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businesssphereVol. 19 No. 3News from the Iowa Department of Economic DevelopmentSearch Results in One Match: IowaWith construction of a 600-million data center, America’s favoriteemployer is coming to Council Bluffs, IowaWorkplace scenes such as thesephotos (above and below right)will soon be happening inCouncil Bluffs as Google —The Best Company to WorkFor in America — announcedplans to build a 600-milliondata center in Iowa.INSIDE Peregrine Financial Groupmoves headquarters to Iowa World Cup TriathlonCurcuit comes to Iowa TEAM Technologies leadsthe way in data security The Principal FinancialGroup’s CIO explains why ITprofessionals thrive in Iowa Iowa’s Mechdyne helpscustomers see clearly (photobelow)“Google, welcome to Iowa!” With those fourwords, an ecstatic Iowa Governor Chet Culverannounced that one of western Iowa’s largesteconomic development projects ever is becoming a reality. Google, the preeminent Websearch-engine company, is locating a majordata center in Council Bluffs. The 600-milliondata center will provide 200 jobs for the localeconomy and “will have a tremendous impacton Council Bluffs, western Iowa and the entirestate,” Culver says.“We’re thrilled to announce our plans for adata center in Council Bluffs, which will helpus continue to provide our users and customers with the best possible service,” says PaulFroutan, director of operations, Google Inc.“Council Bluffs has the right combination ofenergy infrastructure, developable land andavailable workforce for the data center.“Additionally, the team from the local community that welcomed us has worked exceptionally hard throughout the selection process. Allof this has truly distinguished Council Bluffsas a great place for our new data center. Weare grateful for the support from the state andlocal governments throughout our evaluationprocess.”The Google data center will be operationalin spring 2009. The first round of hiring byGoogle — named the 2007 Best Company toWork For in America by FORTUNE Magazine— will be 100 jobs. Eventually, more than 200jobs will be created at the data center.“Jobs at the Google data center will focus onensuring that the facility’s computers are running at optimum speed and efficiency 24 hoursa day, seven days a week,” says Froutan.Continued on Page 6

b usinessphereMechdyne Helps Customers See ClearlyImagine stepping into a room of high-tech visualizationwhere virtual reality technology allows you to sit in a car ortractor that’s yet to be produced. Imagine floating throughthe human body’s blood stream to understand how a medicinewill affect it. Or, imagine flying a battle mission with the U.S.Air Force.This is not science fiction. Marshalltown-based MechdyneCorporation is producing virtual reality systems that are doingthat and more. In fact, the Virtual Reality Applications Center(VRAC) at Iowa State University is the site of a landmarkinstallation.VRAC’s C6 virtual reality environment, developed byMechdyne, is perhaps the most impressive virtual realityenvironment in the world, according to Jeff Brum, Mechdynevice president of marketing and business development.“The six-sided system creates the most detailed, realistic virtualimagery to date,” says Brum. “The six projected sides surroundusers, placing them inside 3D models or virtual worlds to create a sense of presence within the virtual space.”Brum says the system’s 100 million pixel resolution is morethan 16 times the resolution of typical immersive rooms andis more than double the resolution of Mechdyne’s previousvirtual reality installations.“The standard High Definition television is two million pixels,”says Brum. “So the image clarity of our system is amazing.”Mechdyne was founded in 1996 by Dr. Chris Clover, an IowaState University Ph.D. graduate with extensive experience atthe University’s Virtual Reality Applications Center. nU.S. Air Force planes approach targets over desert terrainduring simulations on a Mechdyne-produced system atIowa State University’s Virtual Reality Applications Center.2

Peregrine Financial Group Set to Fly into IowaPeregrine Financial Group —one of the largest non-clearingfutures brokerage firms in thenation — will soon be moving from itsdowntown Chicago headquarters toCedar Falls, Iowa. The move will takeplace following construction of a 13million headquarters in the northeastIowa community. With the move,Peregrine Chairman and CEO RussellWasendorf will have come full circle.He started Peregrine in the basementof his Cedar Falls home in 1980. Sincethen, “We’ve grown to become the30th largest non-banking financialcompany in the U.S.,” says Wasendorf.In the beginning, Wasendorf ’s firmacted as a consultant to businessesthat had a stake in the commoditiesmarket and wanted to manage theirrisk by purchasing futures. “We thenstarted an in-house brokerage to followthrough on our plans for the clients.Before long, our brokerage operationswere growing faster than theconsulting,” says Wasendorf.Throughout this time frame, Peregrineinvested in technology. Its PFG BESTDirect online trading system was oneof the first systems to deliver customerorders directly to the Chicago MercantileExchange’s Globex platform.“Our system is known for its efficiencyand reliability,” notes Wasendorf. “Itmakes the futures markets more transparent for all participants, and it offersreal-time streaming prices and charts.”While Peregrine will continue to havean office in downtown Chicago, the hubof commodities and mercantile trading,Wasendorf believes the move of his100-plus-employee headquarters toCedar Falls will help him grow hisbusiness. “As of now, our employeesABOVE: Peregrine’s 50,000-square-foot, three-storyglass headquarters will eventually house about 200employees. It will include a fitness center, daycarecenter and Montessori school, and a four-staremployee cafeteria.LEFT: Peregrine Chairman and CEO RussellWasendorf started Peregrine in the basement of hisCedar Falls, Iowa, home. Since then the company hasbecome the 30th largest non-banking financialcompany in the U.S.are on board,” he says. “Peregrine’saccounting department is already inIowa. When our headquarters project iscompleted, it will help increase our onlinecustomers as well as service an increasingnumber of worldwide offices.”The Iowa Department of EconomicDevelopment is assisting the project withits 350,000 award from the CommunityEconomic Betterment Account (CEBA)and approval of tax benefits from its HighQuality Jobs Creation (HQJC) program.An IDED award is also helping financedevelopment of a high-bandwidth fiberoptic connection to the headquarters.With expertise in commodities futures,financial futures and options, forex products and services, and managed futuresaccounts, Peregrine Financial Group helpsits corporate and individual customersmanage risk. While Wasendorf believesthere is risk associated with Peregrine’smove to Iowa, he is confident that therewards will be greater. “The ability totake on risk probably takes more skill thanmanaging to avoid risk,” he says. 3

b usinessphereNordstrom’s Iowa Center Facilitates Online Sales 1 billion worth of merchandise will soon be distributed from 900,000-square-foot facilityWith a statedgoal of hitting 1 billion inonline sales within thenext two to four years,Seattle-based Nordstromis expanding its CedarRapids, Iowa, fulfillmentfacility to handle the increased business. To keeppace with its Web-basedsales, Nordstrom —No. 40 among InternetRetailer Top 500 RetailWeb Sites — is adding258,000 square feet to itsIowa location to doublethe size of the contactcenter’s working space to more than 500,000 square feet.“The Nordstrom expansionbrings a level of visibility tothe region that not manycompanies can provide,”says Mark Seckman,president of Priority One,the economic development division of the CedarRapids Area Chamber ofCommerce. “This project isreally something we’ve beenworking toward for 10 yearssince they decided to locatein Cedar Rapids in 1997.”“We are excited to expand our presence here in CedarRapids,” says Jamie Nordstrom, president of NordstromDirect, which handles all the company’s catalog and onlinesales. “Our online business has experienced rapid growth andwe are committed to building a billion dollar business withintwo to four years. We’re confident we’ll continue to find thelocal talent we need in the Cedar Rapids community tosupport our efforts as we move forward.”The 50-million expansion will expand the footprint of thefacility to nearly 900,000 square feet and will add more than500 new jobs within the next several years. “It was oncethought that customers would either shop online or at yourbrick-and-mortar store,” says Nordstrom. “It’s now becomeapparent that customers are loyal to brands, not to channels.When our expansion is complete, it will coincide with systemsupdates that will create a single view of inventory across channels. This will result in a more seamless shopping experiencefor customers whether they choose to shop online, in-store orby phone.”Nordstrom — one of the nation’s leading fashion retailers with158 U.S. stores in 28 states — looked at locations throughoutthe U.S. for the expansion project. In the end, says Nordstrom,everything pointed to Iowa. “We started our fulfillment operation in Cedar Rapids 10 years, ago,” he says. “We’ve found atremendous workforce in Iowa, and we’ve found the climatefor business in Cedar Rapids as positive as anywhere we dobusiness. The location has just been outstanding.”4Nordstrom’s expansion project is receiving job trainingassistance through the Iowa Industrial New Jobs TrainingProgram, coordinated by the Iowa Department of EconomicDevelopment. The training will be provided locally byKirkwood Community College.Nordstrom Direct was launched in 1993 as a catalogbusiness. Nordstrom.com was launched in 1998 with thegoal of providing customers with the Nordstrom shoppingexperience online. “The new catalog program, onlinemerchandise that is more integrated with Nordstrom stores,and our thriving partnership in Cedar Rapids, Iowa, are allimportant elements in our multi-channel strategy to reach 1 billion in sales,” says Nordstrom.For more information on how an Iowa locationcan help your company grow and prosper, visitwww.iowalifechanging.com or call a project managerof the Iowa Department of Economic Development fora confidential consultation at 800.245.IOWA (4692).

Iowa JoinsWorld Cup CircuitDes Moines became a stop on the world cup triathloncircuit this year with the launch of the Hy-Vee World CupTriathlon. The inaugural event attracted 97 elite athletescompeting for the largest purse in the sport’s history.Winners Rasmus Henning in the men’s division andLaura Bennett in the women’s division each won 200,000 and a Hummer H3 vehicle. Elite athletes representing more than 20 nations swam, biked and ran thedowntown course that began at Gray’s Lake and endedat the State of Iowa Capitol Building. In 2008, Des Moineswill host the U.S. Olympic Trials for the triathlon. LEFT: With Iowa’s historicCapitol Building in the background, competitors in theHy-Vee World Cup Triathlonride bicycles throughdowntown Des Moines.BACKGROUND: DanishOlympian Rasmus Henningruns to a first place finishin the Hy-Vee World CupTriathlon in Iowa to claimthe largest purse in thesport’s history.BELOW: Laura Bennett ofthe United States crossesthe finish line to win thewomen’s division of theHy-Vee World Cup Triathlon.5