California Companies Take Courageous Step to Expand and Invest

Generate Revenue and 110 Jobs in Areas of High Unemployment

Amid the current economic doom and gloom, there is a silver lining to new growth and economic development in some of the poorest sections of the state. The California Enterprise Development Authority (CEDA) today announced bonds will be issued for three major consumer product manufacturers:

* Pocino Foods Company, City of Industry, Los Angeles County: $9 million

* Kieran Label Corporation, San Diego County : $3 million

* Ramar International Corporation, Pittsburg: $10 million

"The approval of special industrial bond financing arranged by CEDA and local jurisdictions clears the way for the three companies to expand their operations. This will create more jobs and higher-than-average wages in impoverished areas where unemployment rates are well above the state average," said Wayne Schell, President and CEO of the California Association for Local Economic Development (CALED). CALED is the professional economic development organization that created CEDA as a one-stop shop to expand economic development financing opportunities and maximize availability of capital for small- and mid-sized businesses.

CEDA is First to Use Federal Mechanism to Soften Business Credit Risk

Pocino Foods was aided by CEDA in taking advantage of a little-known change contained in the housing stimulus legislation passed by Congress and signed into law by the President last summer. That provision, allowed CEDA to be the first issuer in California of a "support letter of credit" secured from the Federal Home Loan Bank Board for an industrial development bond. This means that if a bank's rating is not strong enough or the market is skittish (as it has been lately), the company can pay a fee for a "back-up" letter of credit, which facilitates the business's access to expansion capital. With the right timing and success of Pocino in using this new federal mechanism, CEDA is working to make this new credit tool available to other businesses for expansion projects.

Pocino, Kieran and Ramar each applied for multi-million dollar bonds for planned expansions in their respective areas.

Pocino Foods Company - City of Industry

Pocino Foods produces meat and poultry products sold at Smart & Final, Subway, Ralph's Markets and Safeway. The company's existing facility needs infrastructure upgrades and new equipment to comply with current and future food processing industry standards. The estimated $9 million in bond financing approved for the project will refinance $5.5 million of existing debt and an additional $3.5 million to renovate and purchase equipment for an existing building.

Pocino Foods currently has 190 employees and expects to add 20 new jobs within two years of completing the project. The City of Industry's current unemployment rate is 159 percent of the 2007 statewide average.

Kieran Label Corporation - San Diego County

Kieran Label Corporation manufactures tags and labels for such companies as Home Depot, Costco, Epson, JVC, Sony, Dell, Scripto and Samsung. The company has outgrown its 30,000-square-foot location in El Cajon and is planning to expand into a 54,000-square-foot building in the Otay Mesa Enterprise Zone. This zone has a poverty rate exceeding 110 percent of the state average, and the median household income is less than 80 percent of the statewide average

Kieran applied for a $3 million IDB issued by Union Bank to finance the expansion. As a result of this latest economic development project in San Diego County, another 23 jobs will be added to the existing 44 at Kieran.

Ramar International Corporation - Pittsburg

Ramar International started as a family business in 1968 and quickly evolved from a three-store retailer and wholesaler of Filipino food products into a processor of Asian specialty foods that are not importable from other countries. With more than 100 employees, Ramar is the leading manufacturer and distributor of frozen Filipino and Asian food in the U.S. It is one of the first USDA-approved plants to provide a consistent and safe supply of ethnic frozen food.

To meet increasing demand, Ramar sought $10 million in bonds to expand its facility into an adjacent building, which formerly housed a grocery store and skating rink. The financing arranged by CEDA and the City of Pittsburg will enable Ramar to add 67 manufacturing jobs to its current workforce of 137. The project is located in the Pittsburg Enterprise Zone where the unemployment rate is 142 percent of the statewide average.

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