McGovern Fall 2002 Newsletter

November 2002 Press Release

Mr. McGovern is the Chairman and CEO of McGovern Capital LLC, which provides Intellectual Property Rights Strategy, and originates, structures and implements capital formation, joint ventures and business alliances. McGovern Capital invests early stage capital and/or provides facilitative (legal, accounting, tax, securities, etc.) services to its investment companies, which are primarily companies commercializing proprietary technologies. Please review McGovern Capital's Investment Criteria before submitting a business plan summary to plans@mcgoverncapital.com.

He has been a principal negotiator/participant to over 40 strategic alliances, approximately 40% of which have been foreign joint ventures. Mr. McGovern is the principal of McGovern & Associates which  specializes in corporate law and intellectual property strategy with an emphasis on emerging businesses, mergers and acquisitions, securities, patent enforcement, corporate and partnership joint ventures, capital formation and R&D financing.

Mr. McGovern is also co-Chairman of Angstrom Publishing LLC. Angstrom and Forbes has co-published since 2002 a monthly newsletter on Nanotechnology for worldwide distribution, entitled The Forbes/Wolfe Nanotech Report.  The Forbes/Wolfe Nanotech Report is the first publication targeting the business of nanotechnology, the precision creation and manipulation of atomic scale matter. Each monthly issue of the Forbes/Wolfe Nanotech Report delivers to readers in depth and expert analysis of what corporate executives, venture capitalists, politicians and scientists alike call the “Next Industrial Revolution.” The Nanotech Report's launch was the most successful newsletter launch in Forbes' history.

In his Business Activities, Mr. McGovern has helped lead many of his partners and clients to the forefront of their respective industries. He serves on the Board of Directors (Governance and Audit Committee) of The Sports Authority/Gart Sports Company, which is the largest ($2.7B) sporting goods retailer in the U.S and Nobel Education/NYSE (Compensation and Governance Committees). He is a founder/key shareholder in over twenty companies, five of which are the worldwide leaders in their respective industry's product categories. He was one of the three investing founders of South Beach Beverages, producers of SoBe products, which were the fastest growing "new age" beverages in the United States and the leader of the neutraceuticals industry. SoBe was sold to PepsiCo in 2001 for $370MM.

McGovern coordinates the world-wide licensing program for NeoStrata Inc., a company owned by the two inventors and holders of the worldwide patents for Alpha Hydroxy Acids for use in skin care. AHA's are incorporated in approximately 40% of all skin-care products worldwide. The licensing program standardized and implemented by McGovern Capital has resulted in over 40 licenses including such companies as L'Oreal, Chanel, Avon, Pond's, Beiersdorf, Johnson & Johnson, Estee Lauder and Neoteric. In November 2003, McGovern & Associates litigated successfully on behalf of TriStrata Technology, Inc., which won its patent infringement suit against Valeant Pharmaceuticals International, formerly ICN Pharmaceuticals, when the jury in the United States District Court in Wilmington, Delaware found that seven claims of the two patents at issue were willfully infringed.  Click here for an announcement of the verdict and the court's rejection of subsequent motions: Press Release.

Mr. McGovern is a part owner and IP Strategist for Aquea Scientific, winner Winner of Health & Beauty America (HBA) Cosmetic & Toiletries Magazine Best New Technology Award 2006. Aquea's Aqueous Delivery System (ADS) delivers ingredients utilizing nanotechnology that were once thought impossible to combine with wash-ons such as soap, cleansers, and shampoos without compromising efficacy. The company's flagship product, Aquea SPFTM affords soap manufacturers and brand marketers the ability to enhance their wash-on products with UVA and UVB protection. Mr. McGovern is Chairman of Aquea's Board of Advisors.

Also in the field of nanotechnology, McGovern Capital is one of three owners of the largest manufacturer and worldwide seller of carbon filters for water and air purification, KX Industries LP (KXI).  KXI has over 50 issued patents and created and supplied the initial “end of tap” filters for both P&G/PUR and Clorox/Brita (currently a $500 million market).  In 1996, KXI invented and supplied the first refrigerator water filters to Electrolux/Frigidaire, which currently is a $200 million market.

KXI has developed a revolutionary nanotech microbiological water filter (MB) that incorporates anti-bacterial and anti-viral agents into its structure.  The MB technology is patented and is the basis for a full range of water filter products that effectively produce sterile, chemically-purified water from virtually any water source (e.g. river water in Africa). Further, the nanotech MB is nationally certified to U.S. EPA and California Department of Health Services standards. 

MB’s effectiveness and low cost permit a full range of products to be manufactured, supplied and suitable to both the developed world and the developing countries markets.  This ground-breaking technology is expected to significantly reduce water-borne diseases (WBD), which claim approximately 2.2 million deaths in the world annually. WBD also cause about 4 billion cases of GI disease each year with annual direct economic losses estimated by the United Nations to exceed $70 billion. McGovern Capital is working with KXI to penetrate the multi-billion dollar worldwide retail water filter market.

Mr. McGovern has been appointed Vice-Chairman of KX's international entity.

McGovern Capital is part owner of Optigenex, a skin care products and dietary supplements company that develops products designed to improve immune function, increase DNA repair and decrease DNA damage.  As individuals age, our bodies and DNA interact with environmental matter that can damage our DNA.  Optigenex’s focus on DNA involves repairing and protecting the genetic code as a means of controlling how we look and how we feel as we age chronogically.  McGovern Capital acts as the Company's intellectual property strategist, as Optigenex works to ensure that “growing older does not have to mean feeling older.”

Mr. McGovern is also a part owner and coordinates the worldwide patent enforcement program for VLIW Technologies LLC, a company which owns the exclusive worldwide rights to license a suite of very long instruction word (VLIW) patents for use in the latest generation of microprocessors and software compilers.

In the networking and security solutions space, McGovern Capital is a part owner of Perimeter Internetworking , a managed service provider (MSP) that hosts networking and security solutions for mid-sized enterprises with high data availability requirements. Perimeter's bundled service offering includes wide area network connectivity and management, high-speed Internet access, and 24/7 managed firewall, e-mail, VPN, calendaring and voice-over IP.

McGovern Capital also has ownership interests in Data Tech LLC and Court Tech LLC, which provide a wide selection of business solutions to the legal community. McGovern Capital's affiliate, Asia Holdings LLC is a principal in various businesses in Asia including certain teakwood plantations in Cambodia and a bamboo products company, based in Thailand and Cambodia.

Mr. McGovern is a director of New York Business Roundtable Inc., the U.S. market leader in high-quality business forums bringing together financial executives and senior business people. These meetings bring together business people that want to develop business, share ideas, build relationships and hear from industry speakers. These events are attended by senior-level managers of growth companies and professionals in private equity, venture capital, commercial banking, buyouts and mergers and acquisitions.

Mr. McGovern has been a participant and head negotiator in many equity financings and ventures which have raised substantial sums in committed fundings and/or royalties with such companies as Exxon, Pfizer, 3M, Lever Brothers, Colgate-Palmolive, The NutraSweet Company, Squibb, BASF, National Patent, The Drackett Company, Advanced Polymer Systems, Johnson & Johnson, Avon, Beiersdorf, L'Oreal, Chanel and such venture capital firms as Prudential, First Chicago, Alan Patricof Associates, Warburg Pincus, Medtech and Oxford Partners. He has been engaged by entrepreneurs and other law firms to help develop and commercialize proprietary concepts and to structure and negotiate venture and acquisition-related transactions.

A graduate of Cornell University, Mr. McGovern is currently a member of the Board of Trustees (Co-Chairman of Technology / IP Committee) and is also a member of the Board of Directors of the Cornell Research Foundation. He was recently appointed to the Life Sciences Advisory Board (Co-Chairman of the Tech Transfer Committee) and the Board of the Cornell Hotel School recently established in Singapore. Recently, Mr. McGovern was announced as the Cornell “Entrepreneur of the Year” for 2006/2007. Mr. McGovern has been appointed to serve on the Executive Council for the Cornell Center for Sustainable Global Enterprise at the Cornell Johnson Business School. McGovern teaches a course at the Johnson Graduate School of Business at Cornell, entitled  Global Innovation and Commercialization.

He has served on the Cornell University Trustee Council, Administrative Board. He is a Founder, Cornell Club NYC, and is a member of the Cornell Advisory Council, Entrepreneurship and Personal Enterprise (EPE Executive Committee), the Arts and Sciences School Council, and the Athletic Council. Mr. McGovern was the keynote speaker at the Johnson Graduate School of Management's Entrepreneurship & Venture Capital Symposium and is a frequent lecturer at the school.

Mr. McGovern has a law degree from St. John's University School of Law and studied at the London School of Economics and Political Science. He is a member of the Connecticut, New York and Pennsylvania Bars and was a member of the Executive Committee of the Connecticut Bar Association Section on Corporations. He has spoken around the world at various venture, business, and educational meetings regarding capital formation, patent enforcement and maximization of intellectual property value, business alliances, and ventures. (See Speaking Engagements) Mr. McGovern is a Fellow of the Foresight Institute which focuses its efforts upon nanotechnology, the coming ability to build materials and products with atomic precision, and upon systems that will enhance knowledge exchange and critical discussion, thus improving public and private policy decisions. Mr. McGovern is also the Co-Chairman of the Silver Shield Foundation, which provides college scholarships to the children of police and firefighters killed in the line of duty in New York, Connecticut and New Jersey.

Mr. McGovern's Contact Information: