Tunnell Consulting of King of Prussia, PA is pleased to announce that we have developed and successfully implemented a structured and robust methodology that fully responds to the FDA's Process Analytical Technologies (PAT) initiative for pharmaceutical firms. Our approach, called Process Capability and Control, has already been applied -- with exceptional manufacturing results -- in two major pharmaceutical firms, helping clients achieve superior operational and quality results while significantly reducing compliance exposure.

Additionally, Process Capability and Control, or PC&C, responds to a host of internal and external pressures pharmaceutical firms are facing in today's aggressive healthcare environment. Outside pressures such as competition, legislation, regulation, and mergers, and inside pressures such as productivity improvement and cost management are directly addressed using the PC&C approach.

PC&C is the result of Tunnell's 40 years of experience in implementing practical solutions in manufacturing, using strategies such as Statistical Process Control (SPC), Design of Experiments (DOE) and Six Sigma. This experience, along with our technical pharmaceutical knowledge, has enabled us to develop an innovative approach that drives down process variation and improves such quality measures as Cpk (the degree of performance to specification), to yield fewer lost batches, fewer deviations, increased throughput, and lower compliance risk.

As the pharmaceutical industry knows, the FDA's PAT initiative urges "systems for continuous analysis and control of manufacturing processes based on real-time measurements." Two significant barriers to an effective PAT system are the inability to identify the critical parameters that cause variation, and the inability to access the data from disparate databases in a quick, simple fashion.

To overcome the first barrier, PC&C applies a mixture of formulation, manufacturing and statistical skills to identify key parameters. To overcome the second, PC&C uses a data integrating and reporting system called Pharma+Pro, that is validatable and available on numerous company desktops, so that process performance can continually be monitored. As a result, PC&C significantly outperforms "software alone" or "man-in-the-plant" short-term remedies. The approach is also quick to implement and easy to sustain.

PC&C is the latest product in Tunnell's growing list of strategies designed to help the pharmaceutical industry meet the challenge of compliance excellence. Founded in 1962, Tunnell Consulting is a proven consulting firm that integrates technical, process and organizational skills to deliver the greatest possible client results in Pharmaceutical Technical Services, Performance Excellence and Supply Chain/Transportation. We boost the operating performance of an extensive list of clients by expertly defining and analyzing problems and implementing cost-effective solutions that fit the unique needs of each client we serve.

Tunnell Consulting of King of Prussia, Pa, is proud to announce that 2002 -- the company's 40th anniversary year -- ended with record business expansion. The year was marked by dramatic revenue growth, market-driven changes in strategic focus, a significant broadening of services, and expansion in staff capabilities and office facilities. Tunnell President and CEO Bob Hill says the company's success is largely linked to its ability to manage the immediate and unique needs of its clients, most notably its pharmaceutical clients, who continue to demand exceptional scientific and technical knowledge to proactively respond to a tough regulatory and competitive environment.

According to Tunnell CFO Joe Hare, the company grew from $5.6 million in 1999 to $28 million in 2002, representing a compound annual growth rate of 49%. Staff increased 180% in the same four years, and the firm now fields nearly 100 consultants weekly at client sites. Last year's facilities expansion increased company headquarters by 68%, to 15,000 square feet, in new office and conference space in the same building you're accustomed to finding us, in the heart of the busy King of Prussia business corridor.

Tunnell Consulting offers services in three broad practice areas: Pharmaceutical Technical Services, Performance Excellence and Supply Chain/Transportation. In the past year, the company sharpened its strategic focus on the pharmaceutical industry, tailoring its technical, process improvement and supply chain services to give these clients total business improvement opportunities. Tunnell is perhaps the only management consulting firm that has expertise in all three of these critical areas. In addition, the firm continued to stress consulting projects in each of its separate disciplines, and managed assignments in a variety of manufacturing and service industries.

Service additions in 2002 were significant. The company acquired a dramatic and proven organizational transformation product known as ACT, or Accelerated Corporate Transformation, a process that has been implemented in several Fortune 500 companies. ACT markedly propels a company a quantum leap forward in key areas such as business growth, cost management and new product development. We are proud to have this product in our portfolio and we know it will admirably serve many of our clients.

Last year the company also took great strides in advancing its offerings to the burgeoning biotech field, in refining its approach to instituting a sustainable compliance culture for the pharmaceutical industry, in increasing its services to the railroad industry, and in maturing its Six Sigma product for a host of diverse client companies. In addition to adding new clients, the company continued to serve many old and respected ones, some who knew us nearly back when we were founded. In commemorating our anniversary, founder Ken Tunnell spoke to a company meeting and recounted the firm's beginnings as a sole proprietorship in 1962.

Staff additions and changes last year were also dramatic. Bob Hill officially assumed the role of CEO, replacing Pat Heaney who retired after 30 successful years. Hill brings the firm a widely-accepted expertise in organizational performance and a proven track record for developing the firm's vision and strategy. Meantime, Vice President Ray Schneider took control of our Performance Excellence Practice, replacing retiring Al Grafstrom, and bringing expertise in team building, process improvement and organizational change.

New to the Tunnell team was Dr. Robert H. Miles, who has taught at both the Harvard and Yale business schools, and who created our newest product, ACT. He joined us as a Vice President to help us implement this fast and focused organizational transformation approach. To help staff ACT projects and other performance excellence work, the PEx Practice also welcomed two new Principals, Mark Schroeder and Ted Shoneck; both have extensive credentials. And PEx Principal Dr. Ronald Snee released a new book, "Leading Six Sigma."

Added to our Pharmaceutical Technical Services Practice, headed by Vice President Joseph Tempio, was Principal Thomas McGurk, who has held top operations and manufacturing positions at major pharmaceutical firms. Our Supply Chain/Transportation Practice, headed by Principal Bill Connell, was significantly boosted by the addition of Principal Stephen Koller. And Vice President Susan Devane assumed responsibility for our growing marketing and sales needs.

One of our long term employees of 20 years is our receptionist, Robyn Keller. Robyn and her husband Steve were recently presented with a very special award called the JEVS Inspirational Award. JEVS, or Jewish Employment and Vocational Services, provides health, rehabilitation, skills training and job placement services. Robyn and Steve received this award for their unending "can do" spirit despite their physical limitations and Tunnell Consulting is very proud of their accomplishments.

As busy and productive as 2002 was, the year ahead promises more of the same. Says President and CEO Bob Hill, "Tunnell Consulting has learned that if you have the right people and the right expertise, and can deliver a personalized approach that truly matches a client's exact needs, then extraordinary results can be achieved. Despite our growth, Tunnell continues to be a roll-up-your-sleeves consulting firm that truly listens and responds to what a client needs. We value our clients' abilities enormously, and we know it's our job to build on those abilities to achieve greater business success -- first and foremost for our clients and, as a result, for ourselves as well."

Tunnell Consulting of King of Prussia, PA, is pleased to announce that respected business expert Dr. Dwight Porter has accepted an appointment to our Board of Directors and will assist the firm in key strategic, financial and marketing decisions. The appointment comes as the company experiences record growth in all segments of its business, and responds with staff and capability expansion in its three practice areas: Pharmaceutical Technical Services, Performance Excellence and Supply Chain/Transportation.

Dr. Porter is the president of Applied Decision Resources based in St. Paul, MN, and is an expert in strategic and marketing planning, pricing, and product management. He obtained his undergraduate degree in economics at Harvard University, earned his Ph.D. at the University of Maryland, and has taught economics, marketing and management at both the undergraduate and MBA levels since 1974. Among Dr. Porter's numerous career clients are 3M, Medtronic, AT&T, Sprint, Northwest Airlines, and the American Red Cross.

In joining the board, Dr. Porter enhances Tunnell's ability to more effectively respond to both internal and external demands during this period of intense growth, most notably in services to the pharmaceutical industry. According to Tunnell President Bob Hill, "Dr. Porter's considerable experience in the areas of strategic planning and financial management will help the company at a time when we must have a strategic vision that is built on a solid financial foundation. We believe his contribution to our future success will be substantial."

In accepting his appointment, Dr. Porter commented, "Not only does Tunnell Consulting have a great track record, and a unique commitment to client success, but I'm especially impressed with its breadth of offerings to the pharmaceutical industry. Its combination of technical services, operational efficiency, organizational effectiveness and logistics expertise position it to become one of the most influential firms within the industry in the coming decade."

Celebrating its 40th anniversary this year, Tunnell Consulting emphasizes a total organizational improvement strategy that combines technical expertise with process improvement, organizational change, operational efficiency and supply chain optimization; our pharmaceutical clients also benefit from expertise in regulatory and compliance matters. It is always the company's goal to offer clients an integrated consulting approach that leverages the firm's technical and organizational expertise for the client's maximum long-term benefit.

To meet our expanding pharmaceutical industry focus, Tunnell Consulting of King of Prussia, PA, is pleased to announce that Thomas McGurk has accepted the position of Principal in our Pharmaceutical Technical Services Practice. McGurk brings an exceptional knowledge of technical, operational and managerial processes to his position, and will use his expertise to help clients create and implement integrated solutions to their operational needs. Currently, McGurk is managing a major organizational effectiveness project for a top pharmaceutical firm in the region, focusing his efforts on improving capacity and throughput.

Over his 25-year career, McGurk has held positions with such diverse responsibilities as new plant start-ups, manufacturing strategy, plant performance improvement, and international operations. He has served in a variety of top positions, including Vice President of Operations for Whitehall-Robins, and Vice President of Manufacturing for Wyeth Ayerst Global Pharmaceuticals. He also served as Director of Technical Services for Schering-Plough Corporation, and Director of Operations for Wyeth Ayerst International in Ireland, where he headed the start-up of the largest European pharmaceutical plant for parent company American Home Products.

According to Tunnell Vice President Joe Tempio, head of the company's pharmaceutical practice, "Tom is an exceptional, seasoned pharmaceutical executive who brings broad skills and experience to our company; he will make a strong contribution to our growth." Adds McGurk, "Because I've worked in a variety of functions, I think I have a real understanding of not just the technical and managerial skills required at each level of a pharmaceutical organization, but also an understanding of the people in these positions. At this period in the industry's history, I hope that kind of understanding can help pull the pieces of the puzzle together."

Tunnell Consulting emphasizes a total organizational improvement strategy that combines technical and regulatory expertise with process improvement, organizational change, and supply chain optimization. In addition to Pharmaceutical Technical Services, Tunnell Consulting has two other key practice areas, Performance Excellence and Supply Chain/Transportation. When appropriate, consultants in all three areas work together in quality assurance/regulatory compliance, laboratory and analytical services, product development, and manufacturing/production.

We are pleased to have Thomas McGurk on our staff to meet the growing needs of our business and our clients' businesses. Please feel free to contact him at 610.337.0820 or mcgurk@tunnellconsulting.com.

Tunnell Consulting is pleased to announce that company vice president Ray Schneider has assumed leadership of the firm's newly-renamed Performance Excellence Practice, following the retirement of practice head and vice president Al Grafstrom. The transition comes as Tunnell Consulting celebrates its 40th anniversary this year, and as the firm continues to experience record growth.

Grafstrom played a key role in the company's success. He joined the firm in 1986 and used his engineering knowledge and top-level corporate management experience to boost client success in manufacturing, strategic planning, distribution logistics and continuous improvement. Always customer- and quality-focused, and an excellent relationship builder, Grafstrom secured many of the firm's larger clients and generously helped mentor younger consultants. We're happy to report that Al Grafstrom will continue to be available to his long-term clients, continuing more than 25 years of respected consulting work.

Schneider has nearly 15 years of consulting experience, and has been responsible for implementing process improvement and culture change strategies for dozens of companies from pharmaceuticals to heavy manufacturing to dot-coms. An accomplished educator and facilitator, and a trained engineer, Schneider is a recognized expert in the areas of process improvement, team building, statistical process control and organizational change. He works closely with clients to improve overall company performance, with a keen eye on results. Schneider's practice, formerly the company's Quality Management practice, now combines a broad range of advanced process-enhancing tools and techniques with Six Sigma as its flagship product.

According to Schneider, the Performance Excellence, or PEx, practice will continue to stress an implementation, results-oriented approach that combines the firm's organizational, process improvement and technical expertise for maximum client success. The practice is designed to give clients extraordinary control of their processes so they can cut waste, slash cycle time, increase customer satisfaction and boost profits.

In addition to the PEx practice, Tunnell Consulting has two other key practice areas: Technical Services, with a primary focus on the pharmaceutical industry, and Supply Chain/Distribution/ Transportation. The three practice areas are integrated to give our clients the greatest possible benefit and value.

Please join us in wishing both Al Grafstrom and Ray Schneider the best of luck in their new endeavors.

Tunnell Consulting is pleased to announce that President and CEO Bob Hill has now assumed full responsibility for the leadership of the firm following the official retirement of Pat Heaney, who had led the company since 1988. Heaney will retain his position as Chairman of the Board, and will continue to be available to long-term clients for consultation. The official change-of-hands follows a two-year transition period in which Hill, who joined the firm in 1989, gradually assumed overall responsibility for Tunnell's three main practice areas: Pharmaceutical Technical Services, Performance Excellence, and Supply Chain/ Transportation.

The transition comes at a time when Tunnell Consulting, an employee-owned company, is growing substantially in all its practice areas and is continually adding new expertise to its staff. Company sales more than tripled between 2000 and 2001 and continued record growth is anticipated this year. The company currently supports more than 100 consultants in the field who deliver technical and organizational expertise to a broad range of manufacturing and service industries with a particular focus on helping pharmaceutical firms achieve operational efficiency.

According to Hill, the firm will continue to emphasize an implementation, results-oriented approach that stresses effective knowledge transfer to the client. It is the company's strategic goal to offer clients an integrated consulting approach that appropriately leverages the firm's technical and organizational expertise for the client's maximum long-term benefit.

Tunnell Consulting is celebrating its 40th anniversary this year.