Kim Honig, current 


Director Business Development, has now 

become an office of 4, with the recent addition 

of Steve Hollington, Director Product 

Management. Dove Carter, who has been with 

Petters Group for nine years and was instrumental 

in the early efforts of Polaroid 

Consumer Electronics, will transition to 

Petters Hospitality by the end of the year as 

Vice President Operations. 

When Honig came to work for Petters 

Group after graduating from Miami 

University, she began working with Tom 

Petters on a vision he had of merging the 

Polaroid brand into the hospitality and commercial 

industry. Honig began researching 

market potential around this new industry, in 

addition to exploring the vastly different manufacturing 

requirements involved in the business, 

and began building relationships with 

partners and potential customers. Today, 

with the expertise of Jon McGaunn, 

President/COO, Greg Kandare, Vice President 

Products, Hollington, and Carter, Petters 

Hospitality offers customized programs; fast, 

on-time solutions; advanced technologies and 

innovative systems; worldwide recognized 

brands; and aggressive pricing. Petters 

Hospitality prides itself on being agile when 

building programs and products by working 

closely with their customers to provide the 

highest quality product that is specifically 

designed to meet the needs and exceed the 

expectations of guests. 

The company will offer a full line of hospitality 

ready products with systems interface 

and DVD player option, including 15”, 19”, 

26”, 32”, 37”, 40” and, coming soon, 46” 

LCDs. This breadth of product is more comprehensive 

than its competitors and is quickly 

gaining positive exposure with recent ads 

in Lodging Hospitality, Hotels, Hotel Business, 

and show dailies for the International

(photos l to r) [1] Greg Kandare, Kim Honig, Jon McGaunn, and Anastasia Dorsey in the HD Boutique 

booth [2] Jon McGaunn, Kim Honig, and Greg Kandare in front of the HITEC booth [3] Greg Kandare and 

Nic Younghans setting up for HITEC 

Motel/Hotel & Restaurant Show (IH/M&RS) 

in New York City. This latest tradeshow was 

the first place Petters Hospitality premiered 

and marks the fourth industry show the company 

has done thus far, behind HITEC and 

HD Boutique. “Our product has been very 

well received at these shows, and we have 

seen a major increase in traction within the 

industry, building relationships with key 

strategical partners,” Jon McGaunn said. 

Among these key strategical partners are 

LodgeNet and On Command. On Command 

Video Corporation is a leading provider of inroom 

entertainment technology to the lodging 

and cruise ship industries and will work 

with Petters Hospitality to provide Polaroid 

televisions with On Command’s in-room 

video entertainment system. “With HD content 

beginning to make a presence in the 

hotel rooms, it is important that we know 

quality systems like Polaroid are present to 

enhance the programming we are providing 

to guests,” David Simpson, CTO and SVP of 

R&D of On Command said. LodgeNet 

Entertainment Corporation, the world leader 

in interactive TV and broadband solutions to 

hotels, has partnered with Petters Hospitality 

to integrate Polaroid’s high-definition displays 

with LodgeNet’s HDTV platform for 

high-definition free-to-guest and video-ondemand 

services. Petters Hospitality has also 

adopted Pro:Idiom content security technology 

that will enable LodgeNet and 

OnCommand served hotels with Polaroid flat 

panel screens that are enabled with 

Pro:Idiom protected HD premium satellite 

and VOD entertainment. 

For the past 6 months, the team has 

focused on the back-end operations and integrating 

technology into the product. Now, with 

the industry buzzing in anticipation of the 

deployment of the Polaroid hospitality LCD line 

the future for Petters Hospitality looks brighter 

and more promising than ever. “We would 

never have been able to move as quickly into 

manufacturing as we have without utilizing the 

infrastructure, people and business relationships 

already in place due to the success of the 

retail product at PBC and PCE,” Kim Honig 

said. To learn more about Petters Hospitality 

and their product line, you can visit their new 

website at www.pettershospitality.com. PG 

JULY 11, 2005 

Kim Honig begins working on 

hospitality and commercial 

business development research 

NOV. 13-15, 2005 

IH/M&RS 2005 tradeshow in NY 

JAN. 5 

Jon McGaunn joins the company 

FEB. 2 

Petters Hospitality and 

Entertainment Group, LLC is formed 

FEB. 27 

Pro:Idiom contract effective 

MARCH 31 

Greg Kandare joins the company 

JUNE 20-22 

HITEC tradeshow in Minneapolis 

JUNE 21 

HD On Command contract effective 

SEPT. 18-19 

HD Boutique tradeshow in Miami 

OCT. 16 

Standard Definition and HD 

LodgeNet contract effective 

OCT. 23 

Steve Hollinger joins the company 

NOV. 12-14 

IH/M&RS tradeshow in NY 

JAN. 1, 2007 

Dove Carter joins the company 

Q1, 2007 

1st product with Pro:Idiom 

technology scheduled for delivery 


:: 

FEATURE inside glance 

Connecting 

THECustomer 

Petters Media Group Leveraging Relationships 

TO 

like to call it full metal jacket 

media.” That was how “We 

Petters Media Group (PMG) 

Chairman Bill Dunlap described the newly 

formed company within Petters Group 

Worldwide. Based on the theory that you can’t 

live by traditional advertising and marketing 

alone, PMG is a leader in the “New Media” 

arena. Bill should know. He ran Campbell 

Mithun for over two decades, one of the largest 

advertising firms in the Midwest. 

PMG excels in four areas: data management, 

content management, new media distribution 

and creative customer connections. PMG can 

build massive force by connecting with customers 

using world class data and innovative 

new media distribution such as airline, internet 

and digital media. This new media will be 

applied to the Petters Group portfolio and to outside 

companies creating a new content universe. 

“Each competency can stand on its own, 

but when you bring them together and put 

them in the Petters Group machine, it gives us 

a very unique competitive advantage,” Joe 

Schmit, President of PMG said. “The goal of this 

group is to make relevant, meaningful connections 

with the customer, and guess what, that 

leads to market growth.” 

PMG begins by analyzing and understanding 

the desired business outcomes of the client. 

Then, based on the intelligence they gather 

through their data research, PMG is able to build 

a customized strategy to achieve outcomes that 

have impact. They not only understand the 

demographics and movements of the targeted 

market, but they study cognitive behaviors so 

they can identify the new media channels that 

will pinpoint these people. 

“Traditional advertising still works,” Dunlap 

said, “but businesses that are not moving into 

the new experiential media area are going to get 

left at the bus stop.” Dunlap is talking about 

media that reaches people when they travel, 


shop, play or are on-line. Advertising agencies 

don’t need to be concerned because PMG works 

closely with client’s agencies that are focusing on 

more traditional media. 

A division of Petters Group Worldwide, 

PMG has access to unique resources to build 

business with minimum disruption while generating 

maximum impact. By connecting the dots 

with the many existing channels and advertising 

opportunities, they can leverage core competencies 

and synergies across portfolio investments 

including brand development, content, merchandising, 

sourcing and technology. It’s leverage 

with a capital “L”. 

PMG can create a digital communications 

network by just using the power of Petters 

Group. Polaroid can supply the hardware, 

Broadsign the software, and PMG the creative 

and content. We become a one-stop shop into 

LEVERAGE 

with a capital “L” 

the future. PRN or Walmart TV are just the start 

of the digital era. Forester Research predicts that 

90 percent of retail outlets will have in-store 

media by 2011. “Hotels, banks, restaurants and 

all retailers will have a digital network in the near 

future and they are poised to catch the wave,” 

Schmit said. “It’s the biggest breakthrough in the 

advertising industry in the last 25 years.” PMG 

has the technology to change the digital signage 

not only in each store, but in each isle in the 

store. In other words, if you are in the cereal area 

of the grocery store, you will see the special for 

Lucky Charms, not an ad for Tidy Bowl. 

Here’s the beauty of the system; the return on 

investment will be measurable and in real time. 

When Google buys MySpace for 1.65 billion 

dollars, you know that someone realizes the 

(l to r) Bill Dunlap and Joe Schmit 

power and value of the internet. It’s not only 

internet traffic that is valuable, but the data that 

can be mined and how you react with that data 

can be invaluable. PMG’s internet plan is to be 

able to use the data to fuel targeted, strategic 

communications with customers by producing 

videos that are personalized. With a production 

house in the building, these videos can be produced 

quickly and inexpensively. The customer 

realizes they are not being spammed; just the 

opposite, they are being courted and it can lead 

to a connection. 

Petters Media Group is also poised to be the 

leader in the next genre of personalized marketing: 

mobile content. PMG is working on a 

mobile content strategy to stay ahead of the next 

contextual marketing waves. 

While focusing on core competencies, 

Petters Media Group will also live by the core 

values of Petters Group. Agility: Pertinent in an 

ever changing technology marketplace. Caring: 

A quality that resonates throughout the entire 

company. Execution: A great plan with average 

execution is invisible. A great plan with great 

execution is something the companies of Petters 

Group strive toward for real impact. Humility: 

Don’t get too high on your horse even when you 

exceed the goals set prior. Innovation: As Bill 

Dunlap said, “Cash follows creativity.” Integrity: 

It’s not only demanded, it’s expected at PMG. PG

COVER STORY :: POLAROID 

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Taking the Pixel Digital 

WRITTEN BY ANDREA MILLER/////////////////////// 

///////////////////////// PHOTOS BY TATE CARLSON 

Building on a heritage of Innovation, 

Dr. Edward Land was a great visionary 

and innovator who, in 1937, 

formed the Polaroid Corporation. His goal: to 

develop and market ground-breaking inventions, 

which included polarized sunglasses, 3- 

D photographs, and the first stereoscopic 

motion picture viewers. Capitalizing on its 

successful research, Polaroid launched instant 

photography in 1948. Superior technology, 

creative marketing, and exemplary business 


practices have always been the foundation of 

Polaroid’s success. 

“Innovation is one of Petters Group’s 

core values, and it will be an important 

ingredient in Polaroid’s transformation and 

future growth as the brand approaches its 

70th anniversary,” Tom Petters, Chairman of 

Polaroid and Petters Group said. 

At the heart of Polaroid’s evolution is its successful 

consumer electronics business. Building 

on the respected Polaroid brand, and its innova- 

tive business model, the company is rapidly 

expanding its leadership in the market. 

In the US, Polaroid has made extraordinary 

strides, achieving sales into 8 of the top 10 big 

box retailers within its first three years. The 

Polaroid LCD TV has jumped into the #1 sales 

position for many of the retailers. This is building 

off strong sales of the portable DVD players 

which were ranked #1 and digital cameras 

ranked #7 in 2005 by NPD Group and Twice 

Magazine. “It is an exciting time for Polaroid. We

are able to leverage the strength of this great 

brand as we grow a successful consumer electronics 

business. Building on our success in the 

United States, we now have the opportunity to 

take advantage of Polaroid’s presence in other 

countries and expand globally,” Mike 

O’Shaughnessy Polaroid CEO said. 

Part of this building process is also the 

expansion of product offerings and brand 

marketing. The Polaroid brand has expanded 

to GPS systems, PMPs, digital photo frames, 

and SD memory cards. Product development 

teams led by Scott Hardy, SVP Product 

Management and Jim Koestler, VP Products, 

are working with retailers to create customized 

products their customers are 

demanding. On the brand awareness front, 

Polaroid’s marketing machinery is seeking 

brand opportunities more than ever with 

Polaroid’s products regularly appearing in gift 

guides and product spotlights of several 

national print publications. In addition, 

Polaroid is appearing all over the media. The 

Polaroid Beach House, decked in Polaroid 

LCD televisions, hosted start-studded parties, 

while Polaroid also hosted the Polaroid 

Lounge at the Video Music Awards in New 

York City. But it doesn’t stop there. Polaroid 

also sponsored the second season of the “The 

Contender” and did a large campaign with 

The Breast Cancer Research Foundation and 

Elizabeth Hurley, providing a line of pink digital 

cameras with proceeds going to The BCRF. 


COVER STORY :: POLAROID 

With the help of individuals from the 

instant business and the addition of others with 

strong consumer electronics backgrounds, the 

international offices are able to service both the 

instant and consumer electronics businesses. 

“Instant remains key to our growth strategy as 

the profits from its high margins generates significant 

fuel for Polaroid’s future growth,” Tom 

Beaudoin, Polaroid CFO/COO said. Helping 

facilitate the global expansion in the UK is Steve 

Smith, VP, Sales and Marketing. Smith is working 

closely with Mike Petersen, Vice President of 

the European Product Group, to leverage existing 

Polaroid relationships to introduce and sell 

consumer electronics in the UK. 

“By integrating consumer electronics across 

all functions in our international offices, we are 

able to pave the way for new sales channels,” 

O’Shaughnessy said. A great example of this is 

Polaroid UK which will wrap up a very productive 

2006. The team has successfully sold several 

product lines to Dixons Stores Group 

International. Dixons is one of the largest consumer 

electronic retailers in Europe, with interests 

in France, Spain, Greece and Russia, as well 

as a very strong presence in the UK. Not only 

has Polaroid sold 4 portable DVD SKUs to 

Currys, a division of Dixons with 550 stores, it 

has also sold 26” and 32” LCD TVs to Dixons’ 

fastest growing chain, PC World, which has 150 

stores in the UK. 

Polaroid is also making progress in Asia 

Pacific with significant wins in Japan and 

Australia due to the efforts of Yuto Ito, President 

of Polaroid Japan, Richard Lim, Marketing/Sales 

Director, Asia Pacific Region and Scott Bayles, 

VP Sourcing. The Mexican market is the second 

largest geographic area in consumer electronics. 


“We now have the opportunity 

to take advantage of 

Polaroid’s presence in other 

countries and expand globally.” 

— MIKE O’SHAUGHNESSY, POLAROID CEO 

This region, led by Manuel Madriz, VP 

International Sales and Operations, leverages 

Polaroid’ strong market presence. 

Petters Group Worldwide’s purchase of 

Polaroid in 2005 provided the ideal opportunity 

to build on its heritage. Although combining 

the two companies presented some early challenges, 

the strength of the new enterprise is 

proving to be a powerful advantage. “It has 

taken a period of time to get here, but we now 

know our strengths and we are taking the steps 

to expand on them. We are in a better position 

to leverage our combined global employee talent 

to address areas that need improvement,” 

Beaudoin said. 

While Polaroid’s name has been synonymous 

with instant photography for decades, 

today the company’s three core businesses are 

Instant Imaging, Eyewear and Consumer 

Electronics. Though a market for instant products 

still exists, demand has continued to 

decline with the advent of digital photography. 

“We have a loyal customer base for instant film, 

so we will extend its life for as long as possible,” 

Beaudoin said. “Unfortunately, as sales decline, it 

becomes more expensive to procure the raw 

materials and to operate our unique production 

facilities cost effectively.” Thus, to remain profitable, 

Polaroid has sought out innovative solutions 

for some of its underutilized assets. 

In recent years, three businesses units 

have emerged from the core Polaroid business 

to become new companies with exciting 

opportunities. 

Wideblue Ltd. was created when Polaroid’s 

design and manufacturing center in Vale of 

Leven, Scotland (Vale) was established. An independent 

company that provides design services 

for manufacturing companies, Wideblue possesses 

the expertise necessary to take an idea 

from concept through to manufacturing, and is 

proficient in several areas including industrial, 

product, mechanical and automation design. 

In the US, ZINK Imaging, LLC, the inventor 

of ZINK “zero ink” paper, a break-through 

technology that will fundamentally change 

the way people print digital images, is another 

spin out from Polaroid Corporation. ZINK 

Imaging, headquartered in Waltham, Mass, is 

partnering with worldwide development and 

go-to-market partners, who are leaders in 

their respective fields, to bring ZINK enabled 

products to market. 

In addition, Multilayer Coating 

Technologies, LLC (MTC) was established 

with Polaroid’s sale of its New Bedford, Mass 

coating manufacturing operations. MCT will 

continue to supply Polaroid with its instant 

film components and will work to build its 

contract coating business by providing services 

to other companies. By finding a company 

to take over its coating business, Polaroid was 

able to maintain an essential component of its 

instant film manufacturing, while facilitating 

employment for 250 workers. 

Wideblue, ZINK Imaging and MCT have 

promising futures, and their talented and experienced 

employees are sure to make significant 

contributions to their success. 

In addition to creating outside businesses 

where it makes sense, Polaroid is also evaluating 

its instant film facilities and exploring their use 

by other Polaroid businesses. The facility in Vale, 

which has served as a manufacturing hub for the 

instant business, is one example. Polaroid 

Eyewear has also used the facility to manufacture 

sunglass lenses and over the last several 

months, have centralized much of the European 

warehouse, logistics and administration operations 

to Vale. The leadership team of Paul 

Sheerin, VP, Global Operations, Benjamin 

Kolher, VP & General Manager, Sales & 

Marketing, Katie Dugan, VP, Finance, and 

Graeme Ogle, VP Human Resources, has been 

spearheading this effort together with their 

teams and have established Vale as the global 

design, development and supply chain center 

for Eyewear. These efforts are yielding significant 

improvements in operations by reducing manu-

“We have a loyal 

customer base 

for instant film, so 

we will extend its 

life for as 

long as possible.” 

— TOM BEAUDOIN, 

POLAROID CFO/COO 

facturing and inventory costs and improving 

customer responsiveness. 

Synergies between Polaroid’s core businesses-- 

Instant, Consumer Electronics and 

Eyewear-- continue to be explored and the 

progress done thus far would not have been 

possible without the work of the information 

technology team led by Cindy Micavich, 

SVP/CIO. “It was critical that we leverage our 

IT resources so that we could provide innovative 

solutions throughout the organization,” 

O’Shaughnessy said. “We are excited about 

the progress the IT teams have made in bringing 

our systems together in order to help us 

effectively move forward.” 

“It’s an exciting time for Polaroid as they 

experience another transformation,” Petters 

said. Innovative technology and business 

practices are once again leading the way as the 

company moves forward in enhancing customer 

relationships and developing new 

products as the Polaroid brand strengthens 

itself around the world. PG 

A BRIEF TIMELINE OF 

POLAROID 

1937: The Polaroid Corporation 

is formed. 

1939: Polaroid products include 

glasses, ski goggles, stereoscopic 

motion picture viewers, a 

redesigned desk lamp, fog-free and 

dark-adapter goggles for the Army 

and Navy. The company receives a 

contract to develop heat-seeking 

missiles equipped with miniature 

computers. 

1944: Land conceives the one-step 

photographic system while on 

vacation in New Mexico with 

his family. 

1948: The first Land camera, the 

Model 95, is sold in Boston at 

Jordan Marsh department store on 

November 26th for $89.50. This 

model is the prototype for all 

Polaroid Land cameras produced 

for the next 15 years. 

1963: Polaroid introduces 

Polacolor, as instant color film is 

invented. The Model 100 Land 

camera, the first fully automatic 

pack film camera to include automatic 

exposure control, and Type 

48 and Type 38 Polacolor Land roll 

films, is introduced. 

1972: Polaroid SX-70 Land Camera, 

the first automatic, motorized, 

folding, single-lens reflex camera 

that makes self-developing instant 

color prints, is introduced. 

Lawrence Olivier acts as an advertising 

spokesman for the camera, 

and Life Magazine features the 

camera and Land on its cover. 

1977: Land is awarded his 500th 

patent. The OneStep Land camera 

is introduced. This inexpensive 

fixed-focus camera becomes the 

best-selling camera in the US, 

instant or conventional. 

1987: Polaroid Corporation 

celebrates its 50th Anniversary. 

1991: Edwin Land dies at the 

age of 82. 

1998-1999: Digital camera sales 

make Polaroid the number one 

digital camera seller in the United 

States. Introduction of the I-zone, 

JoyCam, and PopShots cameras 

and films is successful. 

2003: Polaroid Portable DVD 

player is introduced at Best Buy. 

2005: April 27th, Petters Group 

Worldwide purchases Polaroid 

making it a wholly owned 

subsidiary. 

2005: Polaroid LCD’s are ranked 

#9, Portable DVD players #1 and 

35 mm Digital Cameras #7 by NPD 

Group and Twice Magazine. 

2006: Polaroid launches CE 

products to Europe, Japan and 

Asia, continues to ship millions of 

packs of Instant film and launches 

the 2007 collection of sunglasses 

in Antalya, Turkey. 


:: 

CORNERSTONES investment process 

Partner with Legal 

Putting Strategy into Your Business 

On more than one project, we have 

all heard the dreaded words, “You 

better check with legal.” That is a 

conversation you assume will end in 

numerous unanswered questions, red 

marks all over your document and a trip 

back to the planning committee. 

The Petters Group Worldwide Legal 

Department wants those words to take on a 

new meaning for the companies of Petters 

Group. “We want to get involved on day one 

of a project to help give guidance and strategic 

support. Making the right decisions 

early can save time and money down the 

road,” David Baer, Chief Legal Officer said. 

Questions and issues come up on a 

daily basis whether relating to products, 

contracts, negotiations, transactions, acquisitions, 

investments or intellectual property 

matters. Guessing the right answer often 

takes you down the wrong path, and getting 

back on track can be time consuming 

and expensive. “We have seen deals die 

because a simple question was not 

addressed early on,” Baer said. With 

staffing in Minnetonka, Minn. and 

Waltham, Mass., the legal team is just down 

the hall or a quick phone call to the legal 

hotline. Most of the work is done in-house, 

which could lead one to assume the Legal 

Department is too busy for a question. 

Michael Phelps, Deputy Chief Legal Officer 

of Petters Group Worldwide, LLC said, “I 

would rather answer 100 simple questions 

than have to go to court because someone 

was afraid to ask a question.” 

When an issue does arise outside their 

area of expertise, the Legal Department has 

several resources available to call upon. 

They have developed relationships with 

outside law firms and advisors who have a 

good understanding of our companies and 

their specific needs. In most cases, using 

outside counsel is the only time a portfolio 

company will see an additional charge for 


WRITTEN BY ANDREA MILLER 

PETTERS GROUP WORLDWIDE CORNERSTONES 

STRATEGY 

We use a focused business strategy 

making leveraged acquisitions in 

companies that generate superior 

investment returns 

OPERATIONAL 

EXCELLENCE 

Our infrastructure provides 

consistent delivery of a high level 

of performance and portfolio 

support with a focus on quality 

and continuous improvement 

INVESTMENT PROCESS 

We follow discplined 

investment processes 

in making and managing 

investments 

RELATIONSHIP 

MANAGEMENT 

We develop, grow and 

leverage superior relationships 

and networks to enhance our 

effectiveness in meeting 

strategic goals 

The legal team in Waltham front row: Kim Goslant, Bill Boyd, Michael Traister. 

Back Row: Elisa Terrasi, Lynne Labanara, Jan Neville, Liane Osborne.

photo by Todd Buchanan 

legal services. The in-house staff’s time is 

covered in a monthly Petters Group allocation 

charge. 

“The legal expertise and business savy 

we have in our legal department is not often 

found in a company our size. They are a 

critical element to our success at Petters 

Group,” Mary Jeffries, COO for Petters 

Group said. Seven attorneys, an intellectual 

property manager, three paralegals and four 

administrative assistants staff the two 

offices. Finding them all in their offices at 

one time is rare as they are often flying off 

to be a part of a negotiation or evaluating 

product matters first hand. “If we need to 

be there to make sure the matter is handled 

properly, we do not hesitate to take the next 

flight out. Making sure the companies are 

comfortable with their decisions is our job 

so they can keep moving forward,” Bill 

(l to r) Thomas Ting, Michael Phelps, Colleen Sarenpa, 

Sarah Marquis and Lois Kruse. Missing from photo Kristy 

Torgrimson. (below) David Baer, Chief Legal Officer. 

“Making the right decisions 

early can save time and money 

down the road.” 

— DAVID BAER 

Boyd, Senior Vice President and General 

Counsel for Polaroid Corporation said. 

Allowing companies to keep their focus 

on their business strategies is just one of the 

many ways the Petters Group Worldwide 

Legal Department assists in moving companies 

forward. The Legal Department wants 

to partner with each Petters company to 

assist in its growth and help ensure success 

for every client. Soon, you will see the initial 

launch of a marketing campaign to help 

remind people to bring their questions to 

the Legal Department. Ask, Don’t Guess, 

What Would Legal Do? is the theme being 

designed into collateral pieces to be distributed 

throughout the companies. 

So the next time that little voice in the 

back of your head says, “I better check with 

legal,” do not dread it; view it as a partnership 

to help move your project forward. PG 

AREAS OF PRIMARY 

RESPONSIBILITY OF 

THE LEGAL TEAM :: 

•PGW ::David Baer & 

Michael Phelps 

•Polaroid ::Bill Boyd, Kim Goslant 

& Michael Traister 

•PCE ::David Baer, Bill Boyd & 

Tom Ting 

•PCB ::David Baer & Tom Ting 

•Petters Aviation ::David Baer 

•Petters Capital ::David Baer 

•Petters Hospitality ::Michael 

Phelps & Tom Ting 

•PMG ::David Baer & 


•SpringWorks Companies :: 


•Soniqcast ::Michael Phelps 

•Aaron Chang ::Michael Phelps 

•Real Estate ::Kim Goslant 

•Litigation ::Michael Traister 

•Trademarks ::Colleen Sarenpa 

•Domain Names ::Colleen Sarenpa 

•Human Resources ::Michael 

Phelps & Michael Traister 

•Corporate Records ::Lois Kruse & 

Jan Neville 

Please feel free to contact anyone in 

the legal department at any time. If 

you are not sure where to direct your 

questions or concerns, call the new 

Legal Hotline at 952-936-5200. 


:: 

GALLERY people and places 

Not So Itsy Bitsy for Aaron Chang ::Aaron Chang International 

made a big splash at SwimShow 2007, July 15-19 in Miami, FL. Presented by The 

Swimwear Association of Florida, SwimShow is the largest swimwear tradeshow 

in the world. For a full 5 days, SwimShow enables retailers to interact with reps 

and manufacturers to discuss designs, trends, pricing, terms, meet with favorite 

manufacturers and preview new lines, place orders and network with industry 

peers. Over 2000 buyers from the US and 39 different countries spanning the 

globe come to the show to view the very latest in swimwear, beachwear and 

resortwear from 350 exhibitors representing nearly 2000 lines. [1] Rick Engels, Petters 

Group CFO, & Aaron Chang [2] Aaron Chang models in booth [3] Teresa Gewedik, Midwest 

Sales Rep for ACI, & Norm Zwail, ACI CEO 

1 

Petters Group Celebrates 

Employee Appreciation 

Week ::Employee Appreciation 

Week, Sept. 17-22, was a chance for 

Petters Group Worldwide to give 

back to its hard working, dedicated 

employees. Each day centered 

around a particular company Core 

Value. For examples, Sunday 

1 

(Innovation) kicked off the week in a 

new way, with Family Day at the Minnesota Zoo. Other daily events included a book drive, 

a “Great Places to Work” luncheon at the Hilton downtown Minneapolis, and guest speakers 

Stevie Ray and Brother Louie DeThomasis. The most excitement, however, came Friday 

(Agility) with Office Olympics. Employees competed in a team event and 4 individual 

games. [1] Collating gives Courtney Jacks the chuckles [2] David McGee binding books 


2 

3 

2

Petters Group Goes to the 

Dogs ::On June 23rd, Petters Group 

Worldwide went to the dogs, literally. In 

conjunction with National Take Your Pet to 

Work Day, the Minnetonka office opened its 

doors and facilities to the employees’ best 

friends. Pets were asked to check-in to take 

photos, receive treats and sport the 

“Official Petters Group Worldwide Banana.” 

Awards such as “Best Tail Wager” and “Best 

Dressed” were given out. The day also 

included such events as American Pet Idol, 

Build Your Own Hot Dog lunch, and as part 

of a commitment to Charitable Giving, 

donations were taken throughout the day 

for Pleading Paws Pet Rescue who had staff 

on site with homeless pets available for 

adoption. [1] American Pet Idol Judges Rick 

“Randy” Engels, Patty “Paula” Hamm, and Tom 

“Simon” Kelly [2] Rick Engels and Rex [3] Amy 

Waara and Dudley [4] Rachel LeTendre and Ben [5] 

Melanie Martin and Sydney 

1 

3 

[3] Sandy Indahl aiming for David Baer in the stress 

ball executive toss [4] John Clinton stapler toss 

[5] Michelle Montazeri, winner of Pin the 

Blackberry on Tom 

2 

3 5 

4 5 

4 


:: 

GALLERY people and places 

Petters Hospitality Throws After Party :: 

The evening of June 21st was a cause of great celebration 

for Petters Hospitality. In the midst of a successful HITEC 

tradeshow at the Minneapolis Convention Center, Petters 

Hospitality and Guest-Tek, the largest single global 

provider of hospitality broadband services, presented “The 

After Party” at Bellanotte. This event was a chance for 

Petters Hospitality to really spread its wings and connect 

with other hospitality industry leaders. Among the guests 

that night were Petters Group Worldwide executives, 

business partners and local celebrities who enjoyed 

hors d’oeuvres, brandy tasting, and cigar rolling. [1] Greg 

Kandare, Mark Laumann, George Danko [2] Guests are provided 

complimentary transportation in vintage automobiles [3] Jon 

McGaunn, Mollie O’Brien, Mike O’Shaughnessy [4] Governor Tim 

Pawlenty, Bill Dunlap, David Baer [5] Mary Jeffries and Larry Harmer 

4 5 

PCB & Polaroid Show in Vegas ::From Aug. 21-22, the Nationwide PrimeTime! tradeshow was held at the Venetian hotel in 

Las Vegas, NV. Sunbeam and Polaroid showed the latest in their lines of home appliances and consumer electronics, respectively, in 

neighboring booths. [1] Sunbeam booth [2] 1st day of PrimeTime! [3] Polaroid booth 

1 


1 

2 3 

2 3

THE PETTERS GROUP 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 

CAMPUS 1 HOUSING 

4400 Baker Rd. 


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 

IMPACT 

MARKETING GROUP 

18760 Lake Drive East 

Chanhassen, MN 55317 

INFINITE POWER 

SOLUTIONS 

14998 West Sixth Avenue 

Building E, Suite 600 

Golden, Colorado 80401 

www.infinitepower 

solutions.com 

INTEGRITY MARKETING 

AND SALES 



JOHN T. PETTERS 

FOUNDATION 



www.johntpetters 

foundation.org 

METROPOLITAN 

MEDIA GROUP 

5001 American Blvd. W. 

Ste 400 

Bloomington, MN 55437 

PETTERS AVIATION 



www.pettersgroup.com 

PETTERS CAPITAL 

Flagler Center Tower 

505 S. Flagler Dr. Ste 700 

West Palm Beach, FL 33401 


PETTERS COMMERCIAL 

REAL ESTATE GROUP 




PETTERS 

CONSUMER BRANDS 




PETTERS HOSPITALITY 

Flagler Center Tower 

505 S. Flagler Dr. Ste 700 

West Palm Beach, FL 33401 

www.pettershospitality.com 

PETTERS MEDIA GROUP 




PETTERS WAREHOUSE 

DIRECT (CORPORATE) 




MALL OF AMERICA 

North Garden Level 3 

(N356) 

Bloomington, MN 55425 


MOUNDSVIEW SQUARE 

2537 Hwy 10 West 

Moundsview, MN 55112 


WAITE PARK / ST. CLOUD 

306 2nd Street Quad 

Waite Park, MN 56387 

www.petterswarehouse.com 

POLAROID CONSUMER 

ELECTRONICS 



www.polaroid.com 

POLAROID 

INSTANT IMAGING 

1265 Main Street 

Waltham, MA 02451 

www.polaroid.com 

POLAROID EYEWEAR 

Polaroid Eyewear AG 

Max Högger-Strasse 2 

8048 Zurich 

Switzerland 

www.polaroideyewear.com 

QUBIC LIGHT 

1 Harbor Drive 

Suite 200 

Sausalito, CA 94965 

www.qubiclight.com 

SONIQCAST 



www.soniqcast.com 

SPRINGWORKS 




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 

TAM O’SHANTER LODGE 

& CONFERENCE CENTER 

89405 Jack Pine Trail 

Cornucopia, WI 54827 

www.tamoshanterlodge.com 

TRIO MARKETING 



UBID 

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 

Actively managed Petters Group 

investments. 


:: 

REALITY BYTES jon mcgaunn 

Jon 

McGaunn 

COO and President 

Petters Hospitality 

WHAT IS YOUR FAVORITE 

ELECTRONIC GADGET? 

It has to be TIVO - the convenience of 

watching what you want, when you want. 

WHAT WAS THE LATEST DESTINA- 

TION ON YOUR VACATION LIST? 

I have two answers: the kids want to go to 

Colorado to ski, which will happen later 

this year, and my wife and I are planning to 

go to England where she was born but has 

not been back to since she was a baby. 

WHAT WOULD YOUR WIFE 

SAY IS YOUR WORST HABIT? 

It is tough to go out to eat or stay at a hotel 

with me. I worked at the Ritz-Carlton so I 

have been trained on luxury service. I tend 

to over analyze the service because I expect 

the highest level of service and you don’t 

always get this at Wendy’s. I can always tell 

if the person really cares about their job or 

if they are just picking up a pay check. 

WHAT IS YOUR FAVORITE 

RESTAURANT/MEAL? 

Prime 112 in South Beach. It is the most 

amazing modern steakhouse, with incredible 

food, a great atmosphere and, best of 

all, it has great service. 

WHAT IS YOUR DREAM 

CAR AND WHY? 

This is tough. I change my mind often 

because there is always something new 

coming out. If it is a dream car, I would 

have to say the Ferrari F430 Spider. It has 

all of the power you need and the latest and 

greatest technology, with a classic look. 


WHAT IS YOUR FAVORITE ELECTRONIC GADGET? 

It has to be TIVO - the convenience of 

watching what you want, when you want. 

IF YOU COULD DO ANYTHING 

FOR A JOB, WHAT WOULD IT BE? 

I would love to operate an NFL franchise. I 

think the amount of time, effort, strategy 

and passion it takes to building a winning 

team and eventually a dynasty is enticing. 

In that atmosphere, no matter what barriers 

you have, the end result is that you stick 

together as a team and you win. It is very 

similar to what I am doing right now, and I 

love the fact that you can plan the strategy, 

execute it and see the results. 

HOW DO YOUR KIDS DESCRIBE 

YOU TO THEIR FRIENDS? 

Friendly, fun, and energetic. I have a lot of fun 

with my kids. JP just turned 9 and Hannah is 7. 

Both play sports and have fun doing them. Our 

house is always filled with the neighborhood kids 

who are swimming, playing and just hanging out.

Winter 2006 - Tiffany Nash

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