Applied Technology Systems Moving HQ to Cleveland; Education And Training Company Sees Large Growth Opportunities in Northeast Ohio.

CLEVELAND -- Applied Technology Systems, Inc. (ATSI), a provider of education, training and operations management services, announced it has moved its corporate operations to downtown Cleveland.

"Cleveland is an attractive market for ATSI and we look forward to growing our business by offering our proven model of helping our youth achieve their potential through academic and vocational training," said Clark Hayes, chief executive of ATSI, which employs about 800 and has annual revenue of about $28 million. "Cleveland is a city on the rise and we want to be part of that rise."

The company operates Job Corps centers in Cleveland and Detroit; provides services for Job Corps centers in Texas and Kentucky; and provides job placement services to Job Corps graduates in Mississippi, South Carolina and Tennessee from its office in Atlanta. Job Corps is an educational and vocational program administered by the Department of Labor for young people between 16 and 24.

ATSI considered moving the offices, formerly located in Arlington, Virginia, to other communities where it operates, including Atlanta. Hayes said he chose Cleveland because he believes the market has a tremendous need for his company's services and ATSI will be able to successfully grow here. The Cleveland Job Corps center is ATSI's largest operation.

"Cleveland is our flagship, our treasure. We will use our experiences there to improve our educational and training programs throughout the country," Hayes said.

The Cleveland headquarters will shortly have about 13 employees and Hayes said he expects it to grow to about 50 within two years. ATSI employs about 135 at the Job Corps center it operates in Cleveland, 10660 Carnegie Ave. The company's headquarters is in the Penton Building, 1300 E. Ninth St.

"Northeast Ohio has tremendous assets for service companies like ATSI that are looking to grow their headquarters operations," said Susan Luria of Team NEO, the regional economic development organization. Team NEO assisted ATSI in its efforts to locate downtown. It helped it secure job creation tax credits from the State of Ohio and City of Cleveland and deal with real estate and other issues. "ATSI's focus on providing job training services to disadvantaged youth fits with Team NEO's objective of increasing job opportunities in Northeast Ohio's core communities," Luria said. "We look forward to connecting ATSI's training programs with growing employers who are searching for qualified, well-trained workers."

ATSI offers customized, employer-driven training to 320 students in the Cleveland Job Corps center. It works with employers to develop internship programs and employment opportunities after the student's graduate. Graduates of the program in Cleveland earn a high school diploma.

ATSI intends to grow by adding Job Corps operations in other markets and by providing workforce development services to governments and schools.

ATSI took over operation of the Cleveland Job Corps operation in 2000 when it was one of the worst performing centers in the country, according to annual evaluations done by the Department of Labor.

"The Cleveland center's operations have improved dramatically and we recently received a five-year renewal of our contract," Hayes said. "Improvements will continue, particularly as we prepare to move into our new facility in the Collinwood neighborhood. We won't be satisfied until the Cleveland center is recognized as the best center in the nation."

The Department of Labor is expected to begin construction in December on a new Job Corps Center on 22.5 acres at 498 East 140th St. ATSI is exploring converting its existing building into a training facility for health care related jobs.

ABOUT APPLIED TECHNOLOGY SYSTEMS INC.

Applied Technology Systems Inc. (ATSI) operates or provides services to Job Corps centers in seven states. Founded in 1989 and incorporated in 1992, ATSI is an operations management firm located in Cleveland, Ohio, which provides services to local, state and federal government agencies, private corporations, foundations, and other organizations. ATSI specializes in operations management, organization development, youth development, and training and technical assistance.

ABOUT TEAM NEO

Team NEO is a private-sector-led regional economic development organization formed through the collaboration of many of the region's leading business organizations to support and stimulate higher levels of targeted business attraction, retention and expansion in Northeast Ohio. Team NEO represents the Northeast Ohio region covering 13 counties: Ashtabula, Columbiana, Cuyahoga, Geauga, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne. Team NEO's headquarters is in Akron at 395 Ghent Rd., Suite 115 with an office in Cleveland at 737 Bolivar Rd., Suite 2000.